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.

Popular router manufacturer TP-Link is being investigated by US authorities over an alleged connection to cyberattacks emanating from the PRC. According to the Wall Street Journal, the Commerce, Justice and Defense departments are all investigating the company and the Commerce Department has gone as far as issuing a subpoena to TP-Link. The WSJ states that TP-Link holds close to a 65 percent market share in the US consumer router market, which puts the company in a unique market position.

The end results of the investigations, assuming either US authority finds any wrongdoings, could lead to TP-Link being banned from selling its routers in the US. A spokeswoman for TP-Link in the US issued the following statement to the WSJ "We welcome any opportunities to engage with the U.S. government to demonstrate that our security practices are fully in line with industry security standards, and to demonstrate our ongoing commitment to the U.S. market, U.S. consumers, and addressing U.S. national security risks".

Mozilla says that "many sites do not respect" Do Not Track requests, as they rely on voluntary compliance, adding that the feature may actually harm user privacy—likely alluding to the fact that it makes it easier for sites to fingerprint and track you. As such, as of Firefox version 135, Mozilla will disable the Do Not Track feature. As a replacement for the feature, Mozilla recommends using the more advanced "Tell websites not to sell or share my data" toggle built into Global Privacy Control, which it says is more widely respected and backed by law in some regions.

This is also just the latest in a long line of changes to both Firefox and web privacy, at large. For one, Google recently completely removed third-party cookies from its Chrome browser—a move it claims is in support of user privacy but has been widely criticized for putting Google in something of a monopoly position when it comes to tracking the data of Chrome users. Overall, the community feedback on Reddit seems to be either positive or indifferent, although one criticism of the new reliance on Global Privacy Control is that GPC doesn't block Google Analytics tracking requests, although the reasoning behind leaving Google Analytics in-tact is that many sites don't function correctly when it is blocked or disabled.

Refurbished Steam Decks have been a more affordable way to get into the handheld gaming PC space for a while now, but Valve just announced that it has now added the OLED version of the Steam Deck to its official refurbished device line-up. Now, you can get your hands on a Steam Deck OLED for as little as $439 for the 512 GB variant or $519 for the 1 TB version—a healthy $110 and $130 cheaper compared to new units, respectively.

Valve claims the refurbished Steam Deck units—generally customer returns—are functionally identical to new stock units, and it says that there is a strict inspection and testing process for all returned Steam Decks that go into the refurbished program. The only material difference between factory new and refurbished units are "cosmetic defects to be small blemishes or scratches (on the plastic casing, not the screen) generally caused from normal handling of the unit," and these will obviously vary from device to device. In case anything goes wrong, Valve offers the same warranty and support for the refurbished units as it does for its factory new Steam Decks. Unfortunately, the refurbished Steam Deck OLEDs are only available in Canada, the EU, the UK, and the US. Other regions are stuck with regular MSRP Steam Decks or third-party refurbished or used handheld consoles.

The price of a single Bitcoin has officially passed 100,000 US Dollar, making it a new record for the first implementation of digital cryptocurrency. The surge above 100,000 US Dollars comes a few hours after Jerome Powell, Chair of the Federal Reserve of the United States, made comments that "people use Bitcoin as a speculative asset. It's like gold, it's just like gold—only it's virtual, it's digital." At the time of writing, the price of Bitcoin is equivalent to 102,725 US Dollars, with market capitalization of 2.04 trillion US Dollars. Interestingly, at an all time high range, Bitcoin managed to hit the $103,587 point, which is a bit higher than the current price.

At TechPowerUp, we made numerous posts about Bitcoin, and we recall celebrating its jump to $20,000 in 2020. Today's pricing makes it hard to believe just how far the cryptocurrency has managed to go, with large institutions launching their own crypto-tracking ETFs.

