Erudite Asia

AI boosts first-quarter revenues of two power supply giants Delta Electronics achieved a remarkable first-quarter revenue of NT$118.919 billion, marking a new quarterly record. This success is attributed to strong shipments of AI server power products, with consolidated revenue in March alone reaching NT$43.444 billion, a monthly increase of 14.06% and an annual increase of 37.58%. The growth reflects the robust demand for high-performance computing equipment in data centers, with the server power business accounting for approximately 19% of Delta's total revenue. Analysts are optimistic about the launch of next-generation GPU servers expected later in the year, potentially increasing this figure to 20-30%. Additionally, Delta has been recognized as a qualified supplier by Nvidia for its new “liquid-to-liquid” cooling device. Lite-On Technology also reported strong first-quarter results, with revenue reaching NT$36.417 billion, an increase of 26.56% compared to the previous year. The company experienced a monthly revenue of NT$13.353 billion in March, up 22.31% from February and 23.81% year-on-year. Cloud and IoT products made up 43% of Lite-On's revenue, with approximately 50% year-on-year growth in cloud computing and high-end server shipments. General Manager Chiu Sen-bin highlighted the good performance of core operations, driven by accelerated shipments in cloud computing and optoelectronic semiconductors. Lite-On anticipates that AI-related product revenue will comprise about 14-15% of its total this year. Both Delta and Lite-On are mindful of the impact of U.S. reciprocal tariffs. Delta Electronics is actively monitoring the supply chain and remains in close communication with customers, confirming that current orders for AI server-related products are unaffected. Meanwhile, Lite-On has diversified its global production bases to adapt to customer demands proactively, acknowledging that the tariff situation poses challenges for the entire industry. #AI #Taiwan https://lnkd.in/gUgGAmgi

Etron's Lu Chaoqun estimates that the impact of US tariffs will be clear in three weeks: AI is a business opportunity for Taiwan Yuchuang Chairman Lu Chaoqun stated that the effects of the US tariff policy remain unclear, but a clearer picture is expected within three weeks to a month. He emphasized that artificial intelligence (AI) represents a significant business opportunity for Taiwan, urging manufacturers to capitalize on this potential. Lu made these comments during a book launch event attended by various semiconductor industry leaders, where US tariff policies and their implications were a central topic. Lu noted the current chaos in the semiconductor industry due to US tariffs, with some manufacturers struggling to procure goods while others are reducing orders. He highlighted Taiwan's advantages over the US in terms of mass production capabilities, available funding, and skilled talent, suggesting that Taiwanese companies should actively pursue opportunities in the AI market. Former ITRI President Shih Chin-tai remarked on the historical context of US claims that Taiwan has "stolen" American chips, advocating for a thoughtful approach regarding the future of Taiwan's semiconductor industry to avoid past mistakes. Chen Tien-chih, former president of the Chung-Hua Institution for Economic Research, reinforced that Taiwan's semiconductor development is a product of decades of local engineering efforts. He stressed the importance of global production strategies for Taiwanese manufacturers, noting that while investments in the US will depend on customer needs, Taiwan remains the most efficient production base. #AI #Taiwan https://lnkd.in/gMCZDJdy

Minister Ahn Deok-geun: “Semiconductor support measures to be prepared promptly”… Response to US tariff measures The Ministry of Trade, Industry and Energy in South Korea is preparing a comprehensive support plan for the semiconductor industry in response to recent US tariff measures. The government aims to bolster investment incentives, address export challenges, and enhance the semiconductor ecosystem following a meeting led by Minister Ahn Deok-geun attended by key figures from the semiconductor sector on April 10th. The US has announced a 25% tariff on South Korean products, which includes a basic tariff of 10% and a reciprocal tariff of 15%. However, this will be postponed for 90 days for certain countries, including Korea, which means initially only the basic tariff will apply. The South Korean semiconductor industry believes that the immediate impact of these tariffs will be limited due to challenges in U.S. domestic production and the significant market share of Korean companies in high value-added segments. Industry representatives have urged the government to engage in negotiations with the United States to mitigate uncertainties in the trade environment and to enhance support mechanisms, such as increasing financial backing for infrastructure and improving regulations. The government plans to rapidly introduce measures to aid exports, support investment incentives, and strengthen the semiconductor ecosystem, including initiatives to lessen the import cost burden for materials and parts. To further enhance the semiconductor infrastructure, the government is set to increase support for essential facilities and pursue additional financial measures. Regulatory reforms such as easing installation obligations for energy facilities are also on the agenda. Moreover, the construction of the Trinity Fab, an R&D and training facility with a 900 billion won investment, is scheduled to advance. The government will also collaborate on a major AI semiconductor development project aimed at several key sectors, with a total budget of 1 trillion won. Minister Ahn emphasized the importance of consultations with the U.S. and the necessity of supporting South Korea’s semiconductor industry amid global competition. #Semiconductors #SouthKorea https://lnkd.in/g2PbBqnN

