Mid-way through April, a few Asian media outlets proposed a fairly recent formation of Xiaomi's "chip platform department"—most likely operating as part of the Chinese corporation's mobile phone development operation. Industry insiders claimed that this special branch was tasked with the designing of "Xuanjie" chipsets, with added expertise provided by an ex-Qualcomm marketing director. Weeks later, Jukanlosreve has weighed in with alleged new details. The keen tracker—of unannounced flagship smartphone chips and semiconductor business revelations—believes that previous leaks were of merit, but made some corrections.

Given reported greater than expected "new division" headcounts, Xiaomi probably established its "Xring SoC" team a while ago—on this topic, Jukanlosreve divulged: "it operates as a new company; independent of the original parent firm. It's not a small team either—it has over 1000 people. To be honest, I see it as a positive development if a domestically produced chip gets used in a domestically made smartphone and sold globally. I genuinely hope it becomes reality. If Xring succeeds, it might encourage more companies to get involved, and even engineers currently working at major firms could see better pay opportunities."

The first couple of paragraphs within Anthropic's "Securing America's Compute Advantage: (Our) Position on the Diffusion Rule" article are standard fare. Roughly half-way through a read of this policy-related piece, the North American (Amazon-backed) AI startup makes some bizarre claims about the smuggling of AI-oriented products into China. Given ongoing global tensions and growing industry demands, these activities are somewhat expected—but Anthropic leadership described very specific methodologies. As stated within their "Chip Smuggling is a Major Threat" passage: "China has established sophisticated smuggling operations, with documented cases involving hundreds of millions of dollars worth of chips. In some cases, smugglers have employed creative methods to circumvent export controls, including hiding processors in prosthetic baby bumps and packing GPUs alongside live lobsters." Specific bits of hardware were not mentioned in this section, but the author later alludes to the frictionless transfer of thousands of "NVIDIA H100 advanced chips" into Chinese territories.

In a statement issued to CNBC, a Team Green spokesperson dismissed Anthropic's fanciful claims: "American firms should focus on innovation and rise to the challenge, rather than tell tall tales that large, heavy, and sensitive electronics are somehow smuggled in 'baby bumps' or 'alongside' live lobsters." This very public spat has received mainstream attention; with further coverage documenting additional "to and fro" barbs. NVIDIA criticized Anthropic's anti-foreign competition stance: "China, with half of the world's AI researchers, has highly capable AI experts at every layer of the AI stack. America cannot manipulate regulators to capture victory in AI." Amusingly, Anthropic's operations rely heavily on Team Green hardware—many online critics reckon that top US AI companies are jostling for priority access to cutting-edge GPUs/accelerators. In reaction to NVIDIA's dismissal of their report, a company spokesperson retorted with: "Anthropic stands by its recently filed public submission in support of strong and balanced export controls that help secure America's lead in infrastructure development and ensure that the values of freedom and democracy shape the future of AI."

After the infamous US trade war escalated tariffs on Chinese goods to as high as 145%, many PC hardware and peripherals vendors have felt the pressure, with hardware companies, like Framework, previously both increasing prices on certain products and suspending orders on others altogether. In the case of Framework, this was later overturned when the US administration announced an exemption for certain electronics, including smartphones and computers. 8BitDo, however, has not been so lucky, with Polygon recently discovering that items not currently in the US warehouse cannot be shipped to the US. We confirmed this with a brief test of our own and found the same warning that our order could not be shipped to the US.

Curiously, there are no warnings on individual product pages or anywhere else on the 8BitDo website that give any indication that 8BitDo will not be able to fulfil orders with US shipping addresses. It's only after the products are added to the cart and buyers head to check out that the warning appears. In the case of Polygon, the warning specified which items could not be fulfilled, indicating that US warehouses still had stock of certain items, but when we tested it, the warning was less specific, reading only "Shipping not available. Your order cannot be shipped to the selected address. Review your address to ensure it's correct and try again, or select a different address." Amazon, on the other hand, still seems to have stock for at least some of 8BitDo's items available. We tested the 8BitDo Retro Mechanical Keyboard C64 Edition, which is unavailable via the 8BitDo site but is still listed at $99.99 on Amazon. Recently, Nintendo Switch 2 pre-orders were also suspended due to US tariffs on Chinese goods, and Gamers Nexus also recently published a deep dive detailing the sweeping effects of the increased pricing and uncertainty from the perspective of various US-based PC hardware vendors and system integrators.

