ComputInsights #13 – Weekly Computing Market Insights

Market Growth

DRAM Prices Surge Amid AI Boom, Favoring Samsung, SK Hynix, and Taiwanese Memory Makers

Global DRAM prices are spiking as AI infrastructure investments and pre-tariff stockpiling fuel demand. Samsung and SK Hynix lead the charge with price hikes of up to 20%, while Taiwanese firms like Nanya and Winbond anticipate continued recovery. Nvidia’s major AI deal in Saudi Arabia, featuring HBM3E-rich GB300 accelerators, adds further momentum, positioning memory suppliers for strong margins and sustained growth through 2025.

China’s OSAT Industry Surges as AI and EV Boom Propels Advanced Packaging Front and Center

China’s Outsourced Semiconductor Asset (OSAT) sector is accelerating, fueled by strong AI and EV demand. JCET, TongFu, and Huatian all posted double-digit growth in early 2025, with advanced packaging now a key battleground. JCET’s high-performance computing revenue soared nearly 93%, while TongFu’s automotive chip packaging surged over 200% in 2024. As China bets on Chiplets, fan-out, and 2.5D/3D technologies, analysts expect advanced packaging to surpass traditional methods in market share this year—marking a pivotal shift in the global semiconductor landscape.

Japan’s Chip Fab Expansion Stalls as Non-AI Demand Falters

Only 3 of 7 semiconductor fabs built or acquired in Japan during FY2023–24 have begun mass production as of April 2025. Despite government-backed pushes to strengthen domestic chipmaking, firms like Renesas, Rohm, and Kioxia are holding back, citing weak demand for non-AI chips such as those used in smartphones and consumer devices. With U.S.-China tech tensions still driving policy, Japan’s broader semiconductor ambitions now hinge on a rebound in traditional chip markets and the pace of AI-driven diversification.

M&A and Investments 

India Launches Semicon 2.0 to Claim 5% of Global Chip Market by 2030

India has kicked off its Semicon 2.0 initiative, aiming to secure 5% of the global semiconductor production share by 2030. Backed by a $10 billion incentive scheme, the government has approved five projects and over ₹1.55 trillion in investments, including ₹91,000 crore for Tata’s upcoming fab plant. A senior IT Ministry official emphasized that India is still in the early stages of building its semiconductor ecosystem.

Company-Specific News

Xiaomi to Invest CNY50 Billion in Chip Design, Unveils 3nm ‘Xring O1’ SoC

Xiaomi CEO Jun Lei announced a decade-long CNY50 billion (~US$6.94B) investment in chip design, reaffirming the company’s ambition to become a major hard tech player. On May 22, Xiaomi will debut its first 3nm SoC, the Xring O1, ahead of domestic rivals, with production likely supported by TSMC or Samsung. The launch will coincide with the new 15S Pro smartphone and the YU7 electric SUV—seen as a direct Tesla challenger—signaling Xiaomi’s push for vertical integration across mobile and automotive platforms