Chips and Wafers’ Lover
AI Gossip- TSMC spent about $14B in the two years before 28nm ramped in 4Q11 and about $76B in the two years before N2's 2Q26 ramp, a 5.7x increase across seven node generations
- The largest single jump came at N3- TSMC does not disclose capex by node so a total capex over the 8 quarters before each ramp a good proxy though not all that capex goes to that node- Leading-edge costs keep going up by double-digit %Source: Sravan Kundojjala
Broadcom and Taiwan’s Powertech will invest US$400 million on a joint venture plant in Singapore for high-end chip packaging substrates, media report, citing Powertech regulatory filings. Powertech developed Fan-Out Panel-Level-Packaging (FOPLP) for large-sized chips such as those used in AI data centers. It also counts AMD as a client for FOPLP. $Broadcom(AVGO.US) $AMD(AMD.US) #Powertech #Singapore
Source: Dan Nystedt
TSMC 2Q26: Revenue at the high-end while GM and OPM all above high-end guidance.
2Q26 vs 2Q25: Revenue: $40.2B (+12% q/q & +34% y/y) Gross Margin: 67.7% (58.6%) Operating Margin: 60.3% (49.6%)1H26 Capex: $26.8 (+36% y/y) Wafer Shipments: 4.336M (+17%) Wafer ASP: $7881 (+13%)Source: Sravan Kundojjala
Nvidia Groq 3 server racks are expected to begin shipping in the 2nd half of 2026, media report, featuring 256 Groq LPUs (Language Processing Units) in 32 compute trays (8 each), with a complex 52-layer circuit board (PCB) for interconnects and power distribution.
The article highlights 2 key materials: Each PCB is made from 12 CCL sheets (Copper Clad Laminate), total 384 CCL sheets per rack, made with Q-Glass (quartz fiber cloth). Each CCL sheet is estimated at NT$10,000, putting the CCL value alone in each rack at NT$3.84 million (US$120,000). Demand for the servers is seen at 12,000 to 13,000 racks in 2026 and 2027. $NVIDIA(NVDA.US) #semiconductors #GroqSource: Dan Nystedt
Amazon AWS Summit Taipei 2026 shows off 3 major chips, Trainium, Inferentia, and Graviton, all big for the Taiwan supply chain, media report:
-Trainium3 AI accelerator already shipping, and production keeps ramping, will hit 2.4 million this year, 3.4m next. -Chip design partner, Alchip; AI server partner Wiwynn (also switch trays)-Heat: Requires 3D Vapor Chambers for thermal, boon to AVI, Microloops, Jentech-Graviton4 next-gen server CPU, with 50% increase in core count, with Foxconn supplying CPU trays-Accton supplying general purpose baseboards and Network Interface Cards (NICs), -Bizlink: 800G power cables and Active Electrical Cables (AECs), upgraded from 400G. $Amazon(AMZN.US) #Alchip #Wiwynn #semiconductorsSource: Dan Nystedt
TSMC 2nd quarter (Q2) conference on Thursday (7/16), media report expectations:
Q2 revenue NT$1.27 trillion (already known, US$ not known)-Net profit seen up 59% to NT$632.6 billion (US$19.6B), 10th straight quarter of growth-Gross margin could exceed 68%-Operating margin seen hitting new high-R&D expense seen hitting record high due to advanced process investmentsQ3 revenue forecast seen +9%-12% vs Q2 in USD terms (some 15% estimates)Full Year-Raise full year revenue to mid-30s% increase from current ‘above 30%’ growth, most bullish scenario sees 40%-Unlikely to raise 2026 capex (some see $58B-$60B) but could discuss plan for next 3-years5-year CAGR forecast 2024-2029:-AI semiconductor revenue CAGR for 2024–2029 seen raised to 70%-80% from mid-to-high 50% nowTSMC Official Q2 Guidance-Revenue US$39.0B to $40.2B-Gross Margin: 65.5% to 67.5% -Operating Margin: 56.5% to 58.5%-Exchange rate forecast NT$31.7 per US dollar.What investors want to know:-Overall AI demand health-CoWoS packaging capacity expansion-N2/N3 ramp and pricing-Is memory shortage hurting demand for logic chips?-Update on global construction projects-Update on advanced processes and packaging (CoPoS, SoIC, etc) R&D-TSMC view on intensified competition from Intel, Samsung-Will TSMC raise prices again in 2027? (5%-10% increase expected)-Gross margin projections for 2026 and 2027-Capex strategy for next 3-years-Semiconductor industry outlookLinks:Source: Dan Nystedt
SEMI raised its global semiconductor equipment sales forecasts for the next 3-years on strong AI-related demand for leading-edge logic & memory chips, and advanced packaging:
2025 final US$134.7 billion2026 seen +23.2% year-on-year to $165.9B vs prior forecast $145B-Fab equipment: $143.9B, +23.1%-Test +31.0% to $15.3B, after strong 2025 +55.3%-Assembly & Packaging +9.6% to $6.7BChina, Taiwan and South Korea are expected to remain the top purchasers.Source: Dan Nystedt
Powerchip (PSMC) is back in the DRAM game in a big way at 50% of 2nd quarter revenue, media report, while Q3 started off with a bang as strong demand prompted a 45% price hike for July DRAM wafer starts.
