01

Company Trend（April 08）

Rockchip responds to rumor that Samsung Wafer Fab will suspend Chinese business!

Recently, market rumor says that “Samsung Wafer Fab will suspend all Chinese business”, which has attracted the concern of the market. In this regard, on April 8, Rockchip, a well-known China-based chip designer, made a statement through its official WeChat account, stating that the news was fake after confirming with Samsung Wafer Fab. Rockchip stressed that it is advancing several products co-developed with Samsung at normal pace, and they are not affected yet.

In addition, Samsung Semiconductor also issued a clarification announcement on April 9, denying the suspension of its business in China but emphasizing that it is still cooperating with Chinese companies normally. Previously, the USA requested wafer foundries such as TSMC and Samsung to stop supplying 7nm chips and more advanced AI chips to customers from Chinese mainland since November 11 last year. In the field of advanced process foundry at 7nm and smaller processes, only three overseas companies, TSMC, Samsung, and Intel, have the strength to provide foundry services. Leaving Intel aside, after TSMC was restricted from supplying chips to Chinese mainland, Samsung has become a favorite choice in the eyes of many manufacturers. According to insiders, a number of manufacturers actually have started to contact Samsung in the hope that Samsung can fill the gap after TSMC stopped chip supply.

Industry analysts point out that if Samsung does not supply 7nm process chips to customers in Chinese mainland, its business will be impacted significantly. Chinese mainland has become an important target market for Samsung. If it lost these customers, its revenue would inevitably be slashed. At the same time, however, Samsung has to weigh the pressure from the US government and the potential risks. After all, political factors often play a key role in the decision-making of companies in the international semiconductor industry.

Comments:Rockchip’s emergency response effectively calms the markets concerns about the stability of the supply chain, avoiding the market panic caused by fake news. This rumor refuting not only reflects that Rockchip attaches great importance to its cooperation with Samsung but also demonstrates its determination and ability to maintain business stability in the face of market fluctuations. The official clarification of Samsung further stabilizes the market expectations and avoids unnecessary impact on the global semiconductor industry chain due to the rumor of supply interruption. The cooperative relationship between Rockchip and Samsung is particularly important in the current complex international situation, and the close cooperation between the two sides injects confidence in the development of the industry.

From a broader perspective, with the changing international situation and the continuous development of the semiconductor industry, the competition and cooperation landscape between wafer foundries is also constantly being reshaped. For companies in Chinese mainland, this is undoubtedly a challenging test. How to find a breakthrough point in the complex and changing international environment and achieve their development and growth has become an imperative question for them.

02

Market Trend（April 09）

Unprecedentedly changes in the semiconductor industry! US tariffs on Chinese goods surge to 104%!

On Monday morning, USA Eastern Standard Time, President Trump threatened on social media to add 50% tariff on China from April 9 and fully terminate negotiations with China if it does not withdraw the 34% retaliatory tariff announced on April 4. If such threat is implemented, combined with the previous 20% existing tariff and the new 34% tariff, the combined tariff rate on some Chinese goods will soar to 104%, the highest in international trade history.

The current trade crisis is triggered by Chinas countermeasure to the US “reciprocal tariffs” implemented in March . The US “reciprocal tariff” policy imposed a 34% tariff on Chinese goods, while China announced a 34% tariff on US goods valued at US$140bn from April 10, initiated rare earth export controls and added 16 US companies to its “List of Unreliable Entities”.

The Trump administration originally planned to implement “reciprocal tariffs” on April 2, but its tariff rates were questioned by the US business community. According to the macro analysis of YUEKRI Securities, Chinas rapid reaction disrupted the pace of the USA and forced Trump to threat a 50% tariff, which reflected the anxiety of US economic hegemony. In Q4 2024, the US trade deficit with China widened, Chinas direct investment in the USA plummeted, and the effectiveness of traditional sanction measures dropped.

Comments: The cumulative effect of the imposition of tariffs on Chinese goods by the USA has appeared. The companies such as Apple, Tesla and others that rely on Chinas supply chain have been impacted by the rising cost of import, dragging down the NASDAQ index. At the same time, Chinas maritime container volume declined and the supply chain transfer is accelerating. China has shown strong resilience in dealing with trade pressure through targeted cuts to required reserve ratios, special bond to support strategic industries, and launching the “Supply Chain Resilience Enhancement Program”.

China’s 34% additional tariff on all US goods triggered international chain reaction: The EU plans to impose additional tariffs on US agricultural products; Vietnam suspended approval of US-funded projects, Japan launched a semiconductor material reserve program; North American trading partners have not made countermeasures because of the threat of auto tariffs, exposing internal contradictions in US trade policy. The WTO warned that the escalation of the tariff war between China and the USA would lead to a contraction in global trade, and the Fed and Goldman Sachs predicted that the USA would face inflation, higher interest rates, and higher loan default rates.

