The burgeoning demand for AI computing capabilities is propelling the semiconductor industry into a fresh phase of expansion. Yet, a myriad of challenges—including geopolitical tensions, supply chain fragility, discrepancies between capital cycles and industry rhythms, and the breakdown of globalization models—are compelling the global semiconductor supply chain to reassess the relative importance of efficiency and security. The soaring demand for AI computing power has disrupted the equilibrium between supply and demand for high-end chips, triggering substantial price hikes in memory chips, server CPUs, and packaging and testing services, which stand as the primary catalysts behind this surge.

Concurrently, geopolitical conflicts have escalated the expenses associated with cross-border logistics, energy, and raw materials, further amplifying supply chain vulnerabilities and steering the global semiconductor industry towards regionalization and localization in its restructuring efforts. In this context, the semiconductor industry grapples with the dual imperatives of efficiency and security, necessitating a delicate balance between capacity augmentation and market demand, all while safeguarding supply chain resilience to foster sustainable growth.