2025-05-21: Xiaomi Unveils First In-House Smartphone Chip and SUV Amid Push for Tech Autonomy

DRAM and High-Bandwidth Memory Demand Fuels Revenue Surge and Strategic Moves in AI Sector

May 20, 2025

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Good Morning,

Below are some of the most important developments in the artificial intelligence, semiconductors, and cloud computing sectors in Asia today.

▪️ Taiwan: Pingtung Emerges as Hub for Taiwan’s Expanding Southern Semiconductor Supply Chain
Taiwan is bolstering its semiconductor industry by developing advanced manufacturing nodes, expanding infrastructure, and reinforcing its supply chain in the southern region.

▪️ Taiwan: AI-Fueled Growth Drives Record Expansion in Taiwan’s High-Tech Manufacturing Sector
Taiwan’s manufacturing sector has achieved robust growth fueled by surging global demand for artificial intelligence, high-performance computing and cloud data services.

▪️ China: Xiaomi Unveils First In-House Smartphone Chip and SUV Amid Push for Tech Autonomy
Xiaomi will unveil its first self-developed smartphone chip and its inaugural sport utility vehicle at a May 22 product launch event.

▪️ China: Lenovo Accelerates AI Agent Innovation and Edge Computing to Drive Productivity and Global Market Growth
Lenovo is pioneering AI-driven intelligent agents and edge computing architectures to transform routine tasks into opportunities for creative innovation.

▪️ China: Huawei Unveils HarmonyOS Laptops, Marking Its Strategic PC Market Entry
Huawei has entered the personal computer market with two laptops powered by its self-developed HarmonyOS.

▪️ South Korea: HancomWITH Drives Global Security Innovation with Quantum-Resistant and AI Technologies
Advances in artificial intelligence and quantum computing are reshaping the future of military security technology.

▪️ South Korea: DRAM and High-Bandwidth Memory Demand Fuels Revenue Surge and Strategic Moves in AI Sector
South Korean and global technology leaders are capitalizing on surging DRAM and high-bandwidth memory demand to drive revenues and secure strategic partnerships in the evolving AI landscape.

▪️ South Korea: AI-Driven Transformation Accelerates Across South Korea’s Retail Broadcasting and Marketing Industries
Artificial intelligence is reshaping retail broadcasting, content creation, and customer engagement across South Korea’s commerce and marketing sectors.

▪️ Taiwan: Nvidia Unveils Taiwan Headquarters and AI Supercomputing Center Amid COMPUTEX Developments
Nvidia is expanding its footprint in Taiwan with a new headquarters and collaborative plans to build a large-scale AI supercomputing center.

▪️ China: CATL Leads Hong Kong IPO Market Revival with Record-Breaking Listing in 2025
The resurgence of Hong Kong’s IPO market in 2025 reflects renewed regulatory support, improved market mechanisms and a surge in liquidity.

For more information on these developments, please see the full report below.

Thanks for reading,

Rodney J Johnson

Today's Developments

Widely Reported On Issues of Importance

Pingtung Emerges as Hub for Taiwan’s Expanding Southern Semiconductor Supply Chain

Taiwan is bolstering its semiconductor industry by developing advanced manufacturing nodes, expanding infrastructure, and reinforcing its supply chain in the southern region.

On May 19, 2025, Premier Toh Jung-tai attended the Pingtung Technology Semiconductor Supply Chain Entry Launch Ceremony and noted that Pingtung County has secured the essential resources for high-tech growth—water, electricity, land, talent, and manpower.
He said that welcoming supply chain manufacturers to Pingtung Science Park will stimulate domestic demand and accelerate Taiwan’s high-tech sector. He asked the Ministry of Transportation to expedite planning for the Second East-West Expressway between Kaohsiung and Pingtung, with construction set to begin at the end of 2026, and announced plans to extend the high-speed rail to Pingtung. These projects will create a “Greater Southern New Silicon Valley” spanning Chiayi, Tainan, Kaohsiung, and Pingtung, serving both as a gateway to the south and a platform for global outreach.