The Biden administration is rolling out a third major export control package aimed at China's semiconductor industry, as per a report from Reuters. Estimated to affect 140 companies, including China's chip equipment maker Naura Technology Group, Piotek, and Huawei Technologies, the effort aims to limit China's access to advanced chip making technology. In particular, technology that could be used in military products and artificial intelligence. Important sanctions include export controls to specific chip equipment manufacturers, blocking the delivery of high-performance memory chips and the addition of several semiconductor investment companies to the list of export-restricted entities.

The package expands U.S. regulatory authority through foreign direct product rules. It regulates chip manufacturing equipment manufactured around the world with U.S. technology, Japan and the Netherlands are exempt. However, the rules could have an impact on manufacturers outside U.S. such as those based in Israel, Malaysia, Singapore, South Korea, Taiwan and non-U.S. firms (i.e. ASML) due to the complexity of the technological and supply chain. This continues the Biden administration's strategy to limit China's semiconductor capabilities and comes just weeks before the Trump administration made changes. When asked about US new restrictions Chinese Foreign Ministry spokesperson Lin Jian said at a regular press conference on Monday that such behavior undermines the international economic and trade system, and disrupts global supply chains. China will take measures to protect companies' rights and interests.

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.

When Intel announced the completion of its $7.86 billion CHIPS Act grant from the Biden-Harris administration on Tuesday, we assumed some special terms were tied to the grant. Intel is essentially making a law-abiding promise to the US government that it will not sell its stake in the Intel Foundry unit under any circumstances, even if it manages to become an independent entity. This ensures that Intel is the major voting party in any event. Intel disclosed in a regulatory document that if Intel Foundry becomes its own private entity, Intel must maintain majority control with at least 50.1% ownership to keep its subsidy agreements. Additionally, if Intel Foundry goes public in the future, no single investor would be allowed to acquire more than 35% of shares unless Intel remains the largest shareholder, as this would trigger control-change clauses.

This essentially positions Intel Foundry as too big and too important of a unit to fail, both for Intel and the US government. Given Intel's ties with the US Department of Defense, with up to $3 billion in direct funding under the CHIPS and Science Act for the Secure Enclave program, Intel is vital for providing the US government with advanced semiconductor manufacturing. Strategically, Intel Foundry is the sole US-based company that competes with advanced manufacturing companies such as TSMC and Samsung. Even with TSMC and Samsung driving investments on US soil with advanced fabs, Intel's work with the government requires additional safety and secrecy clearances that only a US firm could provide. In the latest Q3 2024 financial results, Intel Foundry recorded a revenue of $4.4 billion with $5.8 billion in losses. While the operating marking of negative 134.3% seems like a disaster, upcoming quarters will bring it to a positive with more customers and using already developed nodes like 18A.

Apple is reportedly considering diversifying its chip manufacturing strategy with a new silicon manufacturer: Intel. While the upcoming iPhone 17 series, expected next year, will likely feature A19 chips produced by TSMC, a recent rumor from Chinese leaker Fixed Focus Digital hints at a potential switch to Intel for the A20 chipsets powering the 2026 iPhone 18 series. The A18 and A18 Pro chipsets debuted alongside the iPhone 16 series in September 2024, manufactured using TSMC's N3E node. Apple's A19 chips are expected to upgrade to TSMC's N3P node. According to the source, Apple is seeking an Intel 20A node. However, since the A20 node is canceled in favor of 18A, Apple could be an Intel Foundry customer for either 18A or 14A nodes.

Despite the buzz, skepticism persists. Intel has historically struggled with process node transitions and even outsourced production of its Arrow Lake CPUs to TSMC, raising questions about its readiness to deliver on Apple's demands. On the other hand, alternative reports suggest Apple might stick with TSMC's yet-unnamed 2 nm node for the A20, maintaining continuity in its supply chain. As the iPhone 18 series remains two years away, much can change. For now, we are left speculating whether this rumored collaboration with Intel represents a new chapter in Apple's chipset innovation or just a rumor with little substance. If the US government mandates more domestic production, chip designers could be looking at some of the more local manufacturing options, like Intel does on US soil. That could force Apple, NVIDIA, AMD, and Qualcomm to look into Intel's offerings.

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.

