AMD revealed today that it anticipates charges of up to $800 million following the Trump administration's latest crackdown on exports of advanced processors to China. The company confirmed that these new rules affect its MI308 product line. The U.S. Commerce Department declared on Tuesday that it was putting in place new licensing requirements impacting several high-performance chips, including NVIDIA's H20, AMD's MI308, and similar products. This regulatory move comes at a high price for AMD, as China stands as its second-biggest market in 2024 with about $6.23 billion in revenue, over 24% of the company's total sales.

AMD's regulatory filing reveals that the company faces $800 million in charges due to inventory issues, purchase commitments, and needed reserves. AMD "expects to apply for licenses but there is no assurance that licenses will be granted,". This uncertainty grows when we consider what Jefferies analysts pointed out on Tuesday: the U.S. has never agreed on licenses for graphics processor unit shipments to China. This news comes right after NVIDIA's announcement that it would take $5.5 billion in charges because of the same export rules. As a result, AMD and NVIDIA stocks were dropping by more than 5%.

President Trump's administration has announced that NVIDIA's H20 AI chip will require a special export license for any shipment to China, Hong Kong, or Macau for the indefinite future. The Commerce Department delivered the news to NVIDIA on April 14, 2025, citing worries that the H20 could be redirected into Chinese supercomputers with potential military applications. NVIDIA designed the H20 specifically to comply with earlier US curbs by scaling back performance from its flagship H100 model. The H20 features 96 GB of HBM3 memory running at up to 4.0 TB/s, delivers roughly 296 TeraFLOPS of mixed‑precision compute power, and offers a performance density of about 2.9 TeraFLOPS per die. Its single‑precision (FP32) throughput is around 74 TeraFLOPS, with FP16 performance reaching approximately 148 TeraFLOPS. In a regulatory filing on April 15, NVIDIA warned that it will record about $5.5 billion in writedowns this quarter related to H20 inventory and purchase commitments now blocked by the license requirement.

Shares of NVIDIA fell roughly 6 percent in after‑hours trading on April 15, triggering a wider sell‑off in semiconductor stocks from the US to Japan. South Korea's Samsung and SK Hynix each slid about 3 percent, while AMD also dropped on concerns about broader chip‑export curbs. Analysts at Bloomberg Intelligence project that, if the restrictions persist, NVIDIA's China‑related data center revenue could shrink to low‑ or mid‑single digits as a percentage of total sales, down from roughly 13 percent in fiscal 2024. Chinese AI players such as Huawei stand to gain as customers seek alternative inference accelerators. Commerce Secretary Howard Lutnick has pledged to maintain a tough stance on chip exports to China even as NVIDIA commits up to $500 billion in US AI infrastructure investments over the next four years. Everyone is now watching closely to see whether any H20 export licenses are approved and how long the ban might remain in place.

President Trump announced late Friday that a range of electronics imported from China will not be hit by his new reciprocal tariffs, according to a US Customs and Border Protection notice. The exemption, which applies to items arriving in the United States or leaving bonded warehouses on or after April 5, covers smartphones, computer monitors, semiconductors, various electronic parts, and, importantly, high-performance GPUs. Tech companies were bracing for big cost increases. Apple, for example, assembles about 90 percent of its iPhones in China and holds roughly six weeks of inventory in US warehouses. Without this exemption, consumers would likely have seen higher prices once that stock ran out. Framework, the modular laptop maker, has already paused US sales of some Laptop 13 models and discounted others by up to 12 percent after a new 10 percent tariff on Taiwanese parts squeezed their margins.

The GPU market got another break thanks to a clever workaround in the United States-Mexico-Canada Agreement. A research firm SemiAnalysis pointed out that graphics cards made in Taiwan can still enter the US tariff-free if they undergo final assembly in Mexico or Canada. That loophole applies to digital processing units and related circuit boards, which means companies relying on NVIDIA's top-tier accelerators for AI won't see an immediate price jump. White House Press Secretary Karoline Leavitt said these steps are part of a two-pronged plan: offering short-term relief to keep consumer prices down while at the same time pushing major tech firms like Apple, TSMC, and NVIDIA to invest billions in US manufacturing. However, many experts warn that high-precision components are still largely made in Asia, so building up domestic production capacity could take months or even years and may remain more expensive in the meantime.

