According to a TechInsights report on April 28, the uncertainty of tariff policies has significantly affected the global semiconductor market. If the U.S. tariff rate on China increases to 30-40%, the market size is projected to be $736 billion this year and $699 billion next year. If the tariff rate exceeds 40%, the market size will drop to $696 billion this year and $557 billion next year, with a potential decline of 34% in 2026. In addition, smartphone, personal computer, and semiconductor customers are expected to see increased inventory in the first half of this year, while consumer electronics shipments are likely to slow down.
On April 30, Digitimes reported that major chip manufacturers in Europe and the U.S. have recently released their financial reports. Texas Instruments (TI), a bellwether in the analog chip market, noted that the automotive and industrial control chip markets have shown signs of recovery and are expected to gradually return to growth, with the growth effect from specification upgrades being particularly significant. Meanwhile, chip manufacturers in Taiwan have also observed a continuous increase in the use of automotive chips, and the industrial control market is also steadily growing, driven by artificial intelligence technology. However, despite the positive market outlook, tariffs remain the biggest uncertainty facing the industry, potentially having a significant impact on the chip supply chain and costs.
According to a report by the Korea Economic Daily on April 29, Samsung Electro-Mechanics’ sales and operating profit both increased year-on-year in the first quarter of 2025, thanks to the expanded supply of high-value multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) and electronic devices. The high-voltage MLCCs developed by Samsung Electro-Mechanics have been applied to the core device of autonomous driving, the LiDAR. In the first quarter, the sales of the MLCC division increased by 19% year-on-year, reaching 12.162 trillion won. The company stated that the increased demand for high-value MLCCs from industries such as AI servers and advanced driver-assistance systems (ADAS) has driven sales growth. Looking ahead to the second quarter, Samsung Electro-Mechanics expects the market demand for high-value products such as MLCCs for AI servers and packaging substrates for AI accelerators to continue to expand and plans to focus resources on developing high-end products.
On April 31, it was reported that Winbond’s losses narrowed in the first quarter of 2025. Chairman Wu Min-chiu said that the company’s performance in the second quarter exceeded expectations, but the key to the full-year operations still depends on the market trend in the second half of the year, especially whether the traditional peak season in the third quarter arrives as expected. The company expects a more significant improvement in inventory reduction in the second half of the year and maintains its goal of turning a profit for the year.
On April 28, Karl Breidenbach, Vice President of Boston Consulting Group (BCG), said that China’s export controls on rare earths may lead to production delays and cost increases in the semiconductor industry between 2025 and 2026. If the relevant restrictions continue to tighten, semiconductor companies that have not diversified their supply sources may face issues such as production slowdowns, increased costs, and reduced wafer output.
On April 29, Quanta Chairman Lin Pai-li said that the company is rushing to ship AI servers and is optimistic about continued order growth for the year, which is expected to exceed last year’s performance, with an even better outlook for 2026. He believes that the manufacturing industry is gradually recovering, but uncertainties still exist in the market, and the progress of the U.S.-China tariff war needs to be closely monitored. Speaking at a forum held by National Taiwan University, Lin Pai-li mentioned that AI technology is creating an entirely new landscape, and the entire industry is still in flux. He emphasized that the impact of the AI revolution is greater than that of the previous industrial and digital revolutions, and despite market fluctuations due to the tariff war, Quanta will still achieve success.