President Donald Trump stated that he informed the Taiwan Semiconductor Manufacturing Company (TSMC) it would incur a tax of up to 100% if it chose not to construct its factories in the United States. This announcement came during a Republican National Congressional Committee event, where he criticized former President Joe Biden's administration for granting TSMC's U.S. unit $6.6 billion for semiconductor production in Phoenix, Arizona, claiming that semiconductor companies do not require such financial assistance. Trump emphasized that his approach was to threaten substantial taxes rather than providing incentives, stating, "TSMC, I gave them no money; all I did was say, if you don't build your plant here, you're going to pay a big tax." TSMC, recognized as the world's largest contract chipmaker, announced in March that it plans to invest $100 billion in the U.S., which includes the construction of five additional chip facilities in the coming years. Additionally, earlier reports indicated that TSMC might face penalties exceeding $1 billion related to a U.S. export control investigation concerning a chip it produced that was used in a Huawei Technologies AI processor. TSMC declined to comment on these matters. #Semiconductors #Pakistan https://lnkd.in/gSa6cs_Q

MarkVision, large-scale update of 'MarkAI'… Catching 'unauthorized sales' that destroys the brand ecosystem MarkVision has implemented a significant update to its AI-based price monitoring solution, MarkAI, aimed at curbing unauthorized sales that undermine brand pricing integrity. Announced on April 9, 2025, this update enhances the ability to track compliance with pricing policies across major domestic e-commerce platforms while also quantifying losses incurred from unauthorized sales. The surge of online distribution channels and lower barriers for individual sellers have led to a rise in unauthorized sellers, who often sell products at steep discounts, complicating the tracking of their origin. The updates include features that assess average product prices against appropriate pricing, automate reporting and sanctioning of suspicious sellers, and quantify the impact of sanctions on unauthorized sales. This is particularly relevant as sellers with formal contracts struggle against the pricing tactics of unauthorized sellers, resulting in recurrent sales losses for brands. MarkVision's solutions aim to systematically filter out these unauthorized players and restore effective price management within the larger distribution ecosystem. The initiative is particularly beneficial for sectors with high price sensitivity, such as food and beverages. Several companies, including Lotte Chilsung and Hangil Trading, have already adopted MarkVision's price monitoring service. CEO Lee In-seop emphasized the goal of this enhancement is to help businesses safeguard their brand value and trust while striving for a fair e-commerce environment that benefits both brands and consumers. #AI #SouthKorea https://lnkd.in/gM8pBFb5

The South Korean government is taking steps to support its chip industry in response to the United States' planned tariffs on semiconductor imports. Industry Minister Ahn Duk-geun announced that measures will be introduced soon to alleviate the impact of these tariffs, which were reaffirmed by US President Donald Trump. During a meeting with local semiconductor manufacturers, industry officials urged the government to negotiate actively with the US and to implement strategies to minimize the tariffs' effects. While officials believe the proposed tariffs may have a limited impact due to the US's low production capacity and South Korea's strong market share in high-value products like high bandwidth memory, there are concerns about the uncertainties in the global trade environment that could negatively affect the local economy. Potential government support measures may include tariff response vouchers and initiatives to reduce import reliance on materials and components. Additionally, the South Korean government is considering enhancing domestic utilization of Korean-made chips in national projects, particularly in artificial intelligence. To foster corporate investment in the semiconductor sector, stronger incentives, financial support for semiconductor clusters, and regulatory improvements are under review. Efforts will also be focused on building fabrication plants and launching large-scale R&D projects, including significant investment in on-device AI chips aimed at industries such as automotive and robotics. Minister Ahn emphasized the need for collaboration between the public and private sectors to tackle trade and supply chain risks while maintaining ongoing negotiations with the US. #Semiconductors #SouthKorea https://lnkd.in/gm5Jf5Fw