Update: President Donald Trump posted on Truth Social the following: "There was no Tariff "exception" announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff "bucket."We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations."

While semiconductors are exempt (for now at least) from Trump's tariffs, other components going into our PCs are not. According to Tom's Hardware, which spoke to multiple system integrators, tariffs are about to hike PC costs by at least 20%, with system integrators hurt the most. The tariff package imposes a 54% rate on Chinese goods, 34% on top of earlier tariffs, and significant duties on Taiwan, South Korea, and Vietnam products. These countries supply essential PC components such as SSDs, RAM, cases, and graphics cards. Wallace Santos, CEO of Maingear, highlighted the immediate effects on production: "Tariffs have a direct impact on our cost structure… which we have to pass down to our customers." He further explained that some suppliers have halted production in China, leading to scarcity and escalating costs. Santos estimates that prices for his PCs will rise "20 to 25% as a result of the tariffs."

Other company leaders express concern over the limited alternatives available. Kelt Reeves, CEO of Falcon Northwest, stated, "Sadly the overwhelming majority of PC component manufacturing is not done in the US and never has been. There's no US alternative supplier for most PC parts." Reeves added that even US-based system integrators are "facing skyrocketing costs" due to the tariffs, which are set to worsen an already challenging market situation caused by ongoing GPU shortages. Jon Bach, CEO of Puget Systems, shared his perspective in a recent blog post, noting that his company might absorb some costs to minimize consumer price increases. However, even before the latest tariff updates, Bach predicted a price rise of "20 to 45 percent by June." Critics of the tariffs warn of broader economic issues. Gary Shapiro, CEO of the Consumer Technology Association, condemned the policy as "massive tax hikes on Americans that will drive inflation, kill jobs on Main Street, and may cause a recession for the US economy." With these tariffs taking effect, the PC industry faces a period of adjustment marked by increased costs and significant supply chain challenges.

Yesterday, United States President Donald Trump announced a set of tariffs imposed on US trading partners, imposing a series of 10%+ tariffs on partners, calling it a "Liberation Day." Today, we are calculating how much these tariffs will impact consumers and what is most important at TechPowerUp: semiconductors powering our GPUs and CPUs. According to one of the top investment banks, Goldman Sachs, semiconductors are exempt from the reciprocal tariffs that Trump has imposed on Taiwan. However, the semiconductor manufacturing equipment used by makers like TSMC is not exempt and is expected to be hit with the 32% tariffs. This is only half of what Taiwan imposes on imports of US-made goods. For TSMC, the number one maker of GPUs and CPUs, tariffs can be tricky to navigate. While its existing manufacturing facilities use equipment sourced from Dutch ASML and a few US companies like Lam Research and KLA Corporation, it shouldn't be a problem to ship new silicon to the US.

However, if TSMC wants to expand its manufacturing facilities in any country that is not the US, it will have to deal with 32% tariffs on US-sourced silicon manufacturing equipment. For EU-based ASML, things are looking a little different. If over 20% of the equipment is made up of US content, a tariff exemption might apply, potentially reducing import costs. If more than one-fifth of a product's components or value originates from US sources, the equipment may be eligible for tariff relief. ASML's machines include some US components, so determining whether these machines meet the 20% threshold is crucial. If they do, the tariff exemption could help lower costs associated with importing these advanced machines, reaching up to $380 million. For non-US-injected goods, EU entities are subject to 20% tariffs.

TSMC is still considering a strategic joint venture to operate Intel's manufacturing capacity, according to four sources close to Reuters that are familiar with the discussions. The proposed arrangement would limit TSMC's ownership to less than 50% and potentially distribute stakes to major American chip designers, including AMD, Broadcom, NVIDIA, and Qualcomm. The initiative emerged following direct intervention from the Trump administration, which has prioritized revitalizing domestic semiconductor manufacturing while maintaining American control of critical technology infrastructure. Under the proposed framework, Intel would spin off its Intel Foundry division, with TSMC acquiring a minority stake and bringing in partner companies as co-investors.

Apple, TSMC's largest customer, is absent from these preliminary discussions, suggesting careful strategic positioning within the competitive ecosystem—however, significant technical and operational challenges are facing the potential joint venture. Intel's manufacturing and real estate assets are valued at approximately $108 billion, requiring substantial capital commitments from prospective partners. More fundamentally, the technological integration presents massive obstacles, as Intel and TSMC utilize fundamentally different manufacturing processes with distinct equipment configurations and material requirements. However, the complex negotiations remain in the early stages, with significant technical, financial, and regulatory hurdles to overcome before any formal agreement materializes. Intel is still not giving the clear green light to spin off rumors.

