Huawei’s $3000 Tri-Fold Phone & Taiwan’s Chip Industry Hit by U.S. Tariff Threats

Huawei has launched its $3,000 Mate XT tri-fold phone, targeting Southeast Asia and the Middle East amid U.S. restrictions. Taiwan’s chip industry faces uncertainty as Trump threatens 25% tariffs on semiconductor imports. Meanwhile, Apple ramps up iPhone production in India, and Tencent integrates DeepSeek AI into WeChat, challenging Baidu’s dominance.

CONTENTS:

• ASE Expands in Malaysia
• Apple Increases iPhone Manufacturing in India
• U.S.-China Trade War Pressures Taiwan’s Semiconductor Industry
• Tencent Adopts DeepSeek AI Model

Huawei’s $3000 Tri-Fold Phone & Taiwan’s Chip Industry Hit by U.S. Tariff Threats

Key Developments in Asia’s Tech Industry:

Huawei Unveils $3,000 Tri-Fold Phone

Huawei has launched its tri-fold Mate XT smartphone, priced at RMB 19,000 (~$2,745), in Kuala Lumpur. With U.S. trade restrictions impacting its business, Huawei is focusing on Southeast Asia and the Middle East to sustain its consumer electronics and telecom divisions. The company’s push to regain global prominence includes expanding the reach of its HarmonyOS-powered devices, which currently have 93% of sales in China.

ASE Expands in Malaysia

ASE Technology Holding, the world’s largest chip packaging and testing provider, is opening its largest overseas operation in Penang, Malaysia. The company sees Malaysia’s neutral stance in the U.S.-China trade conflict as a strategic advantage. Other chip industry leaders, including Intel, Infineon, and Lam Research, are also expanding in the region as part of a supply chain diversification trend.

ASE is also investing $200 million into a next-generation chip packaging technology, using square substrates instead of traditional round wafers, to enhance AI computing performance.

Apple Increases iPhone Manufacturing in India

Apple has intensified its “China Plus One” strategy by scaling up iPhone production in India, with plans to produce 25% of iPhones there by 2027. While India offers a growing workforce, challenges such as visa restrictions for Chinese engineers, component imports, and gender-related workforce issues remain obstacles to achieving large-scale production.

U.S.-China Trade War Pressures Taiwan’s Semiconductor Industry

Former U.S. President Donald Trump has threatened tariffs of 25% or more on semiconductor imports, including those from Taiwan, claiming that Taiwan “took our chip business away.” Taiwan’s President Lai Ching-te reassured the public, highlighting plans to boost AI chip collaboration with the U.S. and increase defense spending to strengthen ties with Washington.

Chip suppliers are struggling with relocation challenges as U.S. tariffs disrupt overseas capacity planning, while China tightens export controls on materials needed for production in Southeast Asia and India.

Tencent Adopts DeepSeek AI Model

Chinese tech giant Tencent is integrating the DeepSeek AI model into Weixin (WeChat in China). This move adds competition to Baidu’s dominance in Chinese search, as Weixin’s new “AI Search” feature offers “Quick Response” and “Deep Search” options. Other major companies, including Huawei, BYD, and ByteDance, are also backing DeepSeek, intensifying competition in China’s AI chatbot market.

Additional Tech Highlights:

• Tesla faces delays in China licensing amid rising U.S.-China trade tensions.
• TikTok’s influence in European elections raises concerns, with far-right groups gaining traction.
• Nvidia’s partner Siam AI is investing in a 100MW data center for digital sovereignty.
• Bain Capital steps back in a $4 billion bidding war against KKR for Japan’s Fuji Soft.
• China tightens restrictions on tech exports and critical minerals as the trade war escalates.