Global Semiconductor Industry Update – May 2025

Published by Kanetora Insights – May 5, 2025

Huawei's Strategic Expansion in Semiconductor Manufacturing

Huawei is intensifying its efforts to establish a self-reliant semiconductor ecosystem in China. Recent satellite imagery and insider information reveal that Huawei is central to three advanced chip production facilities in Guanlan, Shenzhen. One facility is directly operated by Huawei, focusing on producing 7nm smartphone and Ascend AI chips. The other two, SiCarrier and SwaySure, though officially separate entities, have strong developmental and financial ties with Huawei. These facilities, supported by the Shenzhen government, aim to reduce reliance on foreign technologies, particularly in the wake of U.S. sanctions imposed since 2019.

Adani Group Pauses $10 Billion Semiconductor Venture in India

India's Adani Group has paused its $10 billion semiconductor venture discussions with Israel's Tower Semiconductor due to strategic and commercial concerns. The project, approved by Maharashtra state, aimed to produce 80,000 wafers monthly and create 5,000 jobs, supporting Prime Minister Narendra Modi’s goal of establishing India as a chipmaking hub. However, Adani's internal evaluation highlighted unresolved questions around local demand for semiconductors and concerns over Tower’s limited financial commitment. This pause represents a potential setback to Modi’s “Make in India” semiconductor strategy, especially following the collapse of a $19.5 billion Vedanta-Foxconn JV in 2023.

EU's Semiconductor Strategy Faces Criticism

The European Union's strategy to secure microchip supply has come under scrutiny. A report by the European Court of Auditors criticizes the EU's goal to produce 20% of the world's microchips by 2030, labeling it “deeply disconnected from reality.” The report highlights fragmented investments and insufficient financial coordination as major hurdles. Despite launching the Chips Act in 2022 to reduce reliance on foreign semiconductor suppliers, the EU lacks the cohesive funding strategies needed. Global chipmakers like Taiwan’s TSMC and South Korea’s Samsung are investing significantly more than the EU, with only TSMC showing strong EU investment plans.

At Kanetora, we continuously monitor global developments in the semiconductor industry to provide our partners with timely insights and strategic guidance.