In an interview with The Telegraph, Acer CEO and chairman Jason Chen said that its products made in the PRC will see a price increase of 10 percent as direct results of the new tariffs that the US will levy on electronics. However, Mr Chen is quoted as saying "We think 10 percent probably will be the default price increase because of the import tax." which doesn't mean it will be exactly 10 percent, as it might vary a bit between product segments. That said, what's clear is that Acer and most likely every other company that manufactures hardware in the PRC aren't going to eat any of the tariffs, as the companies appear to be shifting the burden of the new tariffs straight over to the end consumers. Mr Chen also suggested that some companies might be increasing their pricing by more than 10 percent.

The price increase will happen over time, as the new tariffs won't affect products that have left the PRC before the end of February. Alongside Acer, which is the fifth-biggest computer brand in the US market, it's likely that Dell, HP and Lenovo, as well as Apple, are going to hike their prices by the same 10 percent or more. Acer moved the assembly of its desktop computers out of the PRC during Trump's previous term, when a 25 percent tariff was imposed. Now Acer is looking at moving at least some additional parts of its productions out of the PRC and the US is on the table for some of its products. Considering that some 80 percent of all laptops imported to the US are made in the PRC, the Consumer Trade Association is expecting the new tariffs to cost US consumers some US$143 billion, which it assumes will lead to a slump in sales of consumer electronics.

TSMC is set to hold its inaugural board meeting on US soil on February 12—a strategic decision influenced by potential reciprocal tariffs outlined by the US President Donald Trump. As the company's first wafer fabrication facility in Arizona is in mass production using its 4 nm process, the US board meeting marks a first in TSMC's global expansion, where the company is holding a board meeting outside of Taiwan for the first time in its four-decade history. The board gathering, which will bring together directors from its Taiwan headquarters and overseas operational sites, comes amid concerns over possible US tariff measures targeting key trade partners, including Taiwan. Trump recently hinted at imposing tariffs on semiconductor products, which could directly affects TSMC's business operations.

Among the attendees will be Liu Jingqing, a director representing Taiwan's National Development Fund Management Committee, the company's largest shareholder holding 1.65 billion shares. Liu, who left for the United States on February 8, is expected to return to Taiwan immediately after the meeting, ensuring the board remains aligned with upcoming legislative sessions. During the meeting, the board will review the financial results for the fourth quarter and decide on cash dividends for 2024. Despite uncertainties over US tariffs, TSMC continues to expand its US investments. Its second and third fabs in Arizona, expected to employ more advanced processes such as 3 nm and 2 nm, show the company's long-term commitment to the American market while it continues advancing process and packaging capacity in Taiwan. TSMC Chairman C.C. Wei stressed that advancing mass production in Taiwan remains critical even while expanding US operations.

ASRock told PCMag it plans to move some of its production out of China. "We need time to shift the manufacturing of GPU cards and other products hit by the 10% tariff to different countries," they said. This week, the White House put a 10% tax on all Chinese imports to the US, this tax applies on top of any other taxes the US already had on certain Chinese goods. ASRock also said, "While we move from making things in China to making them elsewhere, we might take on some of the cost and raise prices a bit to show the higher costs." But they added, "It's not easy to raise prices because the market is still very competitive." ASRock also told PCMag that it already pays a 25% tax on its power supplies made in China. "For items like PSUs that already have an extra 25% tax, makers will keep doing what they've been doing," the company said.

If Trump administration doesn't follow through with his threats of huge tariffs against Taiwan, the PC gaming industry will primarily feel the effects on companies like ASRock and MSI (which makes its motherboards in Shenzhen, China). These are the component and peripheral makers that have part or all of their manufacturing processes in China. ASRock's announcement isn't a huge surprise, as we saw hints of this trend in late 2024 when PC Partner (second-biggest graphics card maker, producing PCBs for brands such as Inno3D and Zotac) moved its headquarters from China to Singapore. It will be no surprise if other top-tier brands such as GIGABYTE, MSI, and ASUS take similar actions sooner or later.

