Chinese manufacturers have seized significant market share in legacy chip production, driving prices down and creating intense competitive pressure that Western competitors cannot match. The so-called "China shock" in the semiconductor sector appears as mature node production shifts East at accelerating rates. Legacy process nodes, which are usually 16/20/22/24 nm and larger, form the backbone of consumer electronics and automotive applications while providing established manufacturers with stable revenue streams for R&D investment. However, this economic framework now faces structural disruption as Chinese fabs leverage domestic demand and government support to expand capacity. By Q4 2025, Chinese facilities will control 28% of global mature chip production, with projections indicating further expansion to 39% by 2027.

This rapid capacity growth directly results from Beijing's strategic pivot following US export controls on advanced semiconductor equipment, which redirected investment toward mature nodes where technological barriers remain lower. This is happening in parallel with companies like SMIC, although isolated, which are developing lithography solutions for cutting-edge 5 nm and 3 nm wafer production. For older nodes, The market impact appears most pronounced in specialized materials like silicon carbide (SiC). Industry benchmark 6-inch SiC wafers from Wolfspeed were previously $1,500, compared to current $500 pricing from Guangzhou Summit Crystal Semiconductor—representing a 67% price compression that Western manufacturers cannot profitably match. Multiple semiconductor firms report significant financial strain from this pricing pressure. Wolfspeed has implemented 20% workforce reductions following a 96% market capitalization decline, while Onsemi recently announced 9% staff cuts. With more Chinese expansion into the mature node category, Western companies can't keep up with the lowered costs of what is now becoming a commodity.

Over the past three weeks, press outlets and the buying public have levelled heavy criticism at NVIDIA board partners. The launches of three GeForce RTX 50-series "Blackwell" GPUs have—so far—been problematic; based on news reports and community feedback. Prior to release (on February 20), VideoCardz anticipated major price fluctuations for an all-custom portfolio of GeForce RTX 5070 Ti graphics cards. The publication did not hold back with its targeting of ASUS; one of Team Green's big time AIBs. Only a small selection of baseline MSRP ($749) conformant models were available on day one, and VideoCardz posited that manufacturers would implement price hikes soon after launch. A follow-up report continues their investigation into a lack of baseline MSRP options, as well as so-called "fake promotions."

VideoCardz repeated its belief that ASUS will jack-up the asking price for its PRIME GeForce RTX 5070 Ti model. When looking at Newegg's listing of baseline MSRP cards, the intrepid investigator stumbled up another notable absence: "we wrote three articles about the ASUS RTX 5070 Ti PRIME model not being listed as an MSRP card by retailers, which finally led ASUS to intervene (most likely for a limited time) to sell this card at the promised price. What we can immediately notice is the lack of the VENTUS 3X model from MSI, which was basically 90% of the MSRP card review coverage yesterday, as NVIDIA had no Founders Edition card for this launch and relied on board partners. In fact, the VENTUS 3X non-OC is not even included in the official launch, meaning that the card you saw yesterday in reviews is simply not available anywhere." It should be noted that TechPowerUp received an MSI GeForce RTX 5070 Ti Ventus 3X OC sample unit for evaluation purposes (review guide pricing was $749); Newegg lists this particular model with a current $829.99 price point, but stock is unavailable (at the time of writing).

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.

According to sources close to the Wall Street Journal, Intel is weighing preliminary acquisition offers that could split the company into two parts: product and foundry. TSMC and Broadcom are independently exploring deals that would divide Intel's chip design and manufacturing operations. Broadcom has initiated informal discussions regarding Intel's chip design and marketing divisions, while TSMC is considering assembling an investor consortium to acquire Intel's facilities. This solution is improbable, as Intel's fabs are strategically one of the most critical aspects of the US semiconductor supply chain. Intel manufactures custom chips for the US Department of Defense; hence, having a foreign owner of fabs is not acceptable. The news about the acquisition comes as Intel grapples with manufacturing setbacks, including a total $13.4 billion loss in its foundry segment during 2024 and a significant erosion of market share in the AI processor market.

