The US Trade Representative (USTR) under Biden administration is preparing to reinstate tariffs on certain technology products imported from China, including GPUs and motherboards. The 25% duties, initially imposed by the Trump administration in 2019 but later suspended, are being revived as part of broader efforts to address concerns over China's economic and trade practices. The tariffs are intended to protect American companies from what the administration describes as unfair Chinese trade actions like intellectual property theft and forced technology transfers that undermine U.S. competitiveness. While no specific effective date was provided, the reinstated tariffs are expected to impact major Chinese computing component suppliers significantly. The revival of the Trump-era tariffs marks a reversal from the previous administration's move to temporarily suspend the duties in 2020 as a goodwill gesture during broader trade negotiations with Beijing.

However, those talks ultimately stalled amid the COVID-19 pandemic and rising bilateral tensions over economic and national security issues. Industry groups have expressed concerns that reviving the tariffs could disrupt tech supply chains, increase costs for U.S. companies and consumers, and potentially invite further Chinese retaliation. The tariffs would apply to GPUs, motherboards and other computing components assembled in China regardless of whether the raw components themselves originated from the country. With tensions already elevated over issues like Taiwan and advanced semiconductor production, the tariff announcement could set the stage for further economic friction between the world's two largest economies absent a negotiated resolution on tech trade.

Global PC shipments grew around 3% YoY in Q1 2024 after eight consecutive quarters of declines due to demand slowdown and inventory correction, according to the latest data from Counterpoint Research. The shipment growth in Q1 2024 came on a relatively low base in Q1 2023. The coming quarters of 2024 will see sequential shipment growth, resulting in 3% YoY growth for the full year, largely driven by AI PC momentum, shipment recovery across different sectors, and a fresh replacement cycle.

Lenovo's PC shipments were up 8% in Q1 2024 off an easy comparison from last year. The brand managed to reclaim its 24% share in the market, compared to 23% in Q1 2023. HP and Dell, with market shares of 21% and 16% respectively, remained flattish, waiting for North America to drive shipment growth in the coming quarters. Apple's shipment performance was also resilient, with the 2% growth mainly supported by M3 base models.

The U.S. Department of Commerce today announced $1.5 billion in planned direct funding for GlobalFoundries (Nasdaq: GFS) (GF) as part of the U.S. CHIPS and Science Act. This investment will enable GF to expand and create new manufacturing capacity and capabilities to securely produce more essential chips for automotive, IoT, aerospace, defense, and other vital markets.

New York-headquartered GF, celebrating its 15th year of operations, is the only U.S.-based pure play foundry with a global manufacturing footprint including facilities in the U.S., Europe, and Singapore. GF is the first semiconductor pure play foundry to receive a major award (over $1.5 billion) from the CHIPS and Science Act, designed to strengthen American semiconductor manufacturing, supply chains and national security. The proposed funding will support three GF projects:

Today marks the debut of five updated models in the popular ASUS Vivobook Classic series of everyday laptops, led by the ASUS Vivobook 14 X1404 and X1405, ASUS Vivobook 15 X1504, ASUS Vivobook 16 X1605 and ASUS Vivobook 17 X1704.

Smooth performance is delivered by up to the latest Intel Core 7 processors (Series 1) with 16 GB RAM and up to a 1 TB SSD. Quiet and efficient cooling is provided by the dual-vented cooling system with an IceBlade fan and up to two heat pipes. The long-lasting up to 50 Wh battery gives users more freedom, and there's up to WiFi 6 for ultrafast connectivity. Other helpful design features include the latest ASUS AI noise-canceling audio technology for crystal-clear communications, and there are bundled productivity-enhancing ASUS apps including GlideX, MyASUS and ScreenXpert.

Mitsui & Co., Ltd., one of Japan's largest business conglomerates, is collaborating with NVIDIA on Tokyo-1—an initiative to supercharge the nation's pharmaceutical leaders with technology, including high-resolution molecular dynamics simulations and generative AI models for drug discovery.

Announced today at the NVIDIA GTC global AI conference, the Tokyo-1 project features an NVIDIA DGX AI supercomputer that will be accessible to Japan's pharma companies and startups. The effort is poised to accelerate Japan's $100 billion pharma industry, the world's third largest following the U.S. and China.

