foreign chipmakers

BlackRock believes India's equity market is unfairly penalized for its limited direct AI exposure and oil price sensitivity. Despite record foreign outflows and a challenging macro environment, the asset manager remains constructive on India's medium- to long-term prospects, citing strong demographics, infrastructure, and financial sector strength. They see potential for indirect AI-related opportunities and favor sectors like financials.

Tech giants like Google and Amazon are reducing H-1B visa filings, while AI leaders such as OpenAI and Nvidia are significantly increasing them. This surge reflects a fierce competition for top talent, with companies willing to pay more to secure specialized researchers. New policy changes, including higher fees and a lottery favoring experienced workers, are also shaping the landscape.

Nine major industry trade groups have warned the Trump administration that the rapid expansion of AI data centers is severely straining global memory chip supplies. This surge in demand is driving up prices and reducing availability for critical sectors like automotive, healthcare, and consumer electronics, posing risks to US supply chains and the broader economy.

In the cases of both South Korea and Taiwan, the stock market rally is fuelled by a powerful surge in semiconductor giants that are benefiting from the global artificial intelligence boom.

At a time of global economic turmoil, why are some global markets like the US, Taiwan and South Korea rallying? Why has the Indian stock market slipped from record highs, giving negative returns over the last few quarters?

Nvidia is aggressively hiring foreign talent on H-1B visas, increasing its certifications despite a tech immigration slowdown. Federal data reveals substantial salary ranges for roles like AI researchers and engineers, with top positions exceeding $400,000. This strategy contrasts with rivals like Google and Amazon, who have reduced sponsorships.

According to data compiled by Bloomberg, Taiwan’s overall market capitalisation rose to $4.95 trillion as of Monday, while India’s market value declined to $4.92 trillion.

During their discussions, President Trump and Xi Jinping placed Taiwan at the forefront of their diplomatic agenda. Trump perceives arms sales to Taiwan as a way to gain leverage, whereas Taiwan insists on its importance for regional harmony. Given its strategic significance in the technology sector, especially in chip manufacturing, any tension involving Taiwan could disturb the global economy.

Nvidia's market share in China has fallen to zero. CEO Jensen Huang believes the market will eventually reopen. US President Donald Trump discussed chip issues with Chinese leaders. China is prioritizing homegrown chips from companies like Huawei. This situation poses a significant risk to Nvidia's substantial business opportunities in the region.

President Trump's visit to China is overshadowed by the Iran War, which has disrupted global energy supplies and impacted his approval ratings. While trade and Taiwan remain on the agenda, the protracted conflict in Iran presents a significant challenge, with the US struggling to achieve its war aims and facing a decline in superpower status.

Anthropic's paper outlines two scenarios for US-China AI leadership by 2028. In one, the US maintains its compute advantage through tightened export controls, leading to democratic AI norms. The other sees China overtaking the US if policymakers fail to act, resulting in authoritarian AI dominance.

Despite a positive meeting, China is strategically expanding economic leverage against the US. New regulations target companies shifting supply chains and restrict foreign tech in state data centers. Beijing is building pressure tools, moving beyond trade, as both nations navigate a complex geopolitical landscape and competition for critical resources.

The United States has granted permission to South Korea's SK Hynix and Samsung to continue receiving chipmaking tools at their Chinese plants without applying for new licenses. This authorization comes after new rules were issued in October 2022, restricting shipments of advanced chips and chipmaking equipment to China. The move aims to slow down China's technological and military advancements.

The Biden administration planned to introduce new rules limiting China's access to advanced AI chips and semiconductor equipment. The restrictions targeted US and South Korean firms, but exempted allies like Japan and the Netherlands. These measures aimed to curb China's technological progress and were expected to be announced by late August.

Chinese auto chipmaker GTA Semiconductor recently completed a largely state-funded financing round worth over $1.8 billion, state-backed Securities Times reported on Wednesday, with the move described as a clear signal to the domestic chip manufacturing industry that Beijing is still willing to invest in it.

US lawmakers are urging the State and Commerce Departments to bolster export controls on advanced chipmaking equipment to China. Citing national security risks, they emphasize the need for allied cooperation to implement countrywide restrictions, warning that current entity-specific controls are insufficient. A briefing on the administration's strategy is requested within a month.

India is set to get its first chip-making facility with IBM and STMicroelectronics in advanced stages of talks with the government for an investment of over Rs 50,000 crore.

The Trump administration is reportedly planning tariffs on foreign electronic devices, calculated by chip content, to pressure companies into US manufacturing. White House spokesperson Kush Desai defended the move for national security. These proposed tariffs, potentially 25% on chip parts, could significantly raise consumer electronics prices, exacerbating current inflation.

China is mandating state-funded data centers to exclusively use domestic AI chips, instructing projects under construction to remove foreign components. This significant move aims to achieve AI chip self-sufficiency, impacting major foreign suppliers like Nvidia, AMD, and Intel. The directive underscores Beijing's accelerating push to reduce reliance on American technology amidst ongoing trade tensions.

The US plans to announce its third set of restrictions on China's semiconductor industry, targeting over 140 Chinese companies. The new measures aim to hinder China's development of advanced chips, especially for AI and military use. Export controls on critical technology and chipmaking equipment will be imposed, affecting both Chinese and international companies. China has strongly opposed these actions.

A US official is urging Japan and the Netherlands to strengthen restrictions on semiconductor exports to China, aiming to limit China's access to advanced chipmaking technology. This follows earlier agreements and US imposed restrictions on equipment crucial for China's military modernization efforts, amid ongoing diplomatic efforts and trade controls.

China's directive to eliminate foreign network chips by 2027 affects US chipmakers, leading to a shift to domestic options. Tensions between US and China drive Beijing to replace Western technology with local alternatives.

With existing facilities in Niigata prefecture, Fukui prefecture, and Taiwan, Shin-Etsu will utilize internal funds for this new venture. Japan is witnessing a surge in semiconductor sector investments, vital for defense, automotive, and electronics industries.

America has granted Samsung and SK Hynix yearly permits to send chipmaking tools to their Chinese plants until 2026. This replaces an older system with stricter annual reviews. These licenses allow factories to operate and maintain equipment. However, they do not permit expansion or upgrades to the newest technology. The US aims to limit China's access to advanced chip-making tools.

Nvidia has beaten Intel for the first time as the most valuable US chipmaker. The graphic component maker's shares rose 2.3% in afternoon trading on Wednesday to a record $404, putting its market capitalisation at $248 billion, just above the $246 billion value of Intel, once the world's leading chipmaker.

China has mandated domestic chipmakers to source at least 50% of their equipment locally, a move driven by US export restrictions. This policy, part of President Xi Jinping's tech strategy, aims for complete independence in chipmaking. While flexibility exists for advanced lines, China is pushing for 100% domestic reliance, impacting global players.

The Trump administration is reportedly developing a policy requiring semiconductor companies to match domestic chip production with imported volumes, or face tariffs up to 100%. This initiative aims to reduce foreign reliance and reshore manufacturing, with provisions for companies building new US facilities. While established US chipmakers could benefit, significant implementation challenges are expected.

Jaiprakash Associates has tied up with IBM and Israel’s Tower Jazz, while Hindustan Semiconductor Manufacturing Corporation (HSMC) has tied up with ST Microelectronics and Malaysia’s Siltera to set up two chip-making facilities, the government said on Friday.