Today, Bloomberg reported that the US government under Trump administration is probing whether Chinese AI company DeepSeek circumvented export restrictions to acquire advanced NVIDIA GPUs through Singaporean intermediaries. The investigation follows concerns that DeepSeek's AI model, R1—reportedly rivaling leading systems from OpenAI and Google—may have been trained using restricted hardware that is blocked from exporting to China. Singapore's role in NVIDIA's global sales has surged, with the nation accounting for 22% of the chipmaker's revenue in Q3 FY2025, up from 9% in Q3 FY2023. This spike coincides with tightened US export controls on AI chips to China, prompting speculation that Singapore serves as a pipe for Chinese firms to access high-end GPUs like the H100, which cannot be sold directly to China.

DeepSeek has not disclosed hardware details for R1 but revealed its earlier V3 model was trained using 2,048 H800 GPUs (2.8 million GPU hours), achieving efficiency surpassing Meta's Llama 3, which required 30.8 million GPU hours. Analysts suggest R1's performance implies even more powerful infrastructure, potentially involving restricted chips. US authorities, including the White House and FBI, are examining whether third parties in Singapore facilitated the transfer of controlled GPUs to DeepSeek. A well-known semiconductor analyst firm, SemiAnalysis, believes that DeepSeek acquired around 50,000 NVIDIA Hopper GPUs, which includes a mix of H100, H800, and H20. NVIDIA clarified that its reported Singapore revenue reflects "bill to" customer locations, not final destinations, stating most products are routed to the US or Western markets.

The United States, currently led by the Trump administration, could be preparing a surprise package to its close silicon ally—Taiwan. During a House GOP issues conference in Florida, US President Donald Trump announced that he would impose 25% to 100% tariffs on Taiwan-made chips, including the world's leading silicon manufacturer, TSMC. Trump addressed the conference, saying, "In the very near future, we are going to be placing tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to return production of these essential goods to the United States. They left us and went to Taiwan; we want them to come back. We do not want to give them billions of dollars like this ridiculous program that Biden has given everybody billions of dollars. They already have billions of dollars. […] They did not need money. They needed an incentive. And the incentive is going to be they [do not want to] pay a 25%, 50% or even a 100% tax."

The issue for TSMC is its massive reliance on US companies to drive revenue. The majority of its cutting-edge silicon is going to only a handful of companies, including Apple, NVIDIA, Qualcomm, and Broadcom. With tariffs, the supply chain economics, especially in the world of semiconductors, will break. TSMC's most significant export country is the US, and US companies with trillions of US Dollars of market capitalization rely on Taiwanese silicon. As a result, TSMC will most likely raise its wafer prices, with results trickling down to US companies raising their product prices with additional price hikes. TSMC plans to bring its advanced manufacturing on American soil, but given that these tariffs might break the economic model it currently operates under, it may need to happen sooner. Taiwan-based silicon giant has planned to leave US facilities trailing behind by a generation or two of advanced manufacturing, while domestic facilities produce the newest nodes. If Trump decides to go through tariffs, TSMC could make additional changes to its US-based manufacturing plans.

On Tuesday, the newly inaugurated United States president, Donald Trump, announced a massive AI infrastructure expansion in the US called Stargate Project. Stargate is an idea that brings private investments across the US land, with up to 500 billion US dollars committed to the project over the next four years. This is single-handedly one of the most significant infrastructure projects ever planned, and this time it is all about AI and data centers. The initial phase involves deploying 100 billion US Dollars immediately, while the remaining 400 billion will be deployed periodically over the next four years. OpenAI and SoftBank are leading this project, with Softbank's CEO Masayoshi Son being the project's chairman. Major equity partners include SoftBank, OpenAI, Oracle, and MGX. Major technology partners who will supply the know-how, planning, software, and hardware are Arm, Microsoft, NVIDIA, Oracle, and OpenAI.

Leading the entire operation will be up to OpenAI, who is gaining operational lead in the project, while Softbank oversees financial planning. Interestingly, the buildout has already begun. OpenAI is currently exploring a few sites in Abilene, Texas, which includes ten 500,000 sq. ft. data centers with 20 planned for the future. Interestingly, the infrastructure expansion will most likely be present in every US state that can provide ample land and power capacity. OpenAI is looking for partners to help with the massive data centers' power, land, and construction. The most significant impact of this project will be on the power grid, which will require additional buildout and implementation of small nuclear reactors running locally nearby to satisfy the power draw from hundreds of thousands and even millions of GPUs. OpenAI is praising NVIDIA for its almost decade-long partnership, meaning that most GPUs will likely be NVIDIA-sourced.

