Industry insiders said US-China relations have been flammable ever since the trade war ignited, especially in the high-stakes arena of semiconductors. But in recent weeks, a series of diplomatic signals suggests the two sides may be testing the boundaries of each other’s political and economic endurance.

Chinese electric vehicle manufacturer BYD is set to officially commence operations at its Brazil car plant in July 2025. However, due to heavy rains and a labor investigation, the plant will not reach full production capacity until July 2026, according to Reuters and the Rio Times.

Adata Technology, one of Taiwan’s top memory module makers, just posted its best monthly revenue in more than 15 years, thanks to surging demand for DDR4 memory chips. As major chipmakers phase out DDR4 production, spot market prices have jumped past contract levels, sparking a wave of urgent buying. That spike in both prices and orders helped Adata deliver what it’s calling its strongest June on record.

Following US President Donald Trump’s announcement of reciprocal tariffs on 14 nations, including a 25% duty on Japanese and South Korean imports, concerns are rising that Taiwan could face even harsher terms. Bill Chiu, Chairman and CEO of Gudeng Precision Industrial Co., said the company’s profit outlook remains stable for now, as its free-on-board (FOB) model passes shipping and tariff costs to customers. However, he cautioned that the new policy may curb customer demand and order volume.