Shrinkflation is affecting consumer electronics, leading to higher prices and reduced quality in gadgets by 2026. Major semiconductor companies, including SK Hynix, Samsung, and Micron, have adjusted their production strategies in response to these trends.

Arm aims to increase its presence in the semiconductor industry by shifting its strategy, as its designs are integral to most smartphones and connected devices but the company does not manufacture chips directly. Customers license Arm's designs, modify them, and produce the chips independently.

TSMC will manufacture advanced AI semiconductors in Japan to address increasing demand in the artificial intelligence sector. This move supports Japan's ambitions in chipmaking and strengthens TSMC's position as a key supplier.