TSMC is the main beneficiary of the growth in demand for AI chips. Leading AI chip makers NVIDIA, AMD, Qualcomm and MediaTek are expected to maintain steady growth in the production of AI training accelerators and mobile SoC products this year.

Analysts noted that the ongoing tensions in the US-China relationship create geopolitical risks that add uncertainty to the cyclical development model of the semiconductor industry. US sanctions have strengthened China's desire to achieve self-sufficiency. At the same time, over the past two to three years, global brands have significantly expanded lithography capacities in China, reaching a peak

DIGITIMES Research expects that the import substitution trend will continue in China in 2025. In any case, Chinese electronics manufacturers are increasingly using locally produced components, seeking to reduce the impact of potential trade conflicts to zero. It is noted that European vendors such as STMicroelectronics, NXP and Infineon are showing growing interest in wafer fabrication at Chinese foundries, which benefits key market players including SMIC and Shanghai Huaho.