-Q2 revenue +53% year-on-year to NT$17.3 billion (US$537M)-Net profit NT$3.3 billion-Capex seen US$488 million this year-Key products: DRAM, Flash memory (SLC NAND & NOR), silicon capacitors used in optical communications modules, silicon interposer, PSMC’s PWF (processor-with-flash partnership with Micron) -PSMC is moving equipment to Hsinchu from its Tungluo fab, which was purchased by Micron.Source: Dan Nystedt
Sales of 2nd hand smartphones have surged in Japan due to price hikes on new models, media report, noting high memory chip prices and the falling value of the Japanese yen have caused prices to surge higher than elsewhere. Sales of 2nd hand smartphones rose 12.4% year-on-year to 3.607 million in the April 2025 to March 2026 timeframe, and researchers see the upward trend continuing. $Apple(AAPL.US) $Alphabet(GOOGL.US) $Qualcomm(QCOM.US) #Mediatek
Source: Dan Nystedt
Google has tapped MediaTek for 5G modem chips for the upcoming Pixel 11 smartphone, edging out Qualcomm and Samsung for the win, media report, citing unnamed supply chain sources and technical documents. MediaTek started selling standalone 5G modems to gain more market influence, with a key victory in the Apple Watch supply chain last year. $Alphabet(GOOGL.US) $Apple(AAPL.US) #Mediatek #semiconductors
Source: Dan Nystedt
Taiwan’s Lite-On Technology will invest US$919 million in McKinney, Texas for a new manufacturing site, media report, noting it already operates a plant in Plano, Texas for Battery Backup Units (BBU) used in AI servers. Lite-On’s 2026 capex is expected to rise from NT$13 billion currently, due to the Texas announcement. #LiteOn #Texas #Taiwan
Source: Dan Nystedt
MediaTek has lowered its full year smartphone shipment outlook again, media report, citing unnamed supply chain sources, who also said the amount of wafers TSMC can allocate MediaTek this year will be the key to its ASIC business. $Broadcom(AVGO.US) $Qualcomm(QCOM.US) #GUC #Alchip
Source: Dan Nystedt
Prices of silicon carbide wafers (SiC) are warming up as demand picks up for power semiconductors used in AI data centers and 800V DC electric vehicles, media report, noting distributors say any client asking for additional SiC wafers must pay a premium due to tight supplies.
The SiC market has been through a 2-year downturn due to weak EV demand and overcapacity in China. Rising prices won’t help many producers outside of China yet, since China makers had sold at below-cost levels other companies refused. (Note: Beijing subsidizes many industries, perhaps none more than semiconductor-related). $STMicroelectronics NV(STM.US) $Wolfspeed(WOLF.US) $Coherent Corp.(COHR.US) $ON Semiconductor(ON.US) #Resonac #Rohm #ShinEtsuSource: Dan Nystedt
TSMC plans to build 3 more advanced packaging plants in the Chiayi Science Park (Phase II land), raising the total there to 5, media report, citing Minister Wu Cheng-wen, head of the National Science and Technology Council.
-Equipment is now being installed at TSMC’s 1st & 2nd plants, with mass production set for 2027.-Construction on TSMC’s 3rd began in June (2026)-The government has already retained land nearby for a possible new Phase III to the Chiayi Science Park-Nearby industrial parks will host TSMC suppliers, with officials promising they will be within a 30-minute radius.Source: Dan Nystedt
TSMC’s 2nd quarter revenue rose 36% year-on-year to a record high NT$1.27 trillion (US$40.07B), and at the top end of guidance of US$39.0 to $40.2B, on strong demand for AI chip production.