Over the past month and a half, PC hardware retailers have tasked themselves with sharing of all sorts of bad news to their respective customer bases. Inet AB has outlined the outlook for regional availability of GeForce RTX 5070 graphics cards, but a newer blog entry focuses on the Team Red side of things. The popular Swedish store put a spotlight on today's launch of RDNA 4 products: "we have learned how the recommended prices, also known as MSRP prices, work for the launch of the AMD Radeon RX 9070 and RX 9070 XT. We are not allowed to say exact prices.., but simply put, they will apply to a limited number of cards. For this release, we will have MSRP prices from three manufacturers, all of whom have both an RX 9070 and an RX 9070 XT at MSRP." According to Inet's product table, the brands are: ASUS, PowerColor and SAPPHIRE. Respectively, the PRIME, Reaper and PULSE product families serve as substitutes to (absent) AMD-built equivalents.

So far, the retail launch of Radeon 9070 Series has experienced fewer hiccups—when compared to recent GeForce RTX 50-series releases. Unfortunately, Inet has indicated that price climbs are in the pipeline for AMD's brand-new RDNA 4 generation. The shop's blog elaborated on shifting circumstances: "the prices only apply to the first shipment of each model. For Sapphire and ASUS it will be just as usual, we have only received one shipment, and you can buy it until it runs out, but with PowerColor it will be different. In other words, only the cards that were released with MSRP prices at release will be sold for the lower price." Earlier today, Overclockers UK's initial batch of "baseline price conformant" stock was depleted rapidly—forum and social media posts boasted about "thousands of units" being amassed in a warehouse, prior to launch. Gibbo—a well-liked OCUK employee—shared some additional insight (yesterday): "I feel stock will be fine for a few days. MSRP is capped quantity of a few hundred, so prices will jump once those are sold through. Re-stocks and pricing is unknown going forward, nobody really knows what April will bring due to instability in world with USA starting to rage a trade war, we are all hopeful it won't impact computer stuff, but who knows."

Japan's central government will adjust its control over cutting-edge chips and quantum computer-related technology—a Japan Times news article proposes that new regulations will come into effect by the end of May. The report suggests that the nation's governing body is expanding its list of export-controlled items to include: "advanced chips, lithography equipment and cryo-coolers needed for the manufacture of quantum computers." The publication has gathered this information from revised foreign exchange laws. According to economy ministry officials, companies will be required to apply for external trade licenses—extra measures are being put in place to prevent the export of cutting-edge items to foreign military organizations. The updated terms are viewed as another step in tightening the supply of advanced semiconductor products to mainland China. Recent global events have paved the way for a new wave of AI chip-related restrictions.

Naturally, China has expressed concern regarding upcoming changes—they anticipate problems affecting supply chains and normal commercial exchanges between enterprises. According to the Japan Times report, the Ministry of Commerce in Beijing: "hopes Japan will make sure the measures don't hinder the economic and trade development between the two countries." The two nations have enjoyed a cordial semiconductor-centric trade relationship, skewed more in favor of Japan. Industry watchdogs believe that Chinese manufacturers have generated significant demand for Japanese-made production equipment. Japan's Ministry of Economy, Trade and Industry (METI) has updated its documents. According to the latest report, 42 new entities worldwide have been added to a list of: "foreign companies and organizations that would be subject to export oversight on any dual-use items. The additions come into effect on Feb. 5, it said. A total of around 110 Chinese companies, research institutions and other entities are on the list."

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.

During the Aspen Security Forums 2023, Intel CEO Pat Gelsinger spoke on the topic of semiconductors and national security. During his speech, Gelsinger mentioned that Intel should get the lion's share of the US$52 billion US CHIPS Act money, simply because Intel is a US company. In Gelsinger's opinion, it appears that TSMC and Samsung don't deserve as much, despite both companies manufacturing semiconductors for US companies, with Samsung already having a foundry in Texas, while TSMC is still struggling with the construction of its Arizona foundry.