Microsoft has long been rumored to be working on a gaming handheld to compete with the likes of Valve's Steam Deck and the ASUS ROG Ally and Lenovo Legion Go, but all we've had to go on until now is unfounded rumors and leaks. Now, Phil Spencer, head of Microsoft Gaming, has confirmed that the software giant is actively working on a Steam Deck challenger, although details are scant, and the timeline is unclear at best.

In a recent interview with Bloomberg, Spencer confirmed that Microsoft is working on an Xbox handheld, although he was very careful to not overpromise or provide any firm release dates, going so far as to confirm that an Xbox handheld is still years away from release. Spencer reiterated in the review that Microsoft was still looking to grow its presence in the gaming industry, which is one of the company's motivations for getting into the gaming handheld market, in the first place. He also confirmed that Microsoft will be pursuing further mergers and acquisitions in the future as part of its gaming push—a move that might not be looked upon favorably by many gamers and regulatory bodies.

Even with billions of US dollars being invested overseas, TSMC cannot legally manufacture its most advanced nodes outside of Taiwan. According to Taiwan's Minister of Economic Affairs J.W. Kuo, "Since Taiwan has regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently." He added, "Although TSMC plans to make 2-nanometer chips [abroad] in the future, its core technology will stay in Taiwan." This provides crucial insight into TSMC's strategic positioning, both in its US expansion plans and in navigating global geopolitical waters, especially with Taiwan being the major hub of silicon innovation. Taiwan's semiconductor industry follows strict regulations regarding overseas production capabilities, requiring companies to maintain their most advanced manufacturing processes within Taiwan.

The company's international expansion strategy includes significant developments in the United States. TSMC's Arizona facilities are central to these plans, with multiple fabs in different stages of development. The initial Arizona facility will begin producing 4 nm chips imminently, while a second facility, scheduled to open in 2028, will manufacture then mature 3 nm and 2 nm chips. A third planned facility aims to produce 2 nm or more sophisticated chips. Meanwhile, Taiwan-based facilities will produce more advanced chips at the same time, with volume production of A-16 chips planned for late 2026, following the rollout of 2 nm chip production in 2025. Furthermore, Taiwan-US semiconductor cooperation will continue regardless of political changes. Taiwan Semiconductor Industry Association (TSIA) Chairman and TSMC Senior Vice President Cliff Hou noted that historical evidence suggests US electoral outcomes have not significantly impacted this technological partnership, though some adjustments may occur.

Anthropic and Palantir Technologies Inc. (NYSE: PLTR) today announced a partnership with Amazon Web Services (AWS) to provide U.S. intelligence and defense agencies access to the Claude 3 and 3.5 family of models on AWS. This partnership allows for an integrated suite of technology to operationalize the use of Claude within Palantir's AI Platform (AIP) while leveraging the security, agility, flexibility, and sustainability benefits provided by AWS.

The partnership facilitates the responsible application of AI, enabling the use of Claude within Palantir's products to support government operations such as processing vast amounts of complex data rapidly, elevating data driven insights, identifying patterns and trends more effectively, streamlining document review and preparation, and helping U.S. officials to make more informed decisions in time-sensitive situations while preserving their decision-making authorities. Claude became accessible within Palantir AIP on AWS earlier this month.

The American semiconductor landscape reached a significant milestone as TSMC's new Arizona manufacturing facility demonstrated remarkable production efficiency, exceeding its Taiwanese counterparts by 4% in yield rates. This achievement, revealed at a recent industry webinar by the company's US division chief, represents a major step forward in America's push to strengthen domestic chip manufacturing capabilities. Since initiating its 4 nm node production operations this spring, the Phoenix-based facility has demonstrated impressive technical proficiency, achieving production standards that match and surpass TSMC's established Taiwanese facilities. The project, backed by substantial federal support, including $11.6 billion in combined grants and loans plus significant tax incentives, aims to establish three cutting-edge manufacturing plants in Arizona.