The acquisition talks face substantial regulatory hurdles, particularly regarding national security concerns. The US government has signaled resistance to foreign ownership of Intel's domestic manufacturing capabilities, which are deemed strategically vital to American technological sovereignty. This could particularly impact TSMC's bid for Intel's plants despite the Taiwanese company's position as the world's leading contract chipmaker. Intel's vulnerability to acquisition follows a series of strategic missteps under former leadership, including delayed manufacturing innovations and an increasing reliance on government subsidies for facility expansion. The company's share price has declined 60% from its 2021 highs amid these challenges, attracting potential buyers despite the complexity of any potential deal structure. Successful execution would require navigating both regulatory approval and the practical difficulties of disaggregating Intel's deeply integrated design and manufacturing operations.

China's dominance in semiconductor equipment procurement is expected to face its first setback since 2021, with spending projected to decrease from $41 billion to $38 billion in 2025, according to semiconductor research firm TechInsights. This 6% decline marks a significant shift for the world's largest buyer of wafer fabrication equipment, whose purchases represented 40% of global sales in 2024. The downturn reflects mounting pressures from both market dynamics and geopolitical constraints. US export controls targeting advanced semiconductor capabilities have intensified while domestic chipmakers grapple with overcapacity in mature node segments. SMIC, China's leading foundry, has already signaled concerns about oversupply risks in this sector, where Chinese manufacturers have rapidly expanded their market share against Taiwanese competitors.

Despite these headwinds, Chinese equipment manufacturers have notably advanced domestic capability development. Naura Technology Group has emerged as the seventh-largest global equipment manufacturer, while AMEC continues to expand its international presence. However, critical gaps persist in China's semiconductor equipment ecosystem, particularly in lithography systems, where dependence on foreign suppliers like ASML remains high. TechInsights data reveals that Chinese companies supplied only 17% of testing tools and 10% of domestic assembly equipment in 2023. The spending reduction comes after a period of aggressive stockpiling prompted by US sanctions to limit Beijing's access to advanced chipmaking capabilities, especially those applicable to artificial intelligence and military applications. However, Chinese manufacturers have demonstrated resilience, with SMIC and Huawei successfully producing advanced chips through alternative, albeit more costly, manufacturing methods.

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.

3M is expanding its commitment to the semiconductor industry by joining the US-JOINT Consortium, a strategic partnership of 12 leading semiconductor suppliers. The consortium drives research and development in next-generation semiconductor advanced packaging and back-end processing technologies anchored by a new cutting-edge facility in Silicon Valley.

"As the demands of AI and other high performance computing technologies increase, suppliers must work together to provide comprehensive solutions to tough challenges on increasingly shorter timelines." said Steven Vander Louw, 3M's president of display and electronics product platforms. "The companies in the US-JOINT Consortium represent US and Japanese innovation leaders in a range of advanced packaging technologies. 3M is pleased to join the consortium in order to bring our decades of materials science expertise, across more than 50 technology platforms, to help address these challenges."

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.

Multiple sources say an unidentified corporation is exploring the complete acquisition of Intel Corporation, according to tech publication SemiAccurate. The report points to an internal memo shared among a small group of top executives at the unnamed firm. A high-level insider confirmed the memo's legitimacy last week, reinforcing speculation that a purchase of Intel may be under serious consideration. SemiAccurate's report indicates that the prospective buyer has enough financial resources to acquire Intel outright, considering the company's current market valuation. Notably, this potential buyer has not been publicly identified in previous discussions about Intel's future, suggesting that planning has occurred behind closed doors. The memo's limited circulation hints that executives treat the proposal cautiously rather than engaging in casual exploratory talks.

Any attempt to purchase Intel would require extensive regulatory review, given the company's role in producing semiconductors for both commercial and government applications. Regulators would likely evaluate issues related to national security, supply chain stability, and competitive impact in the global chip market. While neither Intel nor the unidentified acquirer has issued an official statement on the rumor, we are watching for any signals of formal negotiations. Intel has long been a strategic source of the US semiconductor sector, and its potential ownership change would have to be domestic. If a deal does materialize, it would stand among the largest transactions in the technology field.

