Chip Observer July 2025

In the latest edition of the Chip Observer, TechInsights covers significant semiconductor industry developments, including updates to the CHIPS Act, new semiconductor tax credits, and AI chip export rules to China. Key acquisitions like GlobalFoundries acquiring MIPS and AMD purchasing Brium are featured, alongside advancements in technologies like silicon photonics, PCIe 7.0, and LPDDR6.

Stay informed with expert analysis and real-time data to understand the evolving semiconductor landscape and future opportunities.

What’s Inside the July 2025 Issue

• Industry Observatory

  The US government’s updates to the CHIPS Act, including the increase in semiconductor tax credits to 35%, and the removal of restrictions on AI chip exports to China, are creating new opportunities. Major acquisitions, like GlobalFoundries acquiring MIPS and AMD purchasing Brium, are reshaping the competitive landscape. Meanwhile, Huawei’s Kirin X90, produced with SMIC’s 7nm process, and finalized standards such as PCIe 7.0 and LPDDR6 are pushing advancements in AI and networking.
  
  Explore more in-depth analysis on the latest industry trends.

• Under the Microscope

  A period of intense innovation is unfolding in the semiconductor industry. The renegotiation of CHIPS Act awards is driving substantial investments from companies like Texas Instruments and Micron. At the same time, PCIe 7.0 and LPDDR6 are advancing AI and HPC solutions, paving the way for a new wave of computing technology. These changes highlight the industry’s ongoing push for breakthrough technologies.

• Data Observatory

  Despite global challenges, certain segments of the semiconductor market, like Memory and Advanced Packaging, are experiencing steady growth. While a 3.6% increase in equipment sales is projected, caution remains high due to geopolitical concerns. If global conditions stabilize, a market rebound is expected by 2026.
  
  Access real-time insights and forecasts to stay ahead of the curve.

• Editorial: The KPIs of AI

  AI is transforming the semiconductor industry, but the road ahead won’t be a straight line. As the sector grows, it’s set to follow a cyclical pattern, influenced by energy demands, infrastructure needs, and market fluctuations. Hyperscalers are pouring investments into AI, yet their reliance on advertising revenue makes them vulnerable to economic shifts. The key to navigating this evolving landscape will be understanding how these dynamics—technology, infrastructure, and economic forces—will shape AI’s future.

• Company Profile: FormFactor

  FormFactor’s journey began in 1993 with a single mission: to provide cutting-edge semiconductor test solutions. Over the years, the company has grown into a leader, pioneering innovations in probe cards and systems that serve both established giants and emerging industries like silicon photonics and quantum computing. Today, FormFactor leads the way, securing the No. 1 spot in TechInsights’ 2025 Customer Satisfaction Survey, with a strong revenue performance of $171.4 million in Q1 2025, driven by major customers like SK hynix, Intel, and TSMC.
  
  From its early days to its present-day leadership, FormFactor has evolved through key acquisitions, such as MicroProbe and Cascade Microtech, expanding its expertise in cryogenic testing and silicon photonics.
  
  Learn more about FormFactor’s journey and performance here.

• Interesting Observations

  Silicon photonics (SiPho) is making a resurgence, revolutionizing AI and HPC datacenter optical interconnects. Companies like GlobalFoundries, Intel, and TSMC are using advanced packaging techniques such as co-packaged optics (CPO) to create faster, energy-efficient solutions. In the smart home market, edge AI chips are expected to have limited impact, with most devices relying on datacenter GPUs for scalability and upgradeability.

• Retro Tech: Can you guess this device?

  Originally developed for space exploration and military applications, this device found its true commercial success in a much quieter environment. Can you guess what it is?
  
  Log in to find the answer and explore more Retro Tech moments.