Despite progress in inventory clearance and the boost from artificial intelligence (AI) applications, supply chain players remain cautious about the peak season benefits for consumer electronics in the second half of 2024. The AI market, however, continues to show robust demand, particularly for AI servers. Even with reports of potential delays in the next-generation Blackwell chip, the demand for AI servers remains a crucial growth driver for supply chain companies.

With Intel and Wolfspeed delaying the development of facilities in Germany, TSMC will break ground on a new plant in Dresden on August 20, which is critical for Germany, according to industry sources.

Japanese prime minister Fumio Kishida is stepping down before the end of September 2024. Many policies from his administration require large budgets, including providing subsidies for the semiconductor industry and the GX policy. There are still questions regarding how these policies would proceed after his leave.