Admittedly, Intel has far more foundries in the US, but it also seems like Gelsinger forgot about other foundries, such as GlobalFoundries, but also companies such as Micron, Texas Instruments, Qorvo, NXP, On Semi, Analog Devices and so forth that all own foundries that produce their own chips on US soil. We'd expect all these companies to be eyeing the CHIPS Act cash and without many of those companies, Intel wouldn't be able to sell any of its chips, as many of them produce much needed components that are used to build motherboards, laptops and what not. Gelsinger was obviously pointing fingers at the current US China trade war and how the export controls are causing concerns with regards to the global semiconductor business. As such, Gelsinger wants Intel to have fewer restrictions from the currently imposed trade regulations, largely due to China being some 25 to 30 percent of Intel's market, with Intel being busy expanding in the country. Make what you want of this, but it's clear that Gelsinger is expecting to eat the cake and have it at the same time. Video after the break.

US authorities have imposed a $300 million penalty on Seagate Technology Holdings plc, a market leader in data storage solutions, for an alleged violation of export controls. The US Commerce Department has investigated the California-based company's business dealings with Chinese hardware firm Huawei Technologies Co. Limited, specifically for the sale of hard disk drives to operations within mainland China. It has found that Seagate has broken the "foreign direct product (FDP) rule" that was established by the US Government back in 2020. Seagate is said to have sold approximately 7.4 million hard drive units to Huawei after the period in which the new rulings took effect - the total value of these shipments was estimated in the region of $1.1 billion.

The US government's serving of a civil penalty to Seagate appears to be part of a larger drive to prevent North American tech companies from selling advanced computer equipment to Chinese firms. Two other suppliers (not named) of storage solutions had agreed to the government imposed terms and ceased trade with Huawei in 2020. In contrast, Seagate has seemingly become a record breaking heretic according to a statement released yesterday by the Bureau of Industry (BIS) and Security: "This historic foreign direct product enforcement case and settlement represents the largest standalone administrative penalty in BIS history. Today's resolution also includes a multi-year audit requirement and a five-year suspended Denial Order. In August 2020, the Bureau of Industry and Security imposed controls over certain foreign-produced items related to Huawei. Despite this, in September 2020, Seagate announced it would continue to do business with Huawei. Seagate did so despite the fact that its only two competitors had stopped selling HDDs to Huawei, resulting in Seagate becoming Huawei's sole source provider of HDDs."

The Japanese government, on Friday March 31, announced that it plans to place restrictions on its export of 23 types of semiconductor manufacturing equipment. This follows similar efforts announced by other nations, including the USA and the Netherlands. In a news conference, the Minister for Economy, Trade and Industry (METI), Yasutoshi Nishimura stated: "We are fulfilling our responsibility as a technological nation to contribute to international peace and stability." The press release makes no mention of a trade battle between the USA or China, but the implication is that METI is limiting the latter's access to Japan's most advanced chip making equipment.

Nishimura-san continues: "If our exports are not being re-appropriated for military use, we will continue exporting. We believe the impact on companies will be limited." The U.S. government has called on its allies to prevent China's access to semiconductor manufacturing technology in order to slowdown domestic technological and military advancement. Japan and the Netherlands have previously agreed, back in January of this year, to restrict exports to China of equipment that could be used to churn out sub-14 nm chips.

Today the Dutch government has published more information on upcoming restrictions on export of semiconductor equipment. These new export controls focus on advanced chip manufacturing technology, including the most advanced deposition and immersion lithography tools. Due to these upcoming regulations, ASML will need to apply for export licenses for shipment of the most advanced immersion DUV systems.

It will take time for these controls to be translated into legislation and take effect. Based on today's announcement, our expectation of the Dutch government's licensing policy, and the current market situation, we do not expect these measures to have a material effect on our financial outlook that we have published for 2023 or for our longer-term scenarios as announced during our Investor Day in November last year.

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

The emergence of the COVID-19 pandemic in 1H20 seemed at first poised to devastate the IC design industry. However, as WFH and distance education became the norm, TrendForce finds that the demand for notebook computers and networking products also spiked in response, in turn driving manufacturers to massively ramp up their procurement activities for components. Fabless IC design companies that supply such components therefore benefitted greatly from manufacturers' procurement demand, and the IC design industry underwent tremendous growth in 2020. In particular, the top three IC design companies (Qualcomm, Broadcom, and Nvidia) all posted YoY increases in their revenues, with Nvidia registering the most impressive growth, at a staggering 52.2% increase YoY, the highest among the top 10 companies.

