US-China trade tensions escalate with tariff increases and export controls on rare earths and lithium batteries. Geopolitical conflicts undermine year-end consumer confidence, causing ICT demand to weaken. Despite robust AI infrastructure orders driving record shipments, smartphone and laptop markets remain cautious. The MLCC industry faces rare earth supply challenges, prompting suppliers to diversify sourcing strategies while manufacturers optimize costs and adjust capacity allocation.

Key Highlights

• US-China trade friction intensifies with reciprocal countermeasures including tariff escalations and export restrictions on strategic materials.
• Geopolitical tensions and inflationary pressures dampen consumer and business confidence, creating uncertainty for holiday season demand.
• ICT product markets show weakness with smartphone forecast orders declining quarter-over-quarter and laptop procurement momentum slowing.
• AI infrastructure orders maintain strong momentum, driving record-high shipments for certain manufacturers and providing market bright spots.
• MLCC industry confronts rare earth export control challenges, with suppliers establishing diversified procurement networks and alternative material sources.
• Manufacturers actively restructure capacity allocation, shifting from smaller dimensions to AI applications, while optimizing raw material costs through localization initiatives.
• Technology industry faces heightened policy uncertainties, with operations increasingly affected by geopolitical interference and accelerating supply chain regionalization trends.

Table of Contents

1. Market Update
2. Trendforce's View 

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