NVIDIA and AMD have launched an acceleration of their next-generation GPU production and shipping schedules, racing to beat impending Trump administration tariffs that could inflate prices by up to 60%. The companies are prioritizing delivery to US warehouses before January 20, when the new trade measures are supposed to take effect. This aggressive timeline represents a significant departure from traditional GPU rollout strategies, which typically maintain controlled production rates during initial manufacturing phases. The urgent push aims to protect both consumer prices and profit margins, with manufacturers breaking from their usual conservative supply approach to ensure maximum inventory reaches American shores before the tariff deadline. NVIDIA is boosting shipments of its next-gen GeForce RTX 50 series, while AMD is busy with Radeon RX 9000 series.

The impact of these tariffs could reshape the GPU market prices, with flagship products like NVIDIA's GeForce RTX 5090 potentially seeing price increases from the rumored $1,799 to approximately $2,500. Following similar moves by Microsoft, Dell, and HP, this strategic rush to beat tariff implementation shows the technology sector's response to evolving trade policies. These price hikes could trigger a surge in the secondary GPU market as consumers seek more affordable options. While manufacturers work to shield customers from immediate price impacts through pre-tariff stockpiling, the long-term outlook for GPU pricing and availability remains uncertain as the industry adapts to these new trade dynamics. Increasing the prices dramatically will result in a rapid fall in demand, so the supply chain is working overtime to assess and address the potential tariff issue.

Taiwanese political officials have agreed to discuss transferring TSMC's advanced 2 nm chip technology to allied democratic nations, but only after establishing the main mass production launch in late 2025 in Taiwan. This new stance comes amid growing international pressure and recent comments from upcoming US president Donald Trump about semiconductor manufacturing. The announcement by National Science and Technology Council Minister Cheng-Wen Wu marks a notable departure from earlier statements by Economic Affairs Minister J.W. Kuo, who had previously emphasized legal restrictions on transferring leading-edge process technology overseas. Interestingly, these different positions aren't so different from one point: timeline of node deployments. As TSMC produces latest nodes in Taiwan, overseas production will lag by a generation or two.

TSMC plans to implement its 2 nm technology in US facilities by 2030. The company's Arizona facility, Fab 21, will begin with less advanced N4 and N5 processes in early 2025 and progress to 3 nm technology by 2028. However, this timeline could face pressure for acceleration, mainly if new trade policies are implemented. Industry analyst Dan Nystedt points out significant challenges in transferring advanced chip production. Integrating research and development with manufacturing processes in Taiwan provides crucial advantages for initial production ramps, making simultaneous mass production launches in multiple locations technically challenging. Simply put, there aren't enough capable engineers, scientists, and factory workers capable of doing what TSMC accomplishes in Taiwan.

TSMC has reportedly postponed the opening ceremony of its Arizona Fab 21 facility, initially planned for December 6, amidst the changing US political landscape. The ceremony is now expected to take place after President-elect Donald Trump's inauguration in early 2025, showing that the chipmaker is taking a cautious approach to geopolitical shifts. The delay comes as TSMC finds itself at the intersection of global semiconductor politics. The company has invested heavily in its Arizona operations (estimated at $65 billion total), with Wang Yinglang, deputy general manager of wafer factory operations, leading the project. Despite initial skepticism, Wang's team has maintained an ambitious timeline, with mass production scheduled to begin in the first half of 2025.

Rumors also suggest that TSMC's decision stems from broader concerns about the incoming administration's semiconductor policies. However, TSMC maintains a strong position due to its unmatched technological capabilities, particularly in advanced manufacturing processes, which competitors like Intel and Samsung struggled to achieve. The Arizona facility represents a crucial piece of TSMC's global expansion strategy, which includes new factories in Japan and Germany. While the company faces challenges, including labor issues and rising costs in the US, its strategic importance to the global semiconductor supply chain remains unchanged. The only thing that is changing is the timeline of the opening ceremony, while high-volume production stays on track.

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.