The company's global leadership praised the facility's performance, noting its strategic importance in demonstrating TSMC's ability to maintain exceptional manufacturing standards across international locations. This success carries particular weight given the project's earlier hurdles, which included workforce challenges and timeline adjustments that shifted the entire production schedule by approximately one year. This development gains additional significance against industry-wide challenges, particularly as competitors like Intel and Samsung face operational and financial obstacles. The semiconductor giant's plans now extend to potential further expansion, with the Phoenix site capable of hosting up to six manufacturing facilities. Future growth prospects could be enhanced by proposed additional government initiatives supporting domestic chip production.

In an interview with Reviews.org, Valve's designers Lawrence Yang and Yazan Aldehayyat discussed the Steam Deck. They talked about the console's future and confirmed that it will not have a yearly release schedule like most handheld console makers. Usually, makers of handheld PCs and gaming consoles like ASUS with its ROG Ally, GPD with its Pocket, Lenovo with Legion GO, and many others follow a yearly update structure of its products to put the latest and greatest chipsets into their products. However, Valve is taking a more conservative approach to updating its famous Steam Deck console.

"We're not going to do a bump every year," said Lawrence Yang, adding that "There's no reason to do that. And, honestly, from our perspective, that's kind of not really fair to your customers to come out with something so soon that's only incrementally better. So we really do want to wait for a generational leap in compute without sacrificing battery life before we ship the real second generation of Steam Deck. But it is something that we're excited about and we're working on." The infamous successor to the original Steam Deck, Steam Deck 2, is currently shrouded in mystery. We don't have much information about the hardware that will power it, nor is there a release date. However, as Valve notes, it will be a "generational leap in compute" bringing more gaming capability to the platform. With many competitors releasing handheld gaming consoles, we are expecting Valve to come out with a new console soon.

After Apple, we just learned that AMD is the next company in line for US-based manufacturing in the TSMC Arizona facility. Industry analyst Tim Culpan reports that TSMC's Fab 21 in Arizona will soon be producing AMD's high-performance computing (HPC) processors, with tape out and manufacturing expected to commence on TSMC's 5 nm node next year. This move comes after previously reported Apple's A16 SoC production, which is already in progress at the facility and could see shipments before the end of this year, significantly ahead of the initially projected early 2025 schedule. The production of AMD's HPC chips in Arizona marks a crucial step towards establishing an AI-hardware supply chain operating entirely on American soil, which is expected to further expand with Intel Foundry and Samsung Texas facility.

Making HPC processors domestically serves as a significant milestone in reducing dependence on overseas semiconductor manufacturing and strengthening the US's position in the global chip industry. Adding to the momentum, TSMC and Amkor recently announced a collaboration on advanced packaging technologies, including Integrated Fan-Out (InFO) and Chip-on-Wafer-on-Substrate (CoWoS), which are vital for high-performance AI chips. However, as Amkor facilities are yet to be built, these chips are going to be shipped back to Taiwan for packaging before being integrated into the final product. Once the Amkor facility is up and running, Arizona will become the birthplace of fully manufactured and packaged silicon chips.

Following Epic Games's recent victory over Apple, which effectively forced the iPhone maker to allow third-party apps on iOS in the EU, the game developer and distributor has won a similar case against Google, except in the US, this time. The ruling places several restrictions on what Google can and can't do when it comes to the Android operating system and how it positions its own apps and services on Android phones, including prohibiting Google from paying device manufacturers to include its Play software on their devices and forcing developers to use Google's payment platform.

The ruling (PDF) and its consequent restrictions will start on November 1, 2024, will last three years, and Google isn't particularly happy about the mandated changes, having already confirmed that it will appeal the decision, citing security concerns and arguing that the order would negatively affect developers: "these changes would put consumers' privacy and security at risk, make it harder for developers to promote their apps, and reduce competition on devices."

Super Flower, a leader in high-performance power supply units (PSUs), is thrilled to announce the launch of a full product lineup that extends beyond their renowned PSUs. This comprehensive expansion includes air coolers, water coolers, case fans, and chassis, aiming to provide PC enthusiasts with a broader range of components that deliver both performance and aesthetic appeal. The new products are designed to meet the diverse needs of gamers, content creators, and tech enthusiasts who seek reliable, high-quality solutions for their custom builds.