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.

Semiconductor manufacturing has been the latest victim of the recent trade war between China and the United States. With the US imposing sanctions on Chinese manufacturers, they have not been able to use any US technology without the approval of the US government. That has caused many companies to lose customers and switch their preferred foundry. The US government has also decided to sanction a Chinese company Huawei from accessing any US-technology-based manufacturing facilities, thus has prevented the Chinese company from manufacturing its chips in the facilities of TSMC. Left without almost any way to keep up with the latest semiconductor technology, Huawei is reportedly working on its own manufacturing facilities.

According to the Financial Times, Huawei is about to enter domestic silicon production with its partner company Shanghai IC R&D. And a big note here is that the manufacturing facility will not use any US technology. The production is allegedly going to start as soon as the end of this year, and the first process that will come out the door will be a rather outdated 45 nm node. The company is expecting to move on to a more advanced 28 nm node by the end of next year. While the capacities are unknown, we can assume that it will be enough for the company's purposes. With this move, Huawei will be 100% independent from any US influence and will own the complete vector of software and hardware, that is a custom made design by the company.Huawei R&D Center

Recently, the technology trade war between the US and China has been very challenging for Chinese semiconductor manufacturers. With a new regulation to prevent the use of US technology on foreign lands, the US administration has managed to prevent many companies from manufacturing the latest processes, and they have lost a part of their customer base. In awe of this craze, it seems like many silicon designers are storming to the competing foundries to get their designs taped out. According to the DigiTimes report, TSMC has seen a massive spike in demand for its 28 nm semiconductor node. The surge is going to reach a peak of almost 100% in the fourth quarter this year. The growth is mainly being driven by Chinese customers who are switching their manufacturing facilities. The report indicated that Qualcomm, as well, is a big part of the growth besides the remaining companies.

IC Insights recently released its September Update to the 2020 McClean Report that presented the second of a two-part analysis on the global IC foundry industry and included a look at the pure-play foundry market by region.

China was responsible for essentially all of the total pure-play foundry market increase in 2018. In 2019, the U.S./China trade war slowed China's economic growth but its foundry marketshare still increased by two percentage points to 21%. Moreover, despite the Covid-19 shutdown of China's economy earlier this year, China's share of the pure-play foundry market is forecast to be 22% in 2020, 17 percentage points greater than it registered in 2010 (Figure 1).

China's upcoming 14th five-year plan (2021-2025) will continue to highlight technology and capacity upgrades as the core of its semiconductor self-sufficiency strategy, with foundry capacity projected to expand 40% from the preceding plan and fabrication process expected to advance to 7 nm, according to Digitimes Research.

Bolstered by national policies in the 13th five-year plan, China's IC manufacturing industry is expected to see combined revenues double to CNY240 billion (US$34.28 million) in 2020 from 2016, and may also move 12 nm to production by the end of the year after having volume produced 14 nm process.

As the US stranglehold on Huawei keeps on tightening its grip, China's government is keen on both investing more heavily into in-country semiconductor manufacturing that can become a viable alternative to Huawei as a source a silicon, as well as decrease the country's dependence on Western or Western-tied companies. The country has already developed promising alternatives to foreign DRAM solutions via Xi'an UniIC Semiconductors and Yangtze Memory Technologies (YMTC). Now, following a previously-successful funding round held in Hong Kong (worth some $2.2 billion injected last month), China's largest contract chipmaker Semiconductor Manufacturing International Corporation (SMIC) is looking for an additional $2.8 billion funding round via Shanghai.

SMIC is currently years behind TSMC, the current benchmark when it comes to semiconductor manufacturing. For now, SMIC is only able to provide 14 nm product designs - and even in that node, silicon is being quoted as having as much as a 70% defect-rate on any given wafer produced by the company (they've already started 14 nm production of Huawei's low-cost Kirin 710 chipset). At any rate, sources point towards a 6,000 monthly wafer production capacity within SMIC, a very, very low number that fails to meet any current demand (TSMC, for scale, are quoted as producing as many as 110,000 7 nm wafers per month). It's definitely an uphill battle, but SMIC counts with the might of the Chinese government through its sails - so while the waters might not be smooth, investment rounds such as these two (which amount to some $5 billion capital injection in two months) will be sure to help grease the engines for china's semiconductor expansion as much as possible.