ComputInsights #7 – Weekly Computing Market Insights

Market Growth

Trump Revamps CHIPS Act to Attract $100B+ in U.S. Chip Investments

US President Trump’s new executive order establishes an “Investment Accelerator” to streamline billion-dollar semiconductor investments and cut U.S. fab costs by up to 10%. Analysts say this could fast-track TSMC’s $100 billion Arizona project, while shifting incentives away from foreign firms and underperforming players like Intel and Samsung. The focus is now on AI and advanced manufacturing, with future support favoring U.S.-based and strategically essential companies.

Chip Giants Face Tariff Storm as Trade Tensions Escalate

TSMC and Samsung are bracing for potential 25% U.S. tariffs on semiconductors, signaling higher costs and weaker demand. Shares of both companies have dropped sharply, losing $117 billion in value since the announcement. Rising import duties on key equipment may also derail plans to expand chip production in the U.S.

M&A and Investments 

Micron Eyes AI-Fueled Growth Amid Memory Market Shifts

According to a SWOT analysis by Investing.com, Micron is well-positioned to benefit from booming demand for AI and data center memory, especially with its rapid High Bandwidth Memory (HBM) expansion. While near-term challenges persist in the consumer NAND and DRAM segments, strategic investments—like CHIPS Act funding and Singapore expansion—underscore its long-term growth plan. However, risks remain from weak consumer demand and rising competition from Chinese suppliers.

Company Specific News

Apple’s MacBook Air Gets M4 Chip, Lower Price in 2025 Refresh

Apple’s best-selling laptop just got a major performance boost. The 13-inch and 15-inch MacBook Air now come with the powerful M4 chip—offering double the speed of the M1—and start at a more affordable $999. With support for up to three displays, improved webcam with Center Stage, and 16 GB of base RAM, the Air is a sleek, AI-ready machine. Also announced: the updated Mac Studio, featuring either the new M4 Max or powerhouse M3 Ultra chips, priced from $1,999. Both devices ship March 12.

Japan’s Rapidus Begins Test Production of 2nm Chips, Eyes 2027 Mass Launch

State-backed chipmaker Rapidus has launched a pilot line for 2-nanometer semiconductors at its Chitose plant in Hokkaido, a key milestone toward mass production slated for 2027. Prototype chip production will begin by July. Backed by over ¥1.8 trillion ($12B) in government funding and in collaboration with IBM, Rapidus aims to compete globally amid rising demand for AI-optimized chips. CEO Atsuyoshi Koike said the company is focused on achieving strong yield performance and building client trust, with additional private sector investment expected.

Samsung to Raise DRAM and NAND Prices Amid Demand Surge, DDR5 Costs Expected to Climb

Samsung plans to hike DRAM and NAND Flash prices by 3–5%, responding to increased demand driven by new US semiconductor tariffs and an AI-fueled tech boom. The move follows similar price hikes by Micron and anticipates new PC and smartphone launches in Q2 2025. DDR5 prices have already surged 12% over three months, while DDR4 remains stable due to oversupply from Chinese manufacturers. Although the market is cyclical, with past price drops after peaks, consumers may face higher costs in the near term—especially for high-performance memory.