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Last Updated: 5/23/25
The UAE secured a breakthrough agreement with Washington to import 500,000 of NVIDIA’s advanced AI chips annually starting in 2025, running potentially until 2030. The deal aims to enhance UAE’s data center capabilities, with G42 receiving 20% of the chips. Trump also announced $600 billion in Gulf tech commitments.
The U.S. Department of Commerce rescinded Biden’s AI Diffusion Rule limiting AI chip exports, replaced by guidance favoring trusted allies. Trump’s administration secured a deal granting the UAE advanced AI chip access, while continuing restrictions on China. The new approach emphasizes innovation and targeted controls against adversaries.
Trump urged Apple CEO Tim Cook to shift manufacturing from India to the U.S., despite Apple’s expansion in India, where it plans to produce 25% of global iPhones. Apple committed to investing $500 billion in U.S. manufacturing but remains reliant on India and China for most of its production.
The US Bureau of Industry and Security (BIS) stated Huawei’s Ascend 910B, 910C, and 910D ICs may involve US-origin tech, requiring a BIS license for usage. Violations risk severe penalties. Despite outperforming Nvidia’s ICs, Huawei’s production limitations lessen the impact. BIS also rescinded the AI Diffusion Rule, potentially easing US-China chip sales.
TDK will begin shipments of its third-generation silicon anode batteries by June, ahead of schedule. The new batteries, offering 15% higher energy capacity, enable slimmer smartphones. Major brands like Apple and Samsung are expected to adopt the technology. A new factory in India will expand production in September.
Samsung Electronics secured deals with major clients to increase DRAM prices—the first increase in over a year. DDR4 prices will rise by 20%, and DDR5 by 5%, reflecting stronger demand. The move signals a recovery in the memory market, with buyers anticipating further price hikes and building up inventories.
TSMC has requested key suppliers to cut raw wafer prices by 30% due to the NT dollar’s rapid appreciation, which threatens profit margins. The company accelerated cost-reduction measures and is closely monitoring currency fluctuations. TSMC’s Q2 forecast assumes a 32.5 USD/NTD rate, with projected revenue up to $29.2 billion.
Nintendo has chosen Samsung to manufacture the NVIDIA-designed chip for its upcoming Switch 2, replacing TSMC. Produced on Samsung’s 8nm process, the move highlights rising confidence in Samsung’s foundry. Nintendo aims to ship over 20 million units by March 2026, with additional components from SK hynix and MediaTek.
Murata Manufacturing will expand its Ho Chi Minh facility, adding 10,576 sqm for inductor coil production. The JPY 3 billion investment aims to meet growing automotive and electronics demand, with completion set for early 2026. The move reinforces Vietnam’s role in global electronics manufacturing.
More Component Compass news
Xiaomi YU7 SUV Launches July to Rival Tesla Model Y
Xiaomi will begin selling its YU7 electric SUV in July, positioning it as a top rival to Tesla’s Model Y in China. The YU7 offers a 835 km range, exceeding Model Y’s 719 km. Prices remain undisclosed. Xiaomi also unveiled new chips and faces scrutiny after a fatal SU7 crash.
AMD Forecasts $1.5B Revenue Loss from China Export Restrictions
AMD projects a $1.5 billion revenue loss in 2025 due to tighter U.S. export restrictions on advanced AI chips to China, which represents a quarter of its annual revenue. Despite the setback, CEO Lisa Su remains confident in AI-related data center growth. Nvidia also anticipates a $5.5 billion impact.
AMD Sells ZT Systems Server Business to Sanmina
AMD is selling ZT Systems’ server manufacturing unit to Sanmina for $3 billion, combining cash, stock, and performance-based payments. The deal, closing by end-2025, leaves AMD with ZT’s AI design business. Sanmina will become AMD’s preferred manufacturing partner for cloud AI solutions, boosting U.S.-based production capabilities.
TSMC Expands Global Fabs, Boosts 2nm and Packaging Capacity
TSMC plans to build nine new facilities in 2025, including eight fabs and an advanced packaging plant, focusing on 2nm technology and beyond. Key sites include Fab 25 in Taichung and five new fabs in Kaohsiung. Overseas expansions continue with Arizona and Kumamoto fabs, supporting AI and HPC demands.
India Approves $435M HCL-Foxconn Semiconductor Plant in Uttar Pradesh
India’s cabinet approved a $435 million semiconductor plant in Uttar Pradesh, a joint venture between HCL Group and Taiwan’s Foxconn. Expected to produce 36 million display driver chips annually, the facility will begin commercial production in 2027, marking India’s sixth project under its Semiconductor Mission.
China’s Push for Localized Automotive Chip Production
China is urging major carmakers like SAIC Motor, BYD, and FAW Group to source 20-25% of their automotive chips locally by 2025. This initiative aims to build a self-sufficient semiconductor supply chain amid increased tensions with the U.S. While the guidelines are currently non-mandatory, a credit system will incentivize adherence to this policy, potentially boosting domestic chip manufacturers.
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