ComputInsights #8 – Weekly Computing Market Insights

Market Growth

New Chips Use Light to Compute, Offering Faster, Cheaper AI

Lightelligence and Lightmatter have unveiled photonic chips that use laser light to perform complex math, marking a major breakthrough in computing. These processors can run AI tasks more efficiently than traditional chips, addressing performance plateaus as Moore’s Law slows. Built with existing chip manufacturing processes, these light-powered devices could soon power data centers and revolutionize AI computing.

Trump Signals National Security Probe on Chinese Semiconductors, More Tariffs Ahead

President Trump announced a national security investigation into the semiconductor and electronics supply chain, signaling that recent tariff exemptions for smartphones and computers are temporary. Commerce Secretary Lutnick confirmed new duties on Chinese tech imports—including chips, smartphones, and computers—are expected within two months, heightening trade tensions. The shifting policies have triggered market volatility and sharp criticism from business leaders and politicians, who warn of economic disruption and recession risks.

China and ASEAN Media, Think Tanks Call for Ethical and Inclusive AI Development

At the China-ASEAN Media and Think Tank Forum in Kuala Lumpur, representatives from China and ASEAN countries emphasized the potential of AI to transform society while urging a balanced approach that prioritizes ethics, transparency, and human oversight. Participants agreed that AI should be leveraged to enhance communication, regional collaboration, and equity, particularly by promoting local data and cultural values. Experts highlighted the importance of maintaining human judgment at the core of AI deployment, ensuring that the technology benefits all communities without exacerbating misinformation or inequality.

M&A and Investments

South Korea Pledges $23B to Bolster Chip Industry as U.S. Tariff Threat Looms

In response to looming U.S. semiconductor tariffs, South Korea has announced a 33 trillion won ($23.25 billion) support package to safeguard its chip sector, home to giants like Samsung and SK Hynix. The package includes infrastructure subsidies, expanded low-interest loans, and advanced research and talent development initiatives. With the U.S. ramping up national security investigations into semiconductor imports, Seoul’s move aims to maintain its global leadership in memory chips and protect its vital export industry.

Company-Specific News

SK Hynix Overtakes Samsung in DRAM Market Thanks to HBM Dominance

For the first time in 40 years, SK Hynix has surpassed Samsung in global DRAM market share, capturing 36% in Q1 2025 compared to Samsung’s 34%, driven by strong demand for its HBM3E chips used in AI applications. Samsung’s delays in HBM shipments and declining competitiveness in AI-related semiconductors contributed to its fall from the top spot. Analysts believe SK Hynix will likely maintain its lead in the near term, while Samsung’s ability to reclaim dominance depends on future success in high-bandwidth memory.

Microsoft Revives AI Tool «Recall,» Raising Fresh Privacy Concerns

Microsoft has relaunched its AI-powered «Recall» tool, which takes automatic screenshots of users’ activity every few seconds to help them search past digital interactions. While the feature is opt-in and stores data locally with privacy safeguards, critics warn it may still capture sensitive information from messaging apps or emails—posing risks if devices are compromised. Despite Microsoft’s assurances, privacy advocates and regulators, like the UK’s ICO, remain cautious about potential misuse and call for strong transparency and compliance with data protection laws.