CaseLabs, one of the OG brands in the PC gaming community, went bankrupt in 2018 amid the supposed Trump tariffs, which pushed aluminium prices over 80% higher. With the company using aluminium as its exclusive material for cases, the high pricing structure of the source material forced the company to close. However, recently we have heard some rumors of CaseLabs making a comeback with the new ownership. Today, it seems like the new owner posted an online survey to get a better insight into the brand's legacy and just how valuable it is was to consumers.

Many will recall that CaseLabs made very modular cases designed for extreme water cooling. Many developed powerful rigs inside CaseLabs cases, with many still in use, thanks to the quality of the product. The new owner is Emil Rytterstedt, according to sources close to Gamers Nexus. And today, we assume that it is precisely this person that posted an online survey to get a better grasp of the community. You can check out the survey here and enter your thoughts on the brand.

The US Government, specifically the Department of Defense (DoD), has under the Trump administration blacklisted the Chinese smartphone maker Xiaomi. This was a way to impose sanctions on the Chinese company as it was believed that Xiaomi was involved with the Chinese military, thus the Trump organization had problems having US investors taking a share of it. However, the company has issued legal proceedings against the US government for making such claims, and now the US govt., administrated by the President Joe Biden, has reached an agreement with the company. Xiaomi managed to prove that it is not owned or controlled by the Chinese military, so the US DoD has removed the company from its blacklist.

This has caused the company shares to soar on the Hong Kong stock exchange by as much as 6.7% after the news appeared. "The Biden Administration is deeply concerned about potential U.S. investments in companies linked to the Chinese military and fully committed to keeping up pressure on such companies", said Emily Horne, a spokeswoman for the White House National Security Council.

TSMC is one of the world's biggest semiconductor manufacturers, and the company is currently the leading provider of the newest technologies like 5 nm and 3 nm, along with advanced packaging. So far, TSMC's biggest customers have included Apple, NVIDIA, AMD, etc., where the company has mainly produced chips for mobile phones and PCs/Servers. However, Taiwan's Economics Ministry has announced that they have spoken to TSMC and have reached an agreement that the company will be putting away some additional capacity for the automotive industry, specifically for the production of automotive chips. The reason for this push is the increasing shortage of semiconductors for automakers, experienced due to the Trump administration sanctions against key Chinese chip factories.

TSMC has stated that "Other than continuously maximizing utilization of our existing capacity, Dr. Wei also confirmed in our investors' conference that we are working with customers closely and moving some of their mature nodes to more advanced nodes, where we have a better capacity to support them". The company also states that their capacities are fully utilized for now, however, TSMC has ensured ministry that "if production can be increased by optimizing production capacity, it will cooperate with the government to regard automotive chips as a primary application." That means that TSMC will not decrease any existing capacity, but rather just evaluate any increased capacity for automotive chip production.

Yesterday, we have reported that ASUS is officially increasing the prices of their graphics cards and motherboards, due to increased component and logistics costs. What the company meant by that was not exactly clear to everyone, as it looked like the company has adjusted to the current market prices exceeding the MSRP of components like graphics cards. The GPUs are today selling at much higher prices compared to the original MSRP and it is representing a real problem for consumers. Today, we get to see what is the underlying problem behind the announcement we saw yesterday and if we are going to see more of that in the close future.

According to the New York Times, the Chinese import tariff exemptions have expired with the arrival of a new year (2021) and we can expect the tariffs to start from 7.5%-25%, which will massively increase component costs. A Reddit user has noted that MSRP will increase about $80 for every major GPU manufacturer like ASUS, GIGABYTE, PNY, Zotac, etc. so we are expecting MSRP adjustment from other companies to follow just like ASUS did. The import tariff exemptions are also supposed to increase MSRPs of other PC components like motherboards, SSDs, PSUs, cases... everything without exemption. As a product of a trade war between China and the Trump administration, it remains a question will these tariffs get easier shortly, so consumers can afford their desired components.

The Trump administration has reportedly been considering adding to Chinese chipmaker SMIC (Semiconductor Manufacturing International Corporation) to the trade blacklist of Chinese companies, restricting the company of doing any business with the United States and/or with any of its affiliates. The original report comes from Reuters and it states that the move came from Pentagon after considering whatever SMIC should be placed on a blacklist. It is so far unclear if other US agencies support the decision, however, it should be public in the near future. The company has received the news on Saturday and it was "in complete shock" about the decision. Shortly after the news broke, SMIC stock has fallen as much as 15% amid the possible blacklist. If SMIC would like to continue working with American suppliers, it would need to seek a difficult-to-obtain license from the government.

