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Banner showcasing ASC Global's Component Compass, featuring news on the semiconductor and electronics market, including DeepSeek’s global impact, Nissan-Honda merger talks, US Postal Service updates, ASML’s chip demand outlook, potential China antitrust probe on US companies, and TSMC’s CoWoS capacity expansion.

Last Updated: 02/07/25

DeepSeek’s Impact Around the World

DeepSeek’s R1 model, released at a fraction of OpenAI’s costs, challenges U.S. AI dominance, causing NVIDIA’s stock to fall. Despite its cost efficiency, DeepSeek faces data protection issues and compliance with China’s national security rules, with the EU investigating data sovereignty concerns. Both the U.S. and China are ramping up AI investments while tightening access, leading to reduced cooperation.

Nissan Ends Merge Talks with Honda

Nissan ended merger talks with Honda, potentially clearing the way for Foxconn to pursue an acquisition. Foxconn could either monitor Nissan’s situation or proceed with a direct takeover, aiming to establish a stronger EV supply chain amid growing global electric vehicle adoption.

Potential Antitrust Probe by China on US Companies

With Trump’s 10% tariff on Chinese goods in effect, China is targeting U.S. tech giants, launching an antitrust probe into Google and possibly Intel. Intel, heavily reliant on China, faces growing regulatory scrutiny, reflecting escalating trade tensions between both nations.

US Postal Service Revers Temporary Suspension

The U.S. Postal Service reversed its suspension on China-bound parcels, causing confusion among retailers and shippers. The decision follows Trump’s 10% tariff and removal of the de minimis exemption, impacting companies like Temu and Shein, while increasing customs burdens.

ASML sees DeepSeek as an Opportunity for Chip Demand

ASML CEO Christophe Fouquet sees DeepSeek’s AI success as resource optimization, not proof of ineffective U.S. export controls. He predicts AI competition will focus on software, with future demand shifting from model training to applications, benefiting ASML as AI costs decline.

TSMC Increases CoWoS Capacity

TSMC plans to expand CoWoS advanced packaging capacity to 80,000 wafers monthly by 2025 and 150,000 by 2028-2029. Despite competition and trade tensions, demand for Nvidia’s AI GPUs remains strong, supporting TSMC’s leadership in high-end semiconductor packaging.

Yageo will Acquire Shibaura Electronics

Yageo will acquire Japan’s Shibaura Electronics for NT$14 billion to expand its sensor business globally. The deal, offering a 36.94% premium per share, aims to strengthen R&D, enhance market reach, and boost earnings through Yageo’s distribution network.

More Component Compass news

Murata Predicts MLCC Demand by AI

Murata predicts AI-driven MLCC demand will more than double by fiscal 2025, with AI servers using eight times more MLCCs than traditional servers. Strong AI demand, increased orders, and a weaker yen boosted Murata’s Q4 2024 net profit by over 40%.

NXP and STMicroelectronics Plan Layoffs

Facing weak demand for automotive and industrial chips, NXP and STMicroelectronics plan workforce reductions. NXP may cut 1,800 jobs, while STMicroelectronics considers a 6% reduction, reflecting broader market pressures and economic uncertainties in the European semiconductor industry.

CPU Market Shifts

AMD’s 4th Gen Genoa server CPU prices are rising, while desktop 9800X3D prices drop as the 9950X3D launches. Intel’s Sapphire Rapids and Raptor Lake mobile CPUs face tight supply, with constraints expected through May due to geopolitical concerns.

GPU Trends and Supply Issues

Jetson Orin NX 16GB lead times stretch to 12–16 weeks. RTX 4090 supply tightens ahead of RTX 5090’s launch. Nvidia’s Blackwell RTX500 arrives in Q2, and Intel ARC GPUs face shortages. Nvidia’s GH200 servers may impact DRAM pricing.

Memory Market Developments

DDR4 demand rises amid a supply cut, pushing prices up. DDR5 pricing softens post-Lunar New Year, with shifting interest toward 6400-speed modules and high-capacity 96GB+ options. Micron plans to end DDR4 production by December 2025.

Storage & Component Supply Updates

SSD prices drop sharply due to weak demand, with Kioxia and Solidigm adjusting strategies. HDD manufacturers expand capacity for AI needs. Capacitor and MOSFET lead times extend, with Vishay and Nichicon facing disruptions.

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