Chinas tariff countermeasures broke the US logic of “unilateral gain” and advance the WTO reform initiative to win support from many countries. The Trump administrations high tariffs have exposed its lack of a systematic trade strategy. As the actual costs will be borne by the US importers, it will undermine the competitiveness of US companies. The Chinese Ministry of Commerce has not yet responded to Trump’s latest threats, but said that China is ready to fight to the end. Nobody knows where the China-US trade war will go, and the global economic prospects are uncertain.

03

Market Trend（April 09）

A risk list of Chinese companies highly relying on US companies

Recently, a “risk list of Chinese companies highly relying on US companies” aroused a high concern on the business structure of relevant listed companies in the market. Here is a dynamic analysis of some of the companies on the list and their industries:

1.  Consumer electronics industry

－      Luxshare Precision Co., Ltd.:  Luxshare Precision is a leading supplier of Apple, and 70% of its revenue comes from Apple. The company reduces tariff risk through a global layout (by establishing plants in Vietnam, Mexico, etc.), but the stability of its orders from Apple still plays a critical role. If Apple adjusts demand or reduces prices due to tariffs, the profits of Luxshare Precision will be affected.

－      Goertek: The company has “reliance on double clients” (Apple iOS and Android customers), and it will be impacted by Apples order cut-off. Although Goertek has very efficient inventory turnover, its business structure highly relies on Apple orders, which makes it face higher risk in trade frictions.

－      Lens Technology: As the company holds more than 55% of the global glass panel market, consumer electronic business accounts for a high proportion of its business, so its inventory turnover is under pressure. Apple accounts for 57.83% of its sales, showing its high reliance on the US market.

2. Electronics manufacturing industry

－      Avary Holding: The company is the world leader in the PCB industry, with 80% of its revenue coming from the US market, mainly making business with Apple. It tries to reduce risks by globalizing its presence and expanding new business, such as AI, new energy vehicles, etc.

－      Dongshan Precision: 55% of the company’s business comes from Apple, and it has a high debt ratio. The share of its export sales is more than 80%, but the US market accounts for less than 5% of its direct export sales, and its global layout can reduce risks.

3.  Automobile electronics industry

－      Joyson Electronics: As the worlds leading automotive electronics and automotive safety supplier, Joyson has established a closed loop of “research, production, supply, and marketing” in major automotive markets due to its global “Local for Local” layout, which is very little affected by tariff policies.

－      Lingyi iTech: As 50% of its revenue comes from the Apple industry chain, its profit margins are limited due to the Cost Down strategy. However, with its plant layout in China and the USA, it has effectively avoided high tariff costs.

4. Pharmaceutical industry

－      ‌WuXi AppTec: As the worlds leading open capability and tech platform for developing pharmacy, biotechnology, and medical devices, the company earned 64% of its revenues from US customers. The US market accounts for 61% of global innovative drugs, and the business of WuXi AppTec relies highly on the US market. Therefore, the changes in the US market will have a significant impact on its market value and business.

Comments: Most of the listed companies are in the key link of the global industrial chain and rely on the US market or technology. Although facing the risks of tariff shock, order fluctuation and others in the short term, some companies make active response through globalized layout, capacity transfer, product upgrades and other means. Those companies highly relying on US companies or market show the vulnerability of their supply chains in trade frictions. In the event of US policy adjustments or supply chain disruption, these companies may face shortages of raw materials, lost orders, and more.

Consumer electronics and automotive electronics industries rely highly on US companies and are significantly prone to trade policy impact. Relevant companies should accelerate the diversification of their supply chains and reduce their reliance on a single market. As for the pharmaceutical industry, although WuXi AppTec and other companies rely on the US market, they have certain ability to withstand risks by improving their bargaining power based on high-end, branding strategies.

The government can support relevant companies to speed up the process of technological upgrading and replacing imports with domestic products and reduce their reliance on US-based companies. Uncertainty in China-US trade policy may lead to market volatility. Therefore, investors need to pay close attention to the quarterly financial reports of companies, tariff policy updates, and global market dynamics.

04

Policy Trend（April 10）

Trump suspends banning Nvidia H20 export to China

According to the report of NPR citing sources familiar with the matter, the Trump administration has decided to suspend restrictions on the export of Nvidia H20 to China. Previously, the US government has been preparing for several months to implement export controls on H20 as early as this week. However, the White House has changed its stance following a meeting between the US President Donald Trump and Nvidias chief executive Jensen Huang at a dinner at Mar-a-Lago in Florida. According to news, Nvidia has promised to invest in building new AI data centers in the USA, which has prompted the US government to abandon plans to promote the restriction policy.

