Tech Giants Shift Manufacturing Out of China; U.S. Restricts China Investment; Intel 18A Enters Pilot Production

Here is a roundup of key developments in global tech and semiconductor industries: 1. AMD to Sell Data Center Manufacturing Plants for Up to $4 Billion AMD is in talks with Asian firms—including Compal, Inventec, Pegatron, and Wistron—to sell data center manufacturing facilities acquired via its $4.9 billion acquisition of ZT Systems in 2024. The assets, valued at $3–4 billion including debt, are primarily located in New Jersey and Texas, making them attractive to buyers seeking to avoid U.S. tariffs on imports from Mexico and China. The move aligns with AMD’s strategy to exit manufacturing and avoid competing with major customers like Dell and HP. The sale could be announced as early as Q2 2025, though negotiations remain ongoing. The server manufacturing business generated ~$10 billion in revenue in the 12 months prior to AMD’s acquisition. 2. Intel 18A Process Ready for Customer Tape-Outs, Pilot Production in H1 2025 Intel has announced its 18A node is ready for customer projects, with pilot production set to begin in the first half of 2025. This advanced process features: RibbonFET transistors, the industry’s first replacement for FinFETs, delivering tighter gate leakage control SRAM density comparable to TSMC’s 2nm N2 process, 15% better performance per watt, and 30% higher chip density than Intel’s 3nm node Early customers include AWS, Microsoft Azure, and Broadcom, with Intel’s own Panther Lake client CPUs and Clearwater Forest Xeon CPUs as the first products using 18A. This milestone positions Intel ahead of TSMC, which plans to start 2nm mass production in late 2025. 3. Apple Expands India Manufacturing with iPhone 16e Apple confirmed the iPhone 16e will be assembled in India alongside the full iPhone 16 lineup, for both local consumption and export. This marks a major step in its manufacturing diversification strategy: The iPhone 16e will be produced on the same Indian lines as the iPhone 14 High-end models like the iPhone 16 Pro and Pro Max are now also made in India India’s share of iPhone production is projected to rise from ~15% currently to 25% by 2027 iPhone exports from India hit nearly $6 billion in H2 2024, up 33% YoY. 4. China Slams U.S. “America First” Investment Policy as Non-Market Practice China’s Ministry of Commerce criticized the U.S. new investment restrictions targeting China, calling them a “typical non-market practice” that politicizes economic ties. The statement warned: U.S. restrictions on two-way investment will damage business confidence and distort bilateral investment flows American businesses risk ceding the Chinese market to competitors China will take “necessary measures” to defend its interests. The U.S. policy aims to curb technology transfer to China, with stricter reviews of Chinese investment in the U.S. and additional limits on U.S. investment in China. 5. TSMC 2nm Monthly Capacity to Hit 50,000–80,000 Wafers by End-2025 TSMC’s 2nm N2 process is progressing rapidly, with pilot production underway at its Baoshan and Kaohsiung fabs. Market projections indicate: Baoshan fab is currently producing 5,000–10,000 2nm wafers monthly, targeting 25,000 wafers by end-2025 Combined monthly capacity across both fabs is expected to reach 50,000 wafers by year-end, potentially scaling to 80,000 wafers if Phase 2 expansion proceeds smoothly Mass production remains on track for H2 2025, with demand driven by smartphones and high-performance computing. 6. Samsung Evaluates Shifting Smartphone Production Out of China Samsung is exploring moving its joint design manufacturing (JDM) smartphone production out of China, citing concerns over U.S. tariffs. The tech giant is assessing partners in India (seen as a more stable alternative to Vietnam) to produce mid-range and budget devices, which account for ~20% of its annual smartphone shipments. The move follows the U.S. imposing a 10% tariff on Chinese-made mobile devices, a category previously exempt. Samsung’s key Chinese JDM partners include Wingtech, Huaqin, and Longcheer.