semiconductors

Global semiconductor stocks surged after Nvidia announced a $100 billion investment in OpenAI, signaling a strong commitment to AI infrastructure. TSMC and SK Hynix saw significant gains. European markets mirrored the positive momentum, with STMicro and Infineon rising. However, ASM International’s revenue shortfall impacted other equipment manufacturers like ASML. Analysts remain bullish on the long-term outlook for chip equipment vendors due to strong demand for AI-related technologies.

China has reportedly expanded restrictions on Nvidia chips, impacting the RTX Pro 6000D AI chip in addition to the H20 GPU. This move signals growing confidence in China’s domestic semiconductor industry and a potential negotiation tactic with the U.S. Huawei is emerging as a domestic force with its Ascend chips. Experts view these actions as a strategic attempt to gain leverage in trade negotiations, influencing U.S. policy on export controls. The U.S. may re-evaluate its approach balancing security concerns with economic interests.

House Speaker Mike Johnson criticized China as an “adversary” after reports surfaced of Beijing instructing tech firms to stop buying Nvidia’s AI chips, including the RTX Pro 6000D. This move signals China’s growing confidence in its domestic semiconductor industry and its push for self-reliance, substituting Nvidia’s products with alternatives like Huawei’s Ascend 910B. Nvidia’s CEO expressed disappointment, and analysts note potential revenue losses for U.S. chipmakers, highlighting the escalating conflict over AI chip access. China’s strategy may aim to bolster its domestic AI chip development.

The U.S. government revoked TSMC’s export waiver (VEU status) for its Nanjing, China, facility, requiring individual licenses for U.S.-origin chipmaking equipment shipments. SK Hynix and Samsung also lost VEU privileges. This aims to close a “Biden-era loophole” on foreign-owned fabs in China and tighten control over technology flows, limiting China’s chip production capabilities and ability to expand their supply chain footprint. While TSMC anticipates limited financial impact, this move underscores a broader U.S. strategy to reshore manufacturing and restrict China’s semiconductor advancement.

Ambarella (AMBA) shares jumped 20% after Q2 earnings beat expectations. Adjusted earnings were 15 cents per share versus the expected 5 cents, with revenue at $96 million against the projected $90 million. The chip designer anticipates Q3 revenue between $100 million and $108 million, exceeding estimates. Ambarella also raised its fiscal year revenue growth outlook to 31-35%, driven by strong demand for its edge AI solutions in portable video, drones, and edge infrastructure. CEO Fermi Wang emphasized the company’s successful strategic investment in edge AI R&D.

Former President Trump intends to impose tariffs of approximately 100% on imported chips and semiconductors, but would waive them for companies that manufacture in the U.S., incentivizing domestic production. Tariffs could also be levied on products containing semiconductor chips. This policy aims to reshape supply chains and bolster U.S. self-reliance in critical technology. Apple, with its existing U.S. investments and manufacturing initiatives, appears strategically positioned amidst these potential changes, potentially employing 20,000 more in the US.

**Summary:** The US will impose 25% tariffs on all Japanese and South Korean imports starting August 1. This threatens global tech supply chains, especially memory chips where both nations dominate. Key exporters like Samsung, SK Hynix, Canon, Tokyo Electron, Renesas, and operations of US firms Micron/Western Digital face significant impact. Strict anti-circumvention rules and warnings against retaliation were issued. Companies manufacturing these goods within the US gain tariff exemption via expedited approvals.

SEALSQ Corp has acquired a 28.30% stake in WeCan Group SA, a Swiss blockchain innovator. This strategic investment aims to accelerate the development of quantum-resilient, blockchain-based security solutions for finance, IoT, and Web 3.0. The partnership will integrate post-quantum cryptography, PKI, and blockchain compliance platforms, enhancing KYC/KYB solutions, fortifying IoT devices, and expanding decentralized identity offerings.

Wolfspeed, a SiC semiconductor leader, filed for Chapter 11 bankruptcy to restructure and reduce its $6.5 billion debt. The company secured $275 million in financing and aims to exit bankruptcy by Q3. Facing headwinds including reduced EV demand, high cash burn, and delayed government funding, Wolfspeed is restructuring to focus on high-growth sectors while cutting costs and shedding operations. This move highlights the semiconductor industry’s volatility, particularly impacting EV and renewable energy.

The United States has reportedly restricted exports of crucial technologies to China, impacting key sectors like aerospace and semiconductors. The restrictions, impacting the development of the COMAC C919 aircraft, are seen by Beijing as an overreach of national security concerns. China’s Ministry of Foreign Affairs condemned the US actions, emphasizing its commitment to international norms in its export controls and advocating for dialogue and cooperation.