The trade conflict between the US and China has intensified, with the US recently announcing an increase in tariffs on Chinese goods to 125%. This move is seen as a reaffirmation of US President Donald Trump’s hardline trade stance and pushes the global trade war to new heights. The two major powers are now akin to being in a game of chicken, with both sides nearing a breaking point.

As AI business opportunities continue to develop, many industry insiders admit that the current landscape remains dominated by large corporations, particularly in the chip sector. Leading companies like Nvidia and other cloud-based AI chip makers, such as those focusing on ASICs, remain the biggest winners. On the other hand, smaller chipmakers, especially those from Taiwan focusing on edge devices, have yet to experience significant momentum in the AI market.

A looming 32% reciprocal tariff from the US on Taiwan is set to reverberate through the memory module industry, with consumer electronics demand likely to bear the brunt. Industry insiders report that US distributors, constrained by lean inventories and depleted low-cost stockpiles, are scrambling to shore up supplies. Upstream memory manufacturers continue to push for price hikes, but the looming tariff costs may precipitate a decline in overall demand, potentially upending the anticipated supply constraints in the latter half of the year.