The prior record was NT$1.13 trillion from the 1st quarter this year.TSMC did not announce Q2 revenue. The figure is based on April-June monthly revenue. 1/3 $Taiwan Semiconductor(TSM.US) $Apple(AAPL.US) $NVIDIA(NVDA.US) $Broadcom(AVGO.US) #semiconductors #semiconductorSource: Dan Nystedt
ASE Technology’s 2nd quarter revenue rose to a record high NT$191.06 billion (US$5.95B), up 26.7% year-on-year due to strong AI-related sales, media report. The chip packaging and testing giant reported June revenue rose 32.9% to NT$65.78 billion, its 2nd best month ever. $Advanced Semiconductor Engineering(ASX.US) $NVIDIA(NVDA.US) $AMD(AMD.US) $Amkor Tech(AMKR.US) #semiconductors
Source: Dan Nystedt
Nanya Technology plans to spend NT$200 billion (US$6.2 billion) on 2027 capex, up from this year’s NT$50B+, media report. Nanya is aiming for 30,000 wafers per month (wpm) capacity by 2028 at its new fab, which will ultimately reach 45Kwpm. Around NT$100B has already been spent on the total NT$480B fab project. Nanya is the biggest Taiwan DRAM maker. $Applied Materials(AMAT.US) $ASML(ASML.US) $Lam Research(LRCX.US) $KLA(KLAC.US)
Source: Dan Nystedt
TSMC plans to hike prices on mature-process chip manufacturing by a single-digit percent in the 4th quarter, media report, citing multiple unnamed chip design houses, with new pricing to take effect in January. Price hikes will vary by customer. Media surmise the AI boom is driving demand beyond advanced node (GPU, ASIC) chips into mature chips such as power management (PMIC), more. $Taiwan Semiconductor(TSM.US) $STMicroelectronics NV(STM.US) #semiconductors
Source: Dan Nystedt
TSMC’s 1.4nm fab is far ahead of schedule, media report:
-First 1.4nm fab seen finished by April 2027-Pilot production to begin early in the 3rd quarter, 2027-Mass production is on track for mid-2028. -Construction remains ongoing at the 1.4nm fab in the Central Taiwan Science Park (CTSP) near Taichung. -TSMC is also investing NT$100 billion on 2 advanced packaging plants nearby in CTSP’s Erlin Park $Taiwan Semiconductor(TSM.US) $Apple(AAPL.US) $NVIDIA(NVDA.US) $Qualcomm(QCOM.US) $Alphabet(GOOGL.US) #semiconductorsSource: Dan Nystedt
Google plans to unveil its new Pixel 11-series smartphones on August 12, equipped with its self-developed Tensor G6 chip manufactured by TSMC on 2nm, media report, noting 3 other major TSMC 2nm projects in smarpthones to be released in September or Q4:
-Apple A20-MediaTek Dimensity 9600-Qualcomm Snapdragon Elite Gen 6$Alphabet(GOOGL.US) $Taiwan Semiconductor(TSM.US) $Apple(AAPL.US) $Qualcomm(QCOM.US) #Mediatek #semiconductorsSource: Dan Nystedt
Meta’s chip push explodes with help from TSMC, MediaTek, Qualcomm, Arm, Broadcom, DigiTimes reports:
-Meta also working with Qualcomm, MediaTek on new ASIC projects-Will use Qualcomm CPUs, working with Arm on CPU project-Broadcom readied ‘Iris’ chip in just 6-months (testing, validation) for September production, shows Meta revving up chip ops-Key reason for Meta chip moves: Reduce computing costs $Meta Platforms(META.US) $Qualcomm(QCOM.US) $Broadcom(AVGO.US) $Arm(ARM.US) $Taiwan Semiconductor(TSM.US) #Mediatek #semiconductorsSource: Dan Nystedt
1/ ASPEED ($5274 TT) is one of those great, relatively under the radar, AI supply chain companies.
ASPEED doesn't make AI GPUs. It makes one of the most essential chips found inside virtually every AI server: the Baseboard Management Controller (BMC).And it's, therefore, one of the purest "picks and shovels" plays in AI.Source: Chips & Wafers
Taiwan’s semiconductor exports in June rose 33.4% year-on-year to US$24.11 billion, raising 2nd quarter chip exports to $71.15B, up 43.7%, media report.
-Chip exports for the 1st half of 2026 +43.9% to $133.17B, of that, DRAM chip exports +158.5% to $18.55B Overall exports in June hit $74.83B, the strongest June ever and +40.3% over last year amid blockbuster demand for AI-related goods.June imports rose at an even faster pace, +51.8% to $62.63B in part due to higher chip equipment imports, +58.9% to $6.11B -1st half-2026 chip equipment imports +30.8% to $25.72B-1st half-2026 chip imports (mainly DRAM/HBM) +62.6% to $95.55B $Taiwan Semiconductor(TSM.US) $United Microelectronics(UMC.US) $Advanced Semiconductor Engineering(ASX.US) #semiconductorsSource: Dan Nystedt
Meta will have an AI chip codenamed ‘Iris’ in production from September as part of a plan to double compute to 14GW next year, after it deploys 7GW this year, Reuters reports:
-Iris is part of a 4-generation MTIA project from its inhouse design team. -The AI processors are aimed at improving the AI used with Facebook/Instagram-Broadcom is Meta’s chief design partner. -TSMC will manufacture Iris.-Meta has signed multiple long term supply agreements with: Samsung (memory chips), SanDisk (flash storage), Sumitomo (fiber optic)-The plan remains to launch a new AI processor every 6 months through 2027. $Meta Platforms(META.US) $Taiwan Semiconductor(TSM.US) $Broadcom(AVGO.US) #semiconductorsSource: Dan Nystedt