Leading the lineup is the Leadex III ATX 3.1, available in 650 W, 750 W, 850 W, 1000 W, and 1300 W configurations. This PSU exemplifies Super Flower's commitment to excellence, offering unmatched performance, efficiency, and safety for even the most demanding systems. Its advanced features cater to gamers and power users alike, ensuring stability and reliability under intense loads.

According to a recent Reuters report, the US government, under Biden's administration, will allow a few criteria-matching semiconductor fabs to circumvent environmental protection laws. On Wednesday, President Joe Biden signed legislation that effectively enables these fabs to not follow the strict regulations designed for maximum preservation of the environment. The Semiconductor Industry Association has noted that without this new legislation, companies that are extending facilities on US soil would be significantly slowed down due to the National Environmental Policy Act (NEPA) of 1969. The CHIPS Act's primary force driver isn't just domestic production but near-future completion so that future geopolitical shifts don't impact US companies. The speed of getting permits to manufacture advanced chips is essential for every CHIPS Act recipient company, like Intel, Samsung, TSMC, and Micron.

Huawei has reportedly started shipping its Ascend 910C accelerator—the company's domestic alternative to NVIDIA's H100 accelerator for AI training and inference. As the report from China South Morning Post notes, Huawei is shipping samples of its accelerator to large NVIDIA customers. This includes companies like Alibaba, Baidu, and Tencent, which have ordered massive amounts of NVIDIA accelerators. However, Huawei is on track to deliver 70,000 chips, potentially worth $2 billion. With NVIDIA working on a B20 accelerator SKU that complies with US government export regulations, the Huawei Ascend 910C accelerator could potentially outperform NVIDIA's B20 processor, per some analyst expectations.

If the Ascend 910C receives positive results from Chinese tech giants, it could be the start of Huawei's expansion into data center accelerators, once hindered by the company's ability to manufacture advanced chips. Now, with foundries like SMIC printing 7 nm designs and possibly 5 nm coming soon, Huawei will leverage this technology to satisfy the domestic demand for more AI processing power. Competing on a global scale, though, remains a challenge. Companies like NVIDIA, AMD, and Intel have access to advanced nodes, which gives their AI accelerators more efficiency and performance.

TSMC and Samsung are reportedly in talks with the United Arab Emirates (UAE) to establish chip factories in the Gulf nation. As reported by the Wall Street Journal, this "desert dream" aligns with the UAE's ambitious plans to diversify its economy beyond oil and become a key player in the AI sector by building chips for AI domestically. The UAE and neighboring Saudi Arabia plan to leverage their oil wealth to invest in cutting-edge manufacturing, with AI emerging as a primary focus due to its high computational demands. Successful implementation of chip factories could significantly boost the region's AI capabilities and impact the global semiconductor supply chain. However, the project faces substantial challenges. Previous attempts to establish semiconductor manufacturing in the Gulf, such as the GlobalFoundries initiative over a decade ago, have yet to progress beyond initial planning.

The current proposal faces even greater obstacles, with estimated costs exceeding $100 billion for a state-of-the-art facility and necessary infrastructure. Geopolitical concerns add another layer of complexity. Recent US export restrictions of certain chips to the Gulf region may complicate the transfer of advanced manufacturing processes to the UAE. Despite these hurdles, the potential benefits are significant. For the UAE, success would represent a major step towards economic diversification and technological leadership. TSMC and Samsung could gain a strategic presence in a region eager for technological advancement. TSMC noted that the company focuses on current expansion projects in the US, Japan, and Germany, while Samsung declined to comment.

The $8.5 billion in CHIPS Act assistance intended for Intel from the US government is expected to be delayed due to the company's ongoing financial struggles. According to a Bloomberg report, the Department of Commerce rejected the initial allocation request, requiring Intel to meet specific objectives and complete a comprehensive due diligence process before the funds are released.

