Taiwan’s machinery rebound overshadow by rising currency drag

The Taiwan Association of Machinery Industry (TAMI) reported that Taiwan’s machinery exports hit US$2.422 billion in April 2025, up 7.7% compared to the same period last year. Cumulative exports for the first four months rose 4.7% from the same period in 2024, signaling a tentative industry rebound. However, manufacturers remain wary amid lingering concerns over tariffs and exchange rates.

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From flagship to family car: SiC drives China’s EV boom amid intense price wars

Although the 2025 Shanghai International Auto Show has concluded, its ripple effects continue to shape the automotive landscape. Bolstered by the Chinese government’s early implementation of trade-in subsidies, alongside a confluence of auto show buzz and promotional campaigns, China’s passenger vehicle retail sales soared to 1.81 million units in April 2025, marking the second-highest monthly figure on record.

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Cloud market remains strong as top trio CSPs report capacity constraints

Global enterprise spending on cloud infrastructure reached US$94 billion in the first quarter of 2025, marking a 23% year-over-year increase. Amazon’s AWS continues to lead the market, while Microsoft and Google show stronger growth momentum. During recent earnings calls, all three companies highlighted tight cloud supply capacity, dispelling earlier market concerns about a potential demand reversal.

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AI and advanced chipmaking drive robust growth in semiconductor materials

With the escalating global trade tensions and fresh US tariffs rattling the semiconductor sector, the underlying momentum in high-performance computing (HPC) and AI applications remains undeterred. Particularly, the ramp-up in 2-nanometer process production and sustained demand for advanced packaging technologies are fueling optimism among materials distributors. As a result, the traditionally slow first quarter of 2025 defied expectations, with industry players anticipating a strong second quarter as well.

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Chinese panel makers scale back LCD production as tariffs bite

Chinese panel manufacturers BOE Technology and TCL China Star Optoelectronics (TCL CSOT) have reportedly begun scaling back their LCD panel production in response to the tariff policies imposed by the Trump administration since January 2025, which have effectively blocked their export channels to the US. Despite strategic efforts to expand into alternative markets across Europe and Asia, these companies face significant challenges securing new customers in the short term. Compounding their difficulties, the Chinese government has reduced subsidies, leaving production cuts as their only viable recourse.

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