Intel Foundry has announced the onboarding of new defense industrial base (DIB) customers, Trusted Semiconductor Solutions and Reliable MicroSystems, as part of the third phase of the Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) efforts under the Trusted & Assured Microelectronics (T&AM) Program in the Office of the Under Secretary of Defense for Research and Engineering (OUSD (R&E)). The RAMP-C project, awarded through the Strategic & Spectrum Missions Advanced Resilient Trusted Systems (S²MARTS) Other Transaction Authority (OTA), allows DIB customers to take advantage of Intel Foundry's leading-edge Intel 18A process technology and advanced packaging for prototypes and high-volume manufacturing of commercial and DIB products for the U.S. Department of Defense (DoD).

"We are very excited to welcome Trusted Semiconductor Solutions and Reliable MicroSystems to the RAMP-C project we are engaged in with the DoD. The collaboration will drive cutting-edge, secure semiconductor solutions essential for our nation's security, economic growth and technological leadership. We are proud of the pivotal role Intel Foundry plays in supporting U.S. national defense and look forward to working closely with our newest DIB customers to enable their innovations with our leading-edge Intel 18A technology," said Kapil Wadhera, vice president of Intel Foundry and general manager of Aerospace, Defense and Government Business Group.

For decades, leadership in computing and software ecosystems has been a cornerstone of American strength and influence worldwide. The federal government has wisely refrained from dictating the design, marketing and sale of mainstream computers and software—key drivers of innovation and economic growth. The first Trump Administration laid the foundation for America's current strength and success in AI, fostering an environment where U.S. industry could compete and win on merit without compromising national security. As a result, mainstream AI has become an integral part of every new application, driving economic growth, promoting U.S. interests and ensuring American leadership in cutting-edge technology.

Today, companies, startups and universities around the world are tapping mainstream AI to advance healthcare, agriculture, manufacturing, education and countless other fields, driving economic growth and unlocking the potential of nations. Built on American technology, the adoption of AI around the world fuels growth and opportunity for industries at home and abroad. That global progress is now in jeopardy. The Biden Administration now seeks to restrict access to mainstream computing applications with its unprecedented and misguided "AI Diffusion" rule, which threatens to derail innovation and economic growth worldwide.

European tech brand ENDORFY is making its first official appearance at CES 2025 in Las Vegas. Running through January 9, the company will showcase its latest PC components and peripherals to a global audience at the world's most influential tech event.

ENDORFY is expanding to the US market with a portfolio of high-quality PC components and accessories. This expansion supports the company's goal of reaching all modern technology enthusiasts with a range of products praised for combining advanced technology with reliability, efficiency, and great value for gamers, content creators, and tech enthusiasts.

TSMC's new semiconductor manufacturing facility in Phoenix, Arizona, will face production costs approximately 30% higher than its Taiwan-based operations when it begins mass production in early 2025. The increased expenses stem from higher tariffs and transportation costs associated with importing necessary materials from Taiwan. The Arizona facility will start producing 10,000 12-inch wafers monthly using a 4 nm node, with plans to double output to 20,000 wafers at full capacity. Four major technology companies—Apple, NVIDIA, AMD, and Qualcomm—have committed to purchasing chips from the plant for their AI and high-performance computing needs. The 445-hectare facility highlights ongoing challenges in America's semiconductor industry. Despite the aim to strengthen domestic chip manufacturing, the plant must import materials from Taiwan to maintain production quality, revealing gaps in the US semiconductor supply chain.

This overseas dependency drives up operational costs significantly. While TSMC's investment marks an essential step in rebuilding domestic capacity, the substantial cost difference between US and Taiwanese production raises questions about long-term viability. TSMC has already begun trial production at the site and plans to expand operations with additional phases. The company's Phase 2 facility is completed, and equipment is being installed, while future expansions aim to produce 2 nm chips by 2028. However, unless the cost gap narrows, the higher production expenses could impact the plant's competitiveness in the global semiconductor market, even competing with its own Taiwanese facilities, where customers could decide to use Taiwanese fabs due to lower costs. Meanwhile, TSMC continues to expand its Taiwan operations, with plans to build new 2 nm facilities in Kaohsiung's Science Park starting next year.

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.