Intel has committed to remaining engaged in discussions despite the additional requirements, though it encountered regulatory and timing challenges. The terms of the funding include $8.5 billion in direct assistance to Intel, along with $11 billion in low-cost credit, and a 25 percent tax credit worth up to $100 billion for Intel's investments in Arizona, New Mexico, Ohio, and Oregon.

TSMC has reportedly managed to produce yields at its Arizona facility that are on par with yields back home in Taiwan, making its expansion efforts successful. According to Bloomberg, TSMC did a trial production, a multi-month effort, to produce N4 node wafers with low defect rates. With wafers now in TSMC's labs for testing, it is reported that Arizona facility yields have achieved parity with their Taiwanese facilities back home. This indicates that TSMC's efforts to expand in the US are so far considered a success, as advanced chipmaking is a very complex process that is only done by a few makers and in very few locations. With TSMC expanding in the US now and proving that its technology can work on US soil, the company has a green light to start volume production in the first half of 2025.

However, this is only the beginning of TSMC's Arizona expansion. The Taiwanese giant plans to have a second fab operational by 2028 and produce 2 nm and 3 nm chips in the state. Additionally, there will be a third facility for 2 nm and more advanced nodes in Phoenix, bringing the total value of TSMC's US expansion efforts to $65 billion, with $6.6 billion from the CHIPS Act grants and $5 billion in loans from the US government. If upcoming fabs follow the lead of the first facility, US-based production needs will possibly be satisfied.

The Netherlands government announced additional export controls on advanced chipmaking equipment on Friday. This decision, which specifically targets ASML's DUV immersion lithography tools, has drawn sharp criticism from Beijing. The new regulations, aligning with similar restrictions imposed by the US last year, will require additional licensing for the export of ASML's 1970i and 1980i models. China's Commerce Ministry swiftly responded to the announcement, expressing dissatisfaction with what it perceives as unwarranted restrictions on trade. In a statement released Sunday, the ministry accused the United States of leveraging its global influence to pressure allies into tightening export controls, describing it as an attempt to maintain "global hegemony" in the semiconductor industry.

The Chinese government urged the Netherlands to reconsider its position, calling for a balance between security concerns and the preservation of mutually beneficial economic ties. Beijing emphasized the importance of safeguarding the "common interests" of businesses in both countries and warned against potential damage to Sino-Dutch cooperation in the semiconductor sector. Dutch Trade Minister Reinette Klever defended the decision, stating it was made "for our safety." However, this move could have significant implications for ASML, which has already faced restrictions on exporting its most advanced systems to China. ASML receives as much as 49% of its revenue from China, meaning that additional export regulations could significantly reduce revenues if licenses aren't approved.

According to a recent report from Nikkei, China has claimed the number one spot as the single highest spender on chipmaking tools. As the data from SEMI highlights, China spent a whopping $25 billion on key semiconductor tools in the first half of 2024, more than the US, Taiwan, and South Korea combined. And the train of acceleration for the Chinese semiconductor industry doesn't seem to be slowing down, as the country is expected to spend more than $50 billion for the entire year 2024. However, this equipment is not precisely leading-edge, as Chinese companies are under Western sanctions and are unable to source advanced EUV lithography tools for making sub-7 nm chips.

Most of the spending is allocated to mature node chipmaking facilities. These so-called "second tier" companies are driving the massive expenditures, and they are plentiful. Nikkei reports that there are at least ten firms that operate with mature nodes like 10/12/16 nm nodes. Being the biggest spender, China is also one of the primary revenue sources for many companies. For the US chipmaking tool companies like Applied Materials, Lam Research, and KLA, Chinese purchases accounted for 32%, 39%, and 44% of their latest quarterly revenue, respectively. Tokyo Electron recorded orders to China accounting for 49.9% of its revenues in June, while the Netherlands giant ASML also attributed 49%. Perhaps even more interesting is the expected outlook for 2025, which shows no signs of slowing down. The Chinese semiconductor industry must establish complete self-sufficiency, and massive capital expenditures are expected to continue.