Chips and Wafers’ Lover
Top-5 semicap DRAM equipment revenue up 80% y/y in 3QCY26. Another ATH and ASML gaining share. $35B+ annual run-rate for top-5 semicap DRAM equipment revenue in 3Q26. Showing no signs of slow down. KLA, for example, expects 60% of its process control revenue to come from memory (mostly DRAM), up from 30%+ in 2026.
Source: Sravan Kundojjala
OpenAI CEO Sam Altman met with Foxconn Chair Young Liu in Taiwan on Friday (10/30) to further discuss their partnership, Foxconn’s chairman said, media report, adding specific joint projects will be announced once finalized.
Liu said there is no AI bubble as demand continues to be massive. He reiterated Foxconn’s 2027 revenue growth forecast at a double digit % for 2027. The world’s biggest contract electronics manufacturer now operates over 270 factories worldwide, and AI server rack capacity as hit 2,000 units per week, from 1,000 at the same time last year. Foxconn also cut the assembly time of AI server compute trays from over two hours down to just 20 minutes. $NVIDIA(NVDA.US) $Amazon(AMZN.US) $Alphabet(GOOGL.US) $Microsoft(MSFT.US) $Meta Platforms(META.US) $Oracle(ORCL.US) #servers #openaiSource: Dan Nystedt
Micron Taiwan paid out annual bonuses on Friday (10/30) equal to about 7.5x to 12.5x months of base salary, alongside a Maxout Mass-Production Bonus (20% of annual salary) and a one-time NT$1 million (US$30,655) appreciation bonus for those eligible. Starting in FY2027, a new quarterly profit-sharing scheme will run parallel to existing bonuses.
The combined package brings total annual compensation to 60+ months of pay for roughly 700 of its 4,300 production line workers – though local unions have been pushing for 83-months and a permanent 15% operating profit-sharing model like Samsung and SK Hynix. $Micron Tech(MU.US) $SK Hynix(SKHY.US) $SSNLF #Samsung #semiconductorsSource: Dan Nystedt
Intel 4Q26
- Revenue up 2.5% q/q and 21% y/y to $16.5B at 44.1% GM; QDec guided to $15.5Bat 38% GM.- 2026 gross capex is about $20B; 2027 to be up strongly; Equipment POs up 40% q/q- most of the spending on equipment (other than Ohio construction)- Foundry revenue up 16% q/q to $6.7B. External revenue up 40% q/q to $411M (one-off program benefit)Source: Sravan Kundojjala
TSMC’s plan for 24-hour R&D failed in 6-months during 40nm process development, said Co-COO Y.P. Chyn, media report. The ‘Night Owl’ program was designed to overtake global rivals by running R&D 24/7 against their 8-hour days. Instead, TSMC found success through its ‘One Team’ approach, which broke down barriers between teams by combining R&D and manufacturing personnel to tackle tough jobs jointly. R&D relies on brain power, creativity, problem solving, said Chyn, not adding more work hours. $Taiwan Semiconductor(TSM.US) #semiconductors
Source: Dan Nystedt
ASE, the chip packaging & testing giant 3rd quarter highlights, media report:
-Raised capex to US$11.5 billion from $10.5 billion; 2027 to be even higher-Forecast 4th quarter revenue +6%-8% from the 3rd -Raised 2026 advanced packaging revenue forecast to US$4 billion from $3.7B revenue, sees figure doubling in 2027.-CPO revenue to top US$500 million in 2027$Advanced Semiconductor Engineering(ASX.US) #semiconductorsSource: Dan Nystedt
The Taiwan Semiconductor Industry Association backed a government review of restarting nuclear power plants in Taiwan, so long as strict safety requirements are maintained, media report.
“A stable and sufficient electricity supply is crucial to the semiconductor industry,” said TSIA Chair Cliff Hou, who is also a senior VP at TSMC.Taiwan’s president has said no form of energy should be ruled out based on ideology – including nuclear – important because his party has a deep, longstanding anti-nuclear stance. $Taiwan Semiconductor(TSM.US) #TSIA #semiconductorsSource: Dan Nystedt
TSMC paid NT$38.8 billion (US$1.2 billion) for two plants from AUO, media report, citing AUO Chair Paul Peng on the company’s 3rd quarter call. AUO’s board has already approved the sale of the two display panel plants, one 5th generation and one Gen-7.5. The sale includes some equipment. TSMC is expected to gain 5.9 million sq. feet of usable floor space that it will convert for CoWoS advanced packaging. $Taiwan Semiconductor(TSM.US) #AUO #semiconductors
Source: Dan Nystedt
Samsung 3Q26
- Semiconductor revenue up 22% q/q and 335% y/y to $103.8B; 72% OPM- Memory up 23% q/q to $99.3B; Implied S.LSI + Foundry $4.5B- 10 LTA customers; Targets 60%-70% of memory capacity for LTAs- semi capex $53.1B in 2026; Memory capex driven by new fabs; Foundry capex for TaylorSource: Sravan Kundojjala
Samsung Electronics raised its 2026 semiconductor