AI Gossip

Foxconn, the AI server and iPhone assembly giant, said the 2nd quarter “is tracking well above previously anticipated significant growth” in a statement. It reported revenue in May rose 39.6% year-on-year to NT$859.4 billion (US$27.3 B), its 3rd best month ever, led by smart consumer products, which includes smartphones, while AI racks continued to grow. January – May revenue rose 31.79% to NT$3.82 trillion. $NVDA $GOOGL $AAPL #AIservers #servers Source: Dan Nystedt

TSMC’s visibility extends to 2030, the reason for its optimism over the AI trend and confidence in its goal of mid-30% year-on-year revenue growth this year, media report, adding TSMC’s chairman said the explosion of AI-related demand caught industry by surprise, and shortages remain “everywhere across the supply chain.” $TSM $NVDA $GOOGL $AMZN $AMD #semiconductors #semiconductor Source: Dan Nystedt

Nine US trade associations sent a memory chip supply warning letter to the US Treasury and Commerce Secretaries, warning that AI data center demand is disrupting the memory chip supply for everyday consumer goods, resulting in higher prices and reduced memory capacity in consumer products, in addition to widespread supply chain disruption. They urged the administration to do everything possible to boost the memory chip supply in the US and allied nations. $MU $HXSCL $SSNLF #Samsung #SKhynix #semiconductors #semiconductor Source: Dan Nystedt

Synopsys QApr26
- FY26 revenue guidance was raised by $55 million at the midpoint
- IP turns the corner after 3 straight quarters of decline
- Assumes no IP upside from Intel 18A/14A evals in FY26 guidance
- Expects muted IP growth for FY26, though sequential quarterly improvement is expected throughout H2
- China design start environment remains challenged by restrictions
- Analog, industrial, and automotive design starts remain fairly mutedSource: Sravan Kundojjala

Nvidia Vera Rubin-based server racks will start at US$3 million to $7M each, and Big Cloud will pay for fear of losing the AI War, media report, noting deep pockets are a competitive advantage. Server makers used to earn 10% margins when racks cost much less (US$200,000), but no one will pay that on a $3M rack, so gross margins have been seriously diluted. The report cites unnamed supply chain sources. $NVDA $AMZN $GOOGL $META $MSFT #VeraRubin #AIserver Source: Dan Nystedt

MediaTek and Qualcomm are major threats in custom ASIC chips because they can secure precious cutting-edge node and advanced packaging capacity, in addition to managing the complex supply chain, media report, adding the surge in new ASIC orders shows the capacity shortage will not end soon. 

Big ASIC designers, Broadcom, Marvell, Alchip, GUC, tip ASIC revenue to double within 2-3 years, explosive growth. When high memory chip prices crushed smartphone volumes early this year, the silver lining was it opened capacity for MediaTek, Qualcomm to use for their ASIC businesses. $TSM $INTC $QCOM $AVGO $MRVL #MediaTek #Alchip #GUC Source: Dan Nystedt

US chip design giant Marvell raising its outlook on strong AI demand will benefit supplier TSMC, media report, noting Marvell forecast current quarter revenue at US$2.7 billion +/- 5%, above consensus, and full year revenue up 40% to near $11.5 billion, versus prior view $11B. And raised FY2028 revenue target to $16.5B. $MRVL $TSM #semiconductors $ASX Source: Dan Nystedt

The US has no timetable for levying Section 232 tariffs on Taiwan semiconductors, media report, citing Vice Premier Li-chiun Cheng. She said Taiwan hopes any related tariffs “will not come soon.” Taiwan continues to seek the terms from the January US-Taiwan MOU that included heavy investments from Taiwan and won it US Most-Favored-Nation status, as well as a framework for “preferential treatment” if global semiconductor tariffs under Section 232 are officially implemented. $TSM $UMC $ASX $NVDA $AVGO $QCOM $AMZN $GOOGL $AAPL Source: Dan Nystedt

Taiwan’s April export orders rose 48.1% year-on-year to US$87.45 billion, beating the 45% expected and the 15th consecutive month of increases (YoY) amid strong orders from the US, up 62.6%, and ICT (tech, comms) products, up 89.7%, media report, adding the figure fell 4% from March. The US accounted for 37.6% of all orders, followed by ASEAN at 20.5%, and China/Hong Kong at a 17.5% share. $TSM $UMC $ASX #semiconductors Source: Dan Nystedt

TSMC talked AI demand, TeraFab, ASML tools, Memory woes, more at its annual shareholder meeting on Thursday (June 4), via media reports: Thread 1/9

AI demand and TSMC outlook
TSMC Chairman & CEO C.C. Wei: The speed AI has grown caught everyone off guard. Even Nvidia CEO Jensen Huang “didn’t know” it would happen this fast
Rapid growth has made capacity planning difficult. TSMC is expanding as fast as it can to ease supply shortages, and feels the pressure of falling short.

AI adoption is spreading across consumer, enterprise and sovereign AI

“We have strong confidence in the next few years,” he said, and TSMC will continue to grow.

 He continues to see “strong demand for advanced semiconductors” and reiterated full year guidance for revenue growth over 30%.Source: Dan Nystedt

Top-5 WFE companies' cumulative China revenue down -18% q/q and up 5% y/y. 3rd consecutive quarter of y/y growth. All five companies are guiding to 20-30% China share for 2026, down from 30-44% peaks in 2024-25. AMAT back to #1 spot but Lam stand out, only vendor with 4 consecutive y/y growth quarters, accelerating to +36% in 1Q. Non-China trends are strong with leading-edge logic, HBM/DRAM and advanced packaging investments.Source: Sravan Kundojjala