An employment discrimination lawsuit against Taiwan Semiconductor Manufacturing Co (TSMC) may soon be expanded following a federal court hearing in San Jose, California. The motion aims to add 15 plaintiffs from Arizona to the existing case, which was refiled as a class action with 13 plaintiffs in November. This lawsuit centers on allegations of discrimination against non-East Asian employees, coinciding with TSMC's significant investments in building additional manufacturing facilities in Arizona. The lawsuit initially filed in August last year, brought forth by Deborah Howington, claims that TSMC, which has predominantly hired Taiwanese and Chinese workers, fosters a hostile work environment for individuals of other nationalities. The complaint details instances of verbal abuse and discriminatory practices in hiring and employment decisions. TSMC has denied these allegations, asserting that the claims have no merit. During the court hearing, Howington's attorney argued that the inclusion of the 15 additional plaintiffs would provide vital evidence to support claims of systemic discrimination. In contrast, TSMC's lawyer contended that it was inappropriate for the Arizona plaintiffs to file their claims in a California court and emphasized the need to expedite the trial process. Judge Virginia DeMarchi acknowledged the complexities of the case as new plaintiffs sought to join while also filing individual claims. #Semiconductors #Taiwan https://lnkd.in/gPEceWw4

On April 10, 2025, China's Ministry of Commerce stated that all commercial arrangements, particularly in relation to technology exports, must align with Chinese laws and require government approval. The ministry emphasized its commitment to safeguarding the legitimate rights of businesses and fostering a market-oriented, law-based, and international business environment. These comments came in response to the U.S. government extending the deadline for Chinese company ByteDance to sell its U.S. operations of the TikTok app. The ministry criticized practices that violate market principles, particularly those that expropriate without compensation and negatively impact business rights. #CloudComputing #China https://lnkd.in/gkTecRx7

Economics Minister Kuo Jyh-huei defended Taiwan Semiconductor Manufacturing Co. (TSMC) amid reports of a potential fine related to an investigation by the U.S. Department of Commerce (DOC). Kuo emphasized that TSMC complies with legal standards in all countries where it operates, noting that the Ministry of Economic Affairs has not received confirmation of any fines. This statement follows a Reuters report suggesting TSMC could face penalties exceeding $1 billion after a chip linked to the company was discovered in Huawei's Ascend 910B AI processor, which is produced by a company that has been restricted by the U.S. since 2019. The report indicated that TSMC's scrutiny began when a Canadian tech firm identified a TSMC chip in a Huawei product, prompting an inquiry into possible violations of export control regulations. A researcher noted that TSMC had previously manufactured nearly 3 million chips matching designs related to Huawei, suggesting that making these chips was inappropriate given the risk of diversion to a restricted entity. TSMC has not supplied Huawei since September 2020 and stated its commitment to adhering to export controls. In addition, TSMC has announced significant investments in the U.S., pledging $100 billion to establish new facilities in Arizona. This comes amid heightened trade tensions, including tariffs imposed by the U.S. on countries with substantial trade surpluses. Although TSMC did not address comments from President Trump regarding potential taxes on its U.S. operations, Kuo expressed confidence in TSMC's commitment to its investments, highlighting the complementary technological capabilities between Taiwan and the U.S. #Semiconductors #Taiwan https://lnkd.in/gGaZSc6A

'Semiconductor kingpin' Siltron sale rumors… SK's reason for seeking cash SK is exploring the sale of its subsidiary SK Siltron, valued at 5 trillion won, as part of a strategy to secure cash by restructuring its semiconductor businesses. Following the recent sale of SK Specialty, SK Corp. announced on April 9 that it is reviewing plans for selling shares of SK Siltron, excluding the 29.4% stake held by Chairman Choi Tae-won. The goal is to raise approximately 3 trillion won to support the company’s financial position. SK Siltron, acquired from LG in 2017, specializes in manufacturing semiconductor wafers and reported sales of 2.1268 trillion won and an operating profit of 315.5 billion won last year. Its revenue from transactions with SK Hynix has been steadily increasing, signaling a strong relationship between the two entities. In 2022, SK established a 'Semiconductor Committee' aimed at creating synergies among its semiconductor affiliates. However, the recent divestment of SK Specialty, which generated significant annual dividends, suggests a shift in strategy amid financial struggles. Last year, SK Co., Ltd. recorded a net loss of 745.9 billion won, largely due to a significant impairment loss across several subsidiaries, including investments in hydrogen and electric vehicle sectors. These impairments and the overall decline in asset values have pressured SK's finances. While SK's dividend income fell sharply to 768.5 billion won, the company anticipates an increase in IT service sales, particularly from contracts with SK Hynix, due to rising facility investments. Despite losses, SK has decided to increase its dividends this year, benefiting key shareholders significantly. #Semiconductors #SouthKorea https://lnkd.in/gFn-8pYt