According to TrendForce's latest survey of the server market, many cloud service providers (CSPs) have begun large-scale investments in the kinds of equipment that support artificial intelligence (AI) technologies. This development is in response to the emergence of new applications such as self-driving cars, artificial intelligence of things (AIoT), and edge computing since 2018. TrendForce estimates that in 2022, AI servers that are equipped with general-purpose GPUs (GPGPUs) accounted for almost 1% of annual global server shipments. Moving into 2023, shipments of AI servers are projected to grow by 8% YoY thanks to ChatBot and similar applications generating demand across AI-related fields. Furthermore, shipments of AI servers are forecasted to increase at a CAGR of 10.8% from 2022 to 2026.

The four major North American cloud service providers (CSPs) have made cuts to their server procurement quantities for this year because of economic headwinds and high inflation. Turning to server OEMs such as Dell and HPE, they are observed to have scaled back the production of server motherboards at their ODM partners. Given these developments, TrendForce now projects that global server shipments will grow by just 1.31% YoY to 14.43 million units for 2023. This latest figure is a downward correction from the earlier estimation. The revisions that server OEMs have made to their outlooks on shipments shows that the demand for end products has become much weaker than expected. They also highlight factors such as buyers of enterprise servers imposing a stricter control of their budgets and server OEMs' inventory corrections.

Since 2022, DRAM suppliers have been adjusting their product mixes so as to assign more wafer input to server DRAM products while scaling back the wafer input for mobile DRAM products. This trend is driven by two reasons. First, the demand outlook is bright for the server DRAM segment. Second, the mobile DRAM segment was in significant oversupply during 2022. Moving into 2023, the projections on the growth of smartphone shipments and the increase in the average DRAM content of smartphones remain quite conservative. Therefore, DRAM suppliers intend to keep expanding the share of server DRAM in their product mixes. According to TrendForce's analysis on the distribution of the DRAM industry's total bit output for 2023, server DRAM is estimated to comprise around 37.6%, whereas mobile DRAM is estimated to comprise around 36.8%. Hence, server DRAM will formally surpass mobile DRAM in terms of the portion of the overall supply within this year.

The global PC market has been experiencing a demand downtrend after the cooling down of COVID-19 in 2022. The market saw its shipments decline 15% YoY in 2022 and is expected to see another high single-digit decline in 2023, according to Counterpoint Research's data. However, among all the PC sub-sectors, Arm-based laptops are expected to show a comparatively resilient demand throughout the coming quarters thanks to Apple's success with the MacBook series, increasing ecosystem support and vanishing performance gap with x86 offerings.

Due to the various major events that affected the global economy and politics, the overall demand for consumer electronics made a sharp downward turn in 2022, and global shipments of notebook (laptop) computers began to fall over the quarters. TrendForce's latest analysis finds that global shipments of notebook computers (from ODMs) reached just around 186 million units for 2022, showing a YoY drop of 24.5%. As for 2023, the outlook on the performance of the notebook computer market remains uncertain at this moment. TrendForce expects the YoY decline to moderate to about 7.8%, but shipments are projected to total only 171 million units.

Because market demand was anemic in 4Q22, promotional activities related to the traditional year-end peak season did not generate a lot of sales momentum. Looking at regional markets, notebook brands (PC OEMs) slashed prices in the US and China, but their sales results still did not meet expectations. This development was mainly attributed to factors such as high inflation suppressing consumers' disposable income. Since the sales results for 4Q22 were lackluster, efforts to get rid of the existing stockpile of whole devices might continue through 2Q23. Furthermore, order placements from channels are going to be much more restrained.

TrendForce's latest analysis of the DRAM market finds that the inventory pressure on suppliers remain significant due to the persistently weak demand for consumer electronics. Among the top three DRAM suppliers, only Samsung has seen a slight drop in inventory level thanks to its highly competitive pricing strategy. To prevent DRAM prices as a whole from making another sharp dive, a few suppliers such as Micron have been cutting production. Therefore, the QoQ decline in DRAM prices are projected to shrink to around 13~18% for 1Q23. However, the slump will have yet to reach the bottom at that time. Regarding the QoQ changes in the prices of the major categories of DRAM products for 1Q23, PC DRAM and server DRAM are projected to again register a drop that is near 20%. Conversely, mobile DRAM will experience the smallest price decline because its profit margin is ready the thinnest.