Since its groundbreaking two years ago, Pingtung Science Park has attracted significant investment.
Premier Toh praised the collaboration between Pingtung and Kaohsiung to strengthen the semiconductor supply chain and position the park as a critical node in Taiwan’s southern semiconductor corridor. The government supports small and medium-sized enterprises in integrating into the industry’s vertical ecosystem—from integrated circuit design through packaging and testing—preserving Taiwan’s technological edge. Pingtung’s location near the High-Speed Rail station and related infrastructure further enhances its appeal to investors.

Colleges are developing programs to train professionals in high-tech and artificial intelligence fields, and the Ministry of Economic Affairs will launch initiatives to cultivate AI application specialists who will guide SMEs through digital transformation and drive innovation across the sector.

TSMC has established a 2 nm process plant in Nanzih, completing a more integrated local supply chain and enabling Pingtung to access international markets.
This addition strengthens Taiwan’s manufacturing capabilities and reinforces the region’s role in global semiconductor production.

To ensure steady industrial growth, the government has implemented strategies to manage water and electricity.
After decommissioning Unit 2 of the No 3 Nuclear Power Plant on May 17, Taiwan maintained a high peak reserve capacity. Officials plan to replace the lost generation with new gas-fired units and alternative power sources to secure sufficient electricity through the end of 2025.

The Pingtung supply chain zone will span approximately 28 hectares dedicated to wafer fabrication and related processes.
TSMC has secured commitments from ten supply chain manufacturers to establish operations there, projecting industrial benefits exceeding NT$140 billion. The project aims to enhance Taiwan’s factory supply chain capabilities and support the global semiconductor industry through collaboration and certification initiatives.

Premier Toh reassured manufacturers that Taiwan faces no significant shortages in water, electricity, land, or talent and affirmed the government’s commitment to meeting industry needs and preventing manpower constraints, reinforcing confidence among supply chain participants.

After his remarks, Premier Toh joined key officials and industry leaders in signing a wafer modeling board, a symbolic gesture of their collective commitment to developing Pingtung’s semiconductor supply chain and building the region into a high-tech industry hub.

IMPACT ANALYSIS

From this Development, various impacts could cascade through the system, to a lesser or greater extent, depending on the severity and criticality of the shocks.

BOTTOM LINE

The launch of TSMC’s 2 nm fabrication facility in Nanzih lowers Taiwan’s minimum domestic node size and fuels a surge in patent filings per capita, which should strengthen the country’s share of standards-essential patents and raise the premium on its high-value-added chip exports.
The commitment by ten supply-chain manufacturers to invest NT$ 140 billion in a 28-hectare wafer-fabrication zone in Pingtung accelerates the integration cadence, shortens supplier delivery times, reduces average days-sales-outstanding, and fortifies Taiwanese firms’ export order books, paving the way for increased market share abroad.
The fast-tracking of the Second East-West Expressway and the high-speed rail extension to Pingtung enhances the integrated transport master plan, driving up the infrastructure-quality index, trimming one-way commute times, boosting labour-force participation, and prompting upward revisions to Taiwan’s potential GDP growth trajectory.
Decommissioning Unit 2 of the No. 3 nuclear plant, coupled with the rapid rollout of new gas-fired units and alternative energy sources, secures a high grid reserve margin, minimizes blackout hours, averts industrial feedstock shortages, and enables semiconductor fabs to sustain elevated capacity utilization.
A nationwide surge in AI and high-tech talent—spurred by university and vocational curricula in advanced semiconductor design and Ministry-led AI application specialist programs—deepens the STEM pipeline, elevates patent-to-population ratios, accelerates patent-to-product conversion, and lifts total-factor productivity toward global frontier levels.
Widespread enterprise AI and digital-tool adoption among SMEs raises workforce digital literacy, produces above-average three-year TFP growth deviations, and shifts Taiwan’s overall productivity closer to the global frontier, strengthening competitiveness in both manufacturing and services.
Premier Toh’s “Greater Southern New Silicon Valley” vision, anchored by state-backed infrastructure investments, expands market-size projections, attracts higher FDI net inflows and venture-capital deal flow, fosters the emergence of new unicorns, and fuels an upward trajectory on the Global Innovation Index.
Enhanced multimodal connectivity linking Pingtung Science Park with Kaohsiung’s container terminals and expressway network boosts TEU throughput, elevates supply-chain visibility, cuts disruption days, and shortens door-to-door export lead times, reinforcing Taiwan’s standing as a reliable high-tech supplier.
The creation of dedicated wafer-fabrication zones, on-site utilities, and bonded logistics centers in Pingtung lifts Taiwan’s infrastructure-quality score and logistics performance, drives export-basket diversification by lowering concentration, and delivers gains in real export market share across a broader spectrum of high-value-added products.

