Manufacturing

Intel and AMD are reportedly in early talks regarding AMD potentially using Intel’s foundry services. This news boosted Intel’s shares by 7%. Securing AMD as a client would be a major win for Intel, validating its foundry strategy and attracting further investment. It would also signify significant trust from AMD, a direct competitor in the processor market. Diversifying to Intel could improve AMD’s supply chain. Intel’s foundry ambitions are supported by government and Nvidia investments as signals of confidence in Intel’s turnaround, boosting its shares nearly 77% year-to-date. Both companies declined to comment.

The Huawei China Tour 2025, coinciding with the World Intelligent Industry Expo in Chongqing, focuses on AI’s transformative role in manufacturing. Government officials and industry leaders explored AI-driven upgrades, with Huawei showcasing its strategic, technological, and collaborative ecosystem approach. Chongqing aims to become an AI-centric industrial hub, fostering collaboration with Huawei. The tour highlighted AI applications in various manufacturing aspects, including R&D, production, and supply chains, exemplified by success stories from Seres and Changan Automobile. Huawei is partnering to build a “manufacturing + AI” ecosystem in Chongqing.

Sony has completed shifting its PlayStation 5 (PS5) console production for the U.S. market out of China in response to U.S. tariffs. According to CFO Hiroki Totoki, this supply chain realignment aims to mitigate the impact of trade tensions. The production shift for PS5 peripherals is expected to be finalized by the end of September 2025. While current PS5 prices in the U.S. remain stable, Sony will dynamically adjust future pricing based on various factors including profitability and market competitiveness.

Former Intel CEO Craig Barrett argues that Intel’s survival is crucial for U.S. chip manufacturing dominance. He believes underinvestment hinders Intel’s ability to compete with TSMC and Samsung. Barrett proposes a $40 billion collective investment from Intel’s major customers like Apple, Google, and NVIDIA to secure domestic chip supply and potential price advantages. He also urges adoption of advanced technologies and tariffs on imported chips to boost demand. Some of his suggestions align with current U.S. policies and Intel’s existing technology investments.

Intel’s foundry ambitions face disruption as three key manufacturing executives are reportedly retiring: Kaizad Mistry, Ryan Russell, and Gary Patton. Mistry and Russell oversaw process technology development, while Patton focused on design platform solutions for foundry clients. These departures create a knowledge gap in Intel’s manufacturing roadmap, crucial for attracting external customers to Intel Foundry Services (IFS). Intel is also reportedly reviewing its technology development structure, potentially streamlining capacity planning and reducing engineering headcount.

Xiaomi Group is gaining recognition and expanding its smart home capabilities. It was named a “Top 100 Enterprise in China’s Light Industry of Science and Technology” and designated an “Artificial Intelligence Enterprise” in Wuhan. Xiaomi’s first dedicated smart home appliance factory in Wuhan, its third major smart manufacturing facility, is nearing completion and will begin mass production by the end of the year, starting with air conditioning products. This factory will enable Xiaomi to independently develop and manufacture its appliances.

Benchmark Electronics appoints Glynis A. Bryan, former CFO of Insight Enterprises, to its Board of Directors. Bryan brings over 20 years of financial experience, including strategic growth and M&A expertise. She also serves on the boards of Ameriprise Financial, Pinnacle West Capital, and WESCO International. Benchmark’s leadership welcomes her financial acumen and strategic oversight to enhance decision-making and long-term goals.

CATL has commenced mass production of its 587Ah battery cells, heralding a new era in energy storage. These cells feature high energy density (435Wh/L), a 95.5% RTE, and a 25-year lifespan, along with enhanced safety measures. Integrated with the “Tianheng” system, they improve system returns and reduce self-discharge related malfunctions. Production occurs at CATL’s Jining “Lighthouse Factory,” emphasizing sustainability and advanced manufacturing.

Commerce Secretary Howard Lutnick testified before Congress, indicating potential renegotiations of the Biden administration’s semiconductor subsidies under the CHIPS Act due to concerns of overgenerosity. The administration is reevaluating grants, aiming for better returns on investment, and hinting at cancellation of some deals. TSMC’s increased investment commitment is cited as a positive example. The industry anticipates the impact of revisions impacting future semiconductor independence.