Semiconductor News 20260504

Today’s semiconductor news brings us a situation that highlights the frenzy created by the never-ending AI boom and the serious distortions in the infrastructure and supply chains that support it: while the AI race has swelled capital spending by cloud providers to the tune of $700 billion, Nvidia’s CEO Jensen warned that the policy is backfiring, as U.S. export restrictions have reduced its share of the Chinese market to “zero percent.” There are also growing expectations for new technologies that push the limits of power and telecommunications, such as Softbank’s rare metal-free storage batteries and “optoelectronic convergence CPO” from NTT and others. In addition, internal organizational frictions that arise behind special demand have surfaced, such as the rush of non-semiconductor divisions to leave the Samsung Electronics Workers’ Union.

Main News

1. CSP CAPEX Grows to $700 Billion; Timing of ASIC Demand Uncertain
   Rising AI competition is pushing cloud service provider (CSP) capex toward the astronomical $700 billion mark. However, the timing of demand for ASICs, custom AI chips designed for specific applications, remains uncertain. This highlights the current state of AI infrastructure building, where capital investment is growing rapidly, while the return on investment and demand for specialized semiconductors is difficult to predict.
2. Nvidia CEO Jensen Says Chinese Market Share Has Dropped to “Zero Percent ”
   Nvidia CEO Jensen Huang said his company now has essentially “zero percent” share of the Chinese market. This is due to strict U.S. export control policies, which he noted have “almost already backfired. He expressed a strong sense of urgency that U.S. restrictions are encouraging Chinese companies to accelerate the development of their own AI chips, which in turn is encouraging China’s semiconductor independence.
3. Photoelectric fusion CPO is a game changer for ICT infrastructure, with six companies, including NTT and Furukawa Electric, among the leading candidates.
   The “photoelectric fusion CPO” technology, which Nvidia is also promoting, is attracting attention as a game changer that will bring power savings and higher performance to ICT infrastructure. Six major Japanese companies with strengths in optical communications and related technologies, including NTT, Seikoh Giken, and Furukawa Electric, are expected to play leading roles in the construction of this next-generation infrastructure.
4. Samsung Electronics Labor Union: 2,500 Employees Leave in 10 Days, Mostly from Non-Semiconductor Unions
   About 2,500 employees, mostly from non-semiconductor divisions, have left the labor union at Samsung Electronics in the past 10 days, saying that they will not become a “fringe benefit for semiconductors. The friction between the semiconductor division and the rest of the company, which is booming with special demand for AI, is having a serious impact on labor-management relations and organizational unity within the company.
5. SoftBank to Enter into Production of Rare Metal-Free Storage Batteries for Data Centers
   SoftBank has announced that it will enter into production of new storage batteries that do not use rare metals, which are unevenly distributed in certain countries such as China, for use in data centers where demand for electricity is rapidly increasing due to the spread of AI. This is a strategic initiative that combines security and environmental responsiveness, helping data centers that consume vast amounts of electricity to operate stably and conserve energy while eliminating the geopolitical risks associated with rare metal supply concerns.
6. Photonics Chip Maker Led by MIT Physicist to IPO in Hong Kong
   A photonics chip maker led by MIT physicist Yicheng Shen is moving toward an initial public offering (IPO) on the Hong Kong market. Photonics technology, which uses light instead of electrons to process data, is expected to be a next-generation semiconductor technology that will dramatically increase the speed of AI calculations and reduce power consumption. Startups with cutting-edge technologies are trying to accelerate R&D and practical applications through funding.
7. Elpida Memory, which went bankrupt, and TSMC, which took the world: analyzing the factors that divided them
   The article looks back at the history of Elpida Memory, which once led the Japanese semiconductor industry but went bankrupt, and Taiwan’s TSMC, which currently dominates the world foundry market, and analyzes the factors that divided them. The article is attracting a lot of attention. The lessons learned from the past, such as delays in making huge investment decisions and the ability to respond to changing customer needs, that separated the bright and dark sides of the two companies, provide important hints for surviving the current fierce competition in the development of semiconductors.
8. Concerns about the harmful effects of TSMC’s “one powerhouse” status, and the strength of Taiwanese stocks as seen through deregulation
   There is a growing debate about the harmful effects of the “one powerhouse” status of TSMC, the world’s largest foundry. The company’s presence is prominent in the Taiwanese market, and the overall strength of Taiwanese equities is being reevaluated through deregulation and other moves. There is an awareness of the risks of over-dependence of the global semiconductor supply chain and local economies on a particular company, and a mixture of caution and hope among investors and policy makers.
9. Risk of Uneven Distribution of Rare Metals Essential for High-Tech Products to China and Other Certain Countries
   It has been pointed out once again that rare metals, which are essential for the manufacture of semiconductors, AI infrastructure, and other high-tech products, are significantly unevenly distributed among certain countries, including China, as the source of these metals. As the conflict between nations over technological hegemony deepens, the stable procurement of raw materials has become a top priority issue for economic security. Companies are rushing to diversify their procurement networks and develop alternative materials, and securing rare metals has become a bottleneck for the growth of the semiconductor industry.
10. South Korean Columnist Warns Populist Policy of Cash Handouts Will Cripple Semiconductor Industry
    A South Korean columnist has strongly warned that populist cash handout policies will put pressure on the country’s finances and consequently reduce the competitiveness of the semiconductor industry. The columnist made the stark point that continuous and large-scale investment and support for core industries such as semiconductors are essential for winning in the fierce global competition, and that precious resources should not be squandered on one-shot policies.

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