China’s EV industry is now building on the past glories of its automotive sector. The much-criticized issue of “overcapacity” seems to be a perpetual non-concern. Outdated, low-quality EVs are sent to the scrapyard during market transitions. China’s system naturally eliminates laggards that fail to keep pace. The Chinese assure the world there is no need to worry unnecessarily, emphasizing that they possess greater resilience and flexibility than other nations to tolerate failures. Even if only three EV manufacturers remain profitable, the Chinese will not falter.

Global investment in front-end fab equipment is projected to increase by 2% year over year to US$110 billion in 2025, marking the sixth consecutive year of growth since 2020, according to SEMI. Expenditure is forecast to rise by 18% the following year, totaling US$130 billion.

Amid uncertainties regarding US tariff policy, Taiwanese server manufacturers are adapting for the future. DIGITIMES analyst Yen Chou noted that servers produced in the US will be expensive, particularly affecting cloud service providers (CSPs) like AWS and Microsoft.