ELECTRONIC NEWS HIGHLIGHT W12.2025

1. Intel delays completion of $28 billion chip factory in Ohio until 2030

Intel announced on February 28 that completion of its $28 billion chip manufacturing facility in New Albany would be further delayed, with the plant now expected to be completed no earlier than 2030—pushing back the original timeline by at least five years. The facility is expected to begin operations between 2030 and 2031.

The company has aggressively expanded its foundry business to compete with TSMC and Samsung, but large investments have put pressure on the company’s accounting and finance departments, leading to cuts in capital spending in recent years.

Naga Chandrasekaran, general manager of Intel Foundry Services, told employees in a statement that “these adjustments will align the company’s factory expansion to market demand, while ensuring responsible capital management. We are taking a considered approach to ensure the project progresses in a financially sustainable way.”

Intel also confirmed that its second facility in Ohio is currently expected to be completed in 2031 and begin operations in 2032.

Learn more: Intel delays completion of $28 billion chip factory in Ohio until 2030

2. AI Demand Drives NAND Recovery as Supply Cuts

The NAND flash market is seeing prices recover after a prolonged downturn, driven by strategic output cuts by major suppliers and growing demand for AI applications. Meanwhile, DRAM prices remain stable.

NAND prices, which had been falling since 2024, began to recover in January. As of February 28, the average fixed trading price of NAND flash (128Gb 16Gx8 MLC) increased to $2.29, marking a 5.29% month-on-month increase. This price increase is attributed to supply cuts by Samsung Electronics, SK Hynix, Micron and Kioxia, helping to alleviate oversupply. Additionally, China’s subsidies have boosted smartphone sales, accelerating the consumption of NAND inventory.

Analysts predict a combination of supply cuts and AI-driven demand will drive NAND prices to recover in Q2 2025. TrendForce predicts that smartphone brands will stock up on low-cost NAND inventory during this period, taking advantage of the slowdown in prices. Furthermore, if Nvidia ramps up shipments of Blackwell-series AI chips in the second half of 2025, enterprise SSDs and other high-value NAND products could see renewed demand.

In contrast, DRAM prices remained stable for three consecutive months. As of February 28, the average fixed transaction price of PC DRAM (DDR4 8Gb 1Gx8) remained stable at $1.35, unchanged from the previous month. This stabilization follows a sharp drop of 20.59% in November 2023. TrendForce noted that concerns about US import tariffs prompted PC makers to stock up on inventory in advance, accelerating DRAM consumption.

Despite this, most DRAM vendors and PC manufacturers have finalized supply agreements in Q1, with DRAM prices expected to decline 10–15% this quarter. Additionally, SK Hynix’s focus on server DRAM production has temporarily limited PC DRAM supply, while delays in capacity expansion by Chinese manufacturers have further impacted availability.

Learn more: AI Demand Drives NAND Recovery as Supply Cuts

3. Yageo pursues hostile takeover of Japan’s Shibaura Electronics to expand sensor business

Yageo Corporation recently announced its intention to make a tender offer to acquire Japanese company Shibaura Electronics. The total value of the transaction is expected to be approximately 65,559 billion Yen. Yageo is looking to strengthen its sensors business to meet growing demand in AI and electric vehicle (EV) applications.

Yageo founder and chairman Pierre Chen emphasized that even if Shibaura Electronics does not agree to the sale, Yageo is determined to continue with the takeover. He pointed out that Shibaura has excellent temperature sensing technology, which is important for AI and electric vehicle applications. Yageo has long followed Shibaura Electronics, but with about 60% of Shibaura’s business concentrated in Japan and only 6% of sales coming from key markets such as China, Europe and the United States, the company has limited global reach.

Shibaura Electronics’ business is primarily focused on home appliances, accounting for 44% of revenue, while automotive and industrial applications make up a much smaller portion, limiting the company’s growth potential. Yageo believes that through the acquisition, the company can help Shibaura expand its presence in the European and US markets and drive growth in high-potential sectors such as electric vehicles, AI and healthcare.

Despite the acquisition, Chen emphasized that Yageo has no intention of interfering with Shibaura’s operational independence. He admitted that Shibaura possesses unique technology and entrepreneurial spirit that Yageo does not have, which is why Yageo plans to maintain Shibaura’s management independence while focusing on achieving mutual growth through cooperation.

Yageo plans to expand Shibaura’s production facilities and invest in R&D to help the company grow in the global market. Chen stated that the post-acquisition strategy will not only focus on cost cutting but also on collaborations that will bring more growth opportunities, especially in areas such as AI, automotive technology and other advanced industries.