Update 28th September: The United States government hasofficially imposed sanctions on the Chinese chipmaker SMIC. The company is now under US sanctions and is placed on a trade blacklist.

Ever since the Trump administration imposed sanctions against Huawei to stop it from purchasing parts from third-party vendors to bypass the ban announced back in May, some vendors continued to supply the company. So it seems like some Korean manufacturers will be joining the doings of the US government, and apply restrictions to Huawei. According to the reports of South Korean media outlets, Samsung Electronics and SK Hynix will be joining the efforts of the US government and the Trump administration to impose sanctions against Chinese technology giant - Huawei.

It is reported that on September 15th, both Samsung and SK Hynix will stop any shipments to Huawei, where Samsung already stopped efforts for creating any new shipments. SK Hynix is said to continue shipping DRAM and NAND Flash products until September 14th, a day before the new sanctions are applied. Until the 14th, Huawei will receive some additional chips from SK Hynix. And it is exactly SK Hynix who is said to be a big loser here. It is estimated that 41.2% of SK Hynix's H1 2020 revenue came from China, most of which was memory purchased for Huawei phones and tablets. If the company loses Huawei as a customer, it would mean that the revenue numbers will be notably lower.

In the ave of the news that Trump administration has forbidden TSMC to have Huawei as its customer, Huawei seems to be exploring new options for sourcing the best performing mobile processors. As the company has turned to the Chinese SMIC semiconductor factory, it still needs a backup plan in the case of Chinese semiconductor manufacturing flops. So to combat US sanctions, Huawei will use already made chips form the US company - Qualcomm. By sourcing the processors from Qualcomm, Huawei is losing some benefits of customs design like better system integration, however, it will gain quite powerful mobile processors. As Qualcomm is known for providing the fastest processors for Android smartphones, Huawei has ensured that it remains competitive. Qualcomm is reportedly now negotiating with the US government about delivering the chips to Huawei, and if it is allowed, Qualcomm will gain a big customer.

Today we are in for an interesting rumor. According to industry sources of Coreteks, Samsung is rumored to be preparing investment in GlobalFoundries manufacturing facilities. In the latest ave of Asian foundries getting away from China and getting close to EU and US soils, Samsung is the latest one to join the list. First, let's explain the situation. The Trump administration has been pushing TSMC to drop all orders from Huawei, and TSMC did it. That way, Huawei Technologies has lost a major chip supplier which enabled the company a competitive edge. Now, the company must turn to Chinese manufacturers and it can't use any US-made product.

Given that GlobalFoundries is a company headquartered in the US (Santa Clara, California), the company is an American corporation, which has fabs in the US, as well as in Europe. It is truly a global foundry system. Samsung, a Korean semiconductor manufacturer, has been rumored to invest in GlobalFoundries Dresden fab, located in Germany. The company will help GlobalFoundries expand its power supply capacity from 63 MegaWatts to 100 MegaWatts. The proposed expansion of GlobalFoundries Dresden fab would be funded exclusively by Samsung. So why is Samsung doing this? The answer to this question is pretty simple - to get closer to western markets. Even if GlobalFoundries has foundries all over the world, it is a US company at its core. So Samsung hopes that from this investment, it can get closer to US soil and gain some new customers in the future. After all, Samsung plans to become the world's biggest semiconductor manufacturer by 2030, the position currently held by its rival TSMC. Below you can check out the expansion plan illustrated by Coreteks:

TSMC, as one of the largest silicon manufacturers in the world, has been subject to pressure from the Trump administration to build a Fab and manufacture silicon on US soil. The reasoning behind this is that the US government could order chips that are supposed to be used in military applications. For security reasons, they need to be manufactured on US grounds and "checked" by the US government. However, it seems like a Taiwanese company has no concrete plans to realize the building of the US Fab.

Thanks to the report of DigiTimes, TSMC has confirmed that they have resisted requests from the US government, and will not build a Fab on US soil for the government. They haven't dismissed the possibility of building one or silicon manufacturing facilities in the US completely. TSMC chairman Mark Liu has told DigiTimes previously that if the company wants to build a US Fab, it will do so because of consumer demand, not the government demand. And that is understandable. It is much easier to work with regular customers compared to the US government which would force a company to go through rigorous security levels to deliver chips.