References for this Development

小米自研3奈米晶片傳台積代工

Xiaomi's self-developed 3nm chip is reportedly manufactured by TSMC

Yahoo Finance | Local Language | News

出席屏科半導體供應鏈進駐啟動典禮卓揆肯定有助擴大內需、帶動臺灣高科技發展

Premier Zhuo attended the launching ceremony of the Pingtung Semiconductor Supply Chain and affirmed that it would help expand domestic demand and drive the development of Taiwan's high-tech industry.

Executive Yuan | Local Language | Government

台積領軍屏科建首座半導體供應鏈專區

TSMC leads the way in building the first semiconductor supply chain zone

Liberty Times Net | Local Language | News

台積電寶山廠區年底量產新竹縣府承諾支持建設

TSMC Baoshan plant to start mass production by the end of the year, Hsinchu County Government pledges to support construction

Yahoo Finance | Local Language | News

Qualcomm CEO highlights ties with TSMC, Taiwan ODMs

Taipei Times | English | News

AI-Fueled Growth Drives Record Expansion in Taiwan’s High-Tech Manufacturing Sector

Taiwan’s manufacturing sector has achieved robust growth fueled by surging global demand for artificial intelligence, high-performance computing and cloud data services.

Manufacturing output in Taiwan reached NT$4.8984 trillion in the first quarter, marking a 10.72 percent year-on-year increase and the fifth straight quarter of expansion.
Strong demand for AI, HPC and cloud data services spurred continued investment in semiconductor fabrication, advanced electronics and related high-tech manufacturing facilities.

Within the information electronics industry, electronic components posted a record output of NT$1.7375 trillion, up 23.77 percent year-on-year.
Integrated circuits led this surge as demand for AI and HPC applications propelled 12-inch wafer foundry production up 29.65 percent. Meanwhile, TFT-LCD panel orders boosted panel and component output by 6.10 percent.

Output in the computer electronics and optical products industry climbed to NT$447.7 billion, a 32.99 percent increase reflecting strong sales of servers, networking equipment and other systems for data centers and cloud providers.
Machinery and equipment manufacturers, closely tied to semiconductor capital expenditures, raised their output by 10.32 percent as chipmakers expanded capacity and upgraded fabrication tools.

In contrast, traditional manufacturing sectors declined: the basic metal industry fell by 10.65 percent, the automobile and parts sector by 10.30 percent and chemical materials and fertilizer production by 1.25 percent.
Cautious domestic demand and intensified global competition in established heavy industries drove these downturns.

The overall manufacturing production index rose by 12.40 percent year-on-year, reflecting broad-based strength across high-technology supply chains despite ongoing trade uncertainties and geopolitical tensions.
Manufacturers expect continued advances in AI, HPC and cloud data infrastructure to bolster Taiwan’s information electronics and semiconductor industries.

References for this Development

研華強化物聯網領域能量攜手高通合攻AI邊緣運算

Advantech strengthens its capabilities in the IoT field and joins hands with Qualcomm to develop AI edge computing

Liberty Times Net | Local Language | News

AI factories the next revolution: Asustek

Taipei Times | English | News

AI浪潮帶動台灣光通訊零組件廠穩供貨

The AI wave drives Taiwan's optical communication component manufacturers to maintain stable supply

Liberty Times Net | Local Language | News

Manufacturing output rises for fifth quarter in a row to NT$4.898 trillion

Taipei Times | English | News

HSBC conference explores the potential of AI, ETFs and trade in Taiwan’s capital market