ComputInsights #27 – Weekly Computing Market Insights

Market Growth

China Smartphone Shipments Slip in 2Q25, Deeper Decline Expected in 3Q

China’s smartphone shipments reached 72.12 million units in 2Q25 according to DigiTimes Asia, down 0.6% from the previous quarter but slightly up year-on-year. Shipments are projected to fall a sharper 6.8% in 3Q25, dropping below 2024 levels. Huawei, Vivo, Xiaomi, Oppo, and Apple held a combined 85.2% share, with Honor slipping to sixth place.

M&A and Investments

China’s Top Cloud Giants Step Up Global AI Investments Despite Economic Headwinds

Alibaba, Tencent, Huawei, and Baidu are ramping up AI infrastructure investments, with Alibaba and Tencent recently announcing major capex increases. The four CSPs are expected to accelerate global expansion while promoting “Chinese-style” AI hardware and software solutions abroad. Despite US-China tech tensions and domestic economic challenges, their combined quarterly R&D spending has held steady at US$9 – 13 billion from 2021 to 2024, underscoring long-term commitment to AI-driven growth.

Company-Specific News

BYD Bypasses EU Tariffs, Ships 900 EVs from Thailand to Europe

BYD has begun exporting over 900 Dolphin EVs from its Thailand plant to Europe, sidestepping the EU’s 27% tariff on China-made cars. The move underscores BYD’s strategy to escape China’s cutthroat domestic market and pivot toward overseas growth, where its EV sales surged 160% in July. With new plants planned in Southeast Asia, Europe, and beyond, BYD is accelerating its shift toward localised global production to weather trade tensions and policy barriers.

TSMC to Hike Advanced Node Prices by Up to 10% in 2026 Amid Rising Costs

TSMC is preparing to raise foundry prices for its 5nm, 4nm, and 3nm processes by 5 – 10% in 2026, with smartphones and CPUs seeing moderate increases while AI and HPC chips face the steepest hikes. The move reflects mounting capex, supply chain pressures, and overseas production costs, with the company balancing profitability goals ahead of its 2nm rollout. Industry leaders, including Nvidia and AMD, have endorsed the pricing strategy as a fair reflection of the complexity and expenses tied to advanced semiconductor manufacturing.

Apple Accelerates Automation Amid Tariff-Driven Supply Chain Shifts

Apple is intensifying automation across its supply chain in 2025, requiring suppliers to independently invest in robotics to mitigate labor dependency and maintain quality as production moves from China to India and Vietnam. While initial automation raises costs and pressures supplier margins, the strategy aims to improve long-term yields and efficiency. The move reflects a broader industry trend, with robotics adoption expected to grow as manufacturers adapt to geopolitical uncertainties and dispersed manufacturing hubs.