Semiconductor

Alibaba’s shares rose after reports of a deal with China Unicom to use its AI chips, boosting China’s domestic semiconductor efforts. China Unicom will deploy Alibaba’s Pingtouge AI accelerators for a large-scale data center project, also using chips from MetaX and Biren. This move aligns with China’s push for self-reliance amidst geopolitical tensions and export restrictions on advanced AI chips, particularly as Nvidia faces regulatory hurdles. Alibaba is developing new AI chips and operates a major cloud platform, further emphasizing its role in China’s AI landscape.

Alibaba is developing a new AI inferencing chip amidst US-China trade tensions and restrictions on Nvidia exports. This move is part of a broader effort by Chinese tech companies to create domestic chip solutions. Alibaba will use the chip to enhance its cloud infrastructure, offering computing power to customers. This complements, rather than replaces, its reliance on vendors like Nvidia. Fueled by AI-related products, Alibaba’s cloud division saw significant revenue growth. Other Chinese firms, including Baidu and Huawei, are also developing proprietary semiconductors.

Intel received a $5.7 billion U.S. government investment as part of a White House initiative taking a 10% equity stake. CFO David Zinsner also suggested exploring outside investment for Intel’s foundry business, a key growth area. While Q2 results beat expectations, shares dropped due to foundry capital intensity concerns. Intel cautioned that the deal could face “adverse reactions” from stakeholders, including investors and foreign governments, and increased scrutiny. The White House acknowledges the deal is still being finalized.

Cambricon, a Chinese semiconductor firm, reported significant revenue and profit growth in the first half of the year, driven by the increasing demand for AI chips. This surge reflects China’s strategic push for domestic AI chip alternatives to Nvidia amidst potential US export restrictions. While Nvidia still dwarfs Cambricon in overall revenue, the Chinese government’s support and diversified sourcing strategies are boosting Cambricon’s prospects. The company is focused on improving its software to compete more effectively. However, export controls pose a challenge to long-term technological advancement.

Entegris is investing an additional $700 million in U.S. semiconductor R&D, bringing its total investment to $1.4 billion. This investment will support R&D projects within its Materials Solutions and Advanced Purity Solutions divisions including transforming the Aurora, Illinois site into a U.S. Technology Center. This investment aims to strengthen the domestic semiconductor ecosystem and boost Entegris’ product performance and time-to-market. These investments also allow for continued leadership in advanced materials solutions.

In a CNBC interview, AMD CEO Lisa Su discussed topics ranging from export controls and AI’s transformative potential to competing with Nvidia and the Silicon Valley talent war. She playfully addressed the recurring question about her relationship with Nvidia’s Jensen Huang, revealing they are cousins through their maternal family lines. Su also emphasized AMD’s strategy of offering diverse solutions beyond direct competition with Intel and Nvidia. Her vision aims to showcase AMD’s unique capabilities to the world.

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.

SMIC’s Q2 revenue reached $2.209 billion, a 16.2% YoY increase despite a slight QoQ dip. Net profit fell 19% YoY to $132.5 million, but capacity utilization rose to 92.5%. The average selling price (ASP) increase was attributed to high capacity utilization, not proactive price hikes. SMIC maintains a consistent stance against initiating price wars and will consider following competitors’ price increases if they occur. SMIC’s ASP remains significantly lower than TSMC’s due to its focus on less advanced nodes.

Intel released a statement affirming its commitment to U.S. national and economic security amid reports of calls for CEO Lip-Bu Tan’s resignation. The company highlighted its significant investments in U.S. semiconductor R&D and manufacturing, including a new fab in Arizona. The statement follows alleged pressure from sources close to former President Trump. Tan, Intel’s first CEO of Chinese descent, was appointed in March 2025 and has a strong background in technology and investment. Intel is reportedly engaging with U.S. government officials to address concerns.

Gree Electric faces investor scrutiny over its chip business, despite significant R&D spending. Concerns arose from comparing Gree’s chip subsidiary’s small registered workforce to industry peers. Gree responded, stating its chip team nears 1,000 employees and clarified previous data discrepancies. Gree entered the chip domain in 2015, focusing on MCUs, smart home chips, power devices, and silicon carbide wafer manufacturing. Chairwoman Dong Mingzhu defended the company’s chip venture as a strategic move towards self-reliance and potentially providing semiconductor solutions to others.