H20 is the most cutting-edge AI chip that Nvidia can legally sell to the Chinese market. Although its performance has been adjusted to comply with US export control regulations, it is still widely used in the Chinese market. Previously, the US lawmakers repeatedly pressed to implement much stricter export control over cutting-edge AI technology. This policy change is deemed by the outside as a major adjustment in the US export control of AI technology.

Comments: There is a huge demand of Nvidia H20 in the Chinese market. To limit its export will have a major impact on Nvidias revenue. Nvidia’s revenue in Chinese mainland reached US$17.108bn in FY2025, the highest ever. The suspension of the export ban will help Nvidia continue to gain significant economic benefits from the Chinese market.

Nvidia promised to pour more money into US-based AI data centers, a move that helped create jobs for the USA and drive the development of related industry chains. To some extent, this policy shift can be seen as the government’s “reward” for the company’s investment in local industries. The US political forces hold different attitudes toward AI export controls. Some lawmakers argued for taking strict restrictions to protect the US technological advantage and national security. The suspension may be a compromise of the Trump administration after balancing various interests, but there is still uncertainty about future policies.

The suspension of export restrictions allows Chinese companies to continuously acquire H20, relieving pressure on the supply of high-end AI chips in the short term. This plays a positive role to drive the development of Chinas AI industry, especially the technological innovation of start-ups.

05

Domestic News（April 8）

Silan Microelectronics achieved new progress in SiC project, starting 6-in & 8-inch production lines simultaneously

Silan Microelectronics made new progress in its SiC project, officially started the dual mode of fabricating 6 inch and 8 inch products. Currently, Silan Microelectronics has completed the construction of 6-inch SiC production line and successfully achieved mass production. The products are mainly used in NEVs, solar energy and other fields and have gained wide recognition in the market due to their excellent performance and reliability. At the same time, the company is actively advancing the construction of the 8-inch production line, which is expected to be put into operation in the coming two years. The construction of the 8-inch production line will further improve the capacity and market competitiveness of Silan Microelectronics in the SiC field to meet the rapid growth demand for high-performance SiC devices in the market.

In the field of technology R&D, Silan Microelectronics continuously increases its investment, cooperates with scientific research institutions and universities at home and abroad, and continuously optimizes the manufacturing process of SiC devices to improve product performance and yield. The company also actively participates in the development of industry standards to promote the healthy development of SiC industry. Silan Microelectronics, by launching the 6-inch and 8-inch production lines, not only can better meet the needs of different customers, but also will further consolidate its leading position in the SiC field, thus making important contributions to the development of Chinas ultra-wide bandgap semiconductor industry.

06

Domestic News（April 9）

C*Core Technology Co., Ltd.: Ultra-high performance RISC-V cloud security chip passed internal test successfully

Recently, C*Core Technology Co., Ltd. announced the internal test success of its ultra-high performance RISC-V cloud security chip, marking a major breakthrough in the RISC-V architecture chip field. The chip, designed for cloud computing and network security scenarios, features high-performance processing and robust security functions. During internal testing, the chip performed very well in terms of several key indexes, including but not limited to data processing speed, encryption and decryption efficiency, and stability in high-concurrency environments. Its security features are also rigorously tested and it can defend a wide range of cyber-attacks, thus protecting the integrity and privacy of user data.

The success of the internal test means that the chip’s stability and reliability have been verified in actual applications, laying a solid foundation for subsequent mass production and marketing. This result not only shows the semiconductor technological R&D strength of the company but also further promotes the application of RISC-V architecture in the high-end chip market and its development. With the gradual popularization of the chip, it is expected to provide more cost-effective and self-controlled solutions for cloud computing and network security and help relevant industries to achieve digital transformation and information security.

07

Domestic News（April 9）

Rong Semiconductor starts 12-inch chip project, with total investment of RMB16bn

Zhejiang Rong Semiconductor (Ningbo) Co., Ltd. (Rong Semiconductor) officially started the construction of its 12-inch chip project, with a total investment of RMB16bn. The project is located in Zhejiang Province and is to build a domestic leading semiconductor fabrication base, focusing on the R&D and production of high-end chips. The project covers advanced chip fabrication process according to the plan. It is expected that the project will have a capacity of tens of thousands of chips per month, which can meet the market demand for high performance chips.

The commencement of this project marks an important step in the semiconductor field and it will further improve the domestic semiconductor industry chain. The project will adopt international advanced 12-inch chip fabrication technology, covering the entire industry chain from design to packaging & test, and is dedicated to improving the performance and reliability of chips. By introducing high-end equipment and technical talents, Rong Semiconductor will promote the localization of chip fabrication technology to help the relevant industry reduce the dependence on imported chips.

In addition, the project will drive the development of upstream and downstream related industries and promote the prosperity of the regional economy. After completion, the project is expected to attract more semiconductor companies to the region, form an industrial clustering effect, and drive the high-quality development of the semiconductor industry in Zhejiang Province and even across China.