ComputInsights #11 – Weekly Computing Market Insights

Market Growth

China to Hold 31% of Global 28nm Foundry Capacity by 2027 Amid Rapid Expansion

China’s share of global 28nm chip foundry capacity is set to rise from 18% in 2023 to over 31% by 2027, driven by aggressive expansion from SMIC, HLMC, Nexchip, and others. This growth is fueled by surging demand in automotive, IoT, and display applications, as well as China’s strategic push into mature-node manufacturing. Despite geopolitical headwinds, China has become the world’s top semiconductor equipment buyer, accounting for over 40% of global spending in 2024.

M&A and Investments 

GlobalFoundries Beats Q2 Forecasts Amid Resilient Chip Demand

GlobalFoundries projected second-quarter revenue and profit slightly above analyst expectations, signaling steady chip demand despite weakness in smartphones and disruptions in auto production. The company remains resilient even as new U.S. tariffs impact key sectors like automotive, its third-largest end market. This shows continued stability in core semiconductor demand amid broader market volatility.

Company-Specific News

OpenAI Expands Hiring in Asia Amid Global Tech Shifts and Tariff Pressures

OpenAI is ramping up recruitment in Asia, with 26 job openings in Singapore and Japan, aligning with broader tech industry trends of shifting roles overseas to manage costs. The company’s global headcount has surged to 4,000, reflecting a growing demand for roles in engineering, operations, and regulatory affairs. Analysts note that while generative AI boosts productivity, it is also reshaping the software job landscape, as U.S. companies reduce domestic hiring and shift talent strategies amid tariff pressures and economic uncertainty.

Zoho Halts $700M Chip Venture, Stalling India’s Semiconductor Push

Zoho has suspended its $700 million semiconductor initiative, including a $400 million chip plant in Karnataka, due to the lack of a suitable technology partner. The move highlights the growing challenges in India’s semiconductor ambitions, especially as it continues to lack a single operational chipmaking facility. This marks the second major setback for India’s chip agenda following a pause in Adani’s $10 billion project.

Huawei Expands Shenzhen Chip Network in Bold AI Supply Chain Push

Huawei is rapidly expanding its chip manufacturing footprint in Shenzhen, developing three advanced facilities as part of its effort to build a fully domestic AI supply chain. Backed by local funding, the company is testing AI processors aimed at rivaling Nvidia’s H100 while partnering closely with sanctioned start-ups despite prior denials. This marks an unprecedented, all-encompassing strategy by Huawei to reduce reliance on foreign technology amid U.S. trade restrictions.