Shipments of monitor panels have fallen over the quarters this year due to various factors that have caused disruptions across the global economy and politics. TrendForce projects that shipments of monitor panels will total just around 158 million pieces for 2022, showing a YoY decline of 8.8%.

According to TrendForce's research on the market for display panels, monitor panels experienced a large downward shipment correction later than did TV and NB panels. For TV panels, the correction phase began in 3Q21. Turning to NB panels, a steep decline in shipments occurred in 2Q22. As for monitor panels, their shipments had not fallen significantly until 3Q22. With the correction taking place at a later time, the eventual rebound will also occur at a more distant time in the future. Since monitor brands are still holding an excessively high level of panel inventory at this moment, shipments of monitor panels are forecasted to drop again by 5.3% QoQ for 1Q23.

AMD's next-generation Radeon RX 7900 high-end graphics cards are set to arrive next week and bring the new RDNA3 GPU architecture to the masses. However, it seems like the customers will have to fight for their purchase as the availability could be scarce at launch, leading to potentially increased prices with low stocks. According to Igor's Lab report, Germany will receive only 3,000 reference MBA (Made By AMD) units of Radeon RX 7900 series cards. In contrast, the rest of the EMEA region will receive only 7,000 MBA units. These numbers are lower than expected, so AIB partners may improve the supply once their designs hit shelves.

On the other hand, mainland China will not receive any MBA units of the new cards as a sign of increasing tension with Taiwan. Of course, AMD's board partners will supply their designs to China, and they are allowed to; however, it seems that only AMD is making a statement here. In addition to supply issues, the launch is rumored to be covered in BIOS issues such as memory leaks and the COVID-19 outbreak affecting production in closed factories. Of course, all of this information should be taken with a grain of salt, and we must wait for the official launch before making any further assumptions.

Based on the latest data and research, TrendForce has further corrected down the projected YoY growth rate of whole server shipments for 2023 to 2.8%. Three factors are behind this revision. First, lead time has started to return to its usual length for most orders related to server components from 3Q23 onward. Seeing this, server OEMs and cloud service providers (CSPs) have also begun to correct the component mismatch issue by lowering demand for items that are in excess while maintaining a constant inventory level for items that are still in tight supply. This development, in turn, has reduced the flow of server orders going to ODMs. Second, the wave of demand that was generated earlier from the effects of the COVID-19 pandemic is dissipating. Hence, expansion activities have cooled off noticeably for services such as video streaming, e-commerce, etc. Among CSPs, Meta, Google, and ByteDance (TikTok) have lowered their server procurement quantities for next year. Lastly, the global economic outlook has remained fairly negative, so companies across most industry sectors have formulated a more conservative expenditure plan and scaled back IT-related spending for next year.

The US Government reinstated over 350 products to a list of exclusions to American import tariffs that were in place in January 2021. This would exclude "printed circuit boards," which is an oversimplified classification of motherboards and graphics cards, along with a range of other PC components that appear like PCBs. The US-China trade-war had caused a curious situation of pre-built computers (such as notebooks, desktops, and workstations) enjoying lower prices than import of their various components. This has had a direct impact on prices of motherboards and graphics cards. Whatever the geopolitical motive behind the move, it should certainly take the pressure off pricing, which have been affected not just by the tariffs, but also component shortages, and spikes in material prices, as well as logistics costs due to the COVID-19 pandemic, as well as the situation in Eastern Europe.

Foxconn, which is a key supplier of Apple products, announced on Monday, that it is suspending production in its Shenzhen plants to comply with a new COVID-19 lockdown in the region. The company is attempting to minimize the impact of this on the supply-chain, by increasing manufacturing output of its plants in other regions, it said in a statement. China is witnessing its highest surge in COVID-19 cases since 2020, and the fresh outbreak is expected to affect manufacturing across the country, as factories comply with cubs set in place by health officials. Besides Foxconn, two other suppliers of Apple, namely Unimicron and Sunflex, have announced a suspension of manufacturing operations in the Shenzhen area.

Much of the globalized world's logistics is still in disarray from the COVID-19 pandemic, and now, Russia has thrown its weight on the matter through its invasion of Ukraine. As the initial offensive played out in the early hours of February 24th, semiconductor industry analysts turned to the situation with a prying eye - how exactly could this deadlock, and the following political and economical sanctions towards Russia, impact the semiconductor industry? The consensus seems to be a favorable one: not that much.

"The semiconductor industry has a diverse set of suppliers of key materials and gases, so we do not believe there are immediate supply disruption risks related to Russia and Ukraine," said John Neuffer, chief executive and president of the Semiconductor Industry Association. That sentiment was echoed by Intel; a company representative told Bloomberg that the company does not anticipate "(...) any impact on our supply chain. Our strategy of having a diverse, global supply chain minimizes our risk of potential local interruptions."

The Entertainment Software Association (ESA) has announced that the 2022 edition of the famous Electronics Entertainment Expo (E3) show will once again occur in a digital venue. The decision has been justified due to the current Omicron infection waves sweeping across most of the world, and while recent studies place Omicron as a less severe variant, its extremely high infection rates should still give decision makers pause.

Interestingly, the ESA still hasn't confirmed the date in which this digital E3 is to take place - something the association always did at the close of each edition. Reports state that the decision to hold a digital-only event for 2022 might have been taken even before the current Omicron surge, and perhaps as early as last year. Should E3 2022 occur in an online format, this will be the second time this happens since the event's first edition back in 1995. In all these years, E3 has only ever been fully canceled in 2020, the year that COVID-19 was declared a pandemic.

DigiTimes, citing sources within the industry, reports that Samsung is mulling a price raise for its own-brand SSDs. The report doesn't put a number or percentage to the prospective price increase, but it also states that Samsung is seemingly moving in the opposite direction of other SSD vendors. Samsung's competition is expected to lower overall pricing by up to 10% in an attempt to increase product attractiveness after facing lower than expected demand.

Samsung is one of the world's largest manufacturers of NAND chips, and enjoys a fully vertical SSD development capability: the company manufactures its own NAND and controller chips, which has led to a strong foothold in both the industry and in consumer's expectations for SSD speed and reliability. It thus seems strange that the company would move in the opposite direction of the remaining industry, especially considering how it benefits from economies of scale and (expectedly) higher product margins than companies that don't manufacture their own NAND. However, Samsung has recently cut its production guidance for both its Xi'an, China NAND factories after local COVID-19 surges forced partial lockdowns. These factories are responsible for around 40% of Samsung's global NAND output - and thus, they also account for around 7% of global NAND production.

Due to the growth of confirmed Omicron cases in the United States, the global leading gaming brand, MSI, officially announced that its on-site CES physical presence in Las Vegas will be canceled for the safety of all employees, customers and fans. The new products for 2022 will be showcased through online events virtually.

"Since December, the rapidly spreading Omicron variant has brought the USA a surge of COVID-19 cases. The health and well-being of our employees, customers and fans are our top priority. Hence, we have decided not to participate in-person at CES 2022 and will join the show virtually with our online product launch," said Sam Chern, MSI Marketing Vice President.

As the global vaccination rate rose, and border restrictions in Europe and North America eased, social activities also began to enter a period of recovery, with the consumer electronics market seemingly ready for the arrival of the traditional peak season in 2H21, according to TrendForce's latest investigations. At the same time, however, the global supply chain was affected by delays in maritime transport, skyrocketing shipping costs, and component shortages, in addition to already-prohibitive price hikes for certain components in 1H21. Given the parallel rise in both material and manufacturing costs, the market for end products has not undergone the expected cyclical upturn in 2H21. Even so, the overall demand for and shipment of smartphones, notebook computers, and monitors experienced QoQ increases in 3Q21, thereby driving up businesses for major OSAT (outsourced semiconductor assembly and test) companies. For 3Q21, the revenues of the top 10 OSAT companies reached US$8.89 billion, a 31.6% YoY increase.

Kingston Digital, Inc., the Flash memory affiliate of Kingston Technology Company, Inc., a world leader in memory products and technology solutions, today announced TrendForce has named it as the number one supplier of SSDs in the channel for all of 2020. According to TrendForce, Kingston accounted for a whopping 27 percent of the 111.5 million units shipped in 2020.

With the emergence of COVID-19 in 2020, TrendForce reported a 15% YoY decrease in annual SSD shipments to the channel and severe delays in manufacturing and logistics resulting in a sudden decline in order volumes. Yet, findings show through Kingston's global strategy for sourcing components, the company was well ahead of its competitors considering a global pandemic and looming chip shortage. The results reinforced Kingston as the clear leader in SSD production, as the second-place supplier accounted for only 8 percent of the total channel market. As a category, third-party suppliers (non-semiconductor) SSD makers accounted for 35% of the total shipments in 2020.

The emergence of the COVID-19 pandemic led to severe delays in manufacturing and logistics. In particular, governments worldwide began implementing border restrictions in 2Q20 to combat the ongoing health crisis, leading to a sudden decline in order volumes for channel-market SSDs, according to TrendForce's latest investigations. Annual shipment of SSDs to the channel (retail) market reached 111.5 million units in 2020, a 15% YoY decrease. In terms of market share by shipment, Kingston, ADATA, and Kimtigo once again occupied the top three spots, respectively.

Looking at the channel market for SSDs as a whole, NAND Flash suppliers (among which Samsung possessed the largest market share) accounted for around 35% of the total shipments in 2020, while SSD module makers accounted for the other 65%. The top 10 module makers accounted for 71% of channel-market SSD shipments from all SSD module makers. Taken together, these figures show that the market remained relatively oligopolistic in 2020. However, it should be noted that TrendForce's ranking of SSD module makers for 2020 takes account of only products bound for the channel market and under brands owned by the module makers themselves; NAND Flash suppliers were therefore excluded from the top 10 ranking.

Intel Corporation today reported third-quarter 2021 financial results. "Q3 shone an even greater spotlight on the global demand for semiconductors, where Intel has the unique breadth and scale to lead. Our focus on execution continued as we started delivering on our IDM 2.0 commitments. We broke ground on new fabs, shared our accelerated path to regain process performance leadership, and unveiled our most dramatic architectural innovations in a decade. We also announced major customer wins across every part of our business," said Pat Gelsinger, Intel CEO. "We are still in the early stages of our journey, but I see the enormous opportunity ahead, and I couldn't be prouder of the progress we are making towards that opportunity."

In the third quarter, the company generated $9.9 billion in cash from operations and paid dividends of $1.4 billion. Intel CFO George Davis announced plans to retire from Intel in May 2022. He will continue to serve in his current role while Intel conducts a search for a new CFO and until his successor is appointed. Third-quarter revenue was led by strong recovery in the Enterprise portion of DCG and in IOTG, which saw higher demand amid recovery from the economic impacts of COVID-19. The Client Computing Group (CCG) was down due to lower notebook volumes due to industry-wide component shortages, and on lower adjacent revenue, partially offset by higher average selling prices (ASPs) and strength in desktop.

Samsung Electronics, a world leader in advanced semiconductor technology, today unveiled plans for continuous process technology migration to 3- and 2-nanometer (nm) based on the company's Gate-All-Around (GAA) transistor structure at its 5th annual Samsung Foundry Forum (SFF) 2021. With a theme of "Adding One More Dimension," the multi-day virtual event is expected to draw over 2,000 global customers and partners. At this year's event, Samsung will share its vision to bolster its leadership in the rapidly evolving foundry market by taking each respective part of foundry business to the next level: process technology, manufacturing operations, and foundry services.

"We will increase our overall production capacity and lead the most advanced technologies while taking silicon scaling a step further and continuing technological innovation by application," said Dr. Siyoung Choi, President and Head of Foundry Business at Samsung Electronics. "Amid further digitalization prompted by the COVID-19 pandemic, our customers and partners will discover the limitless potential of silicon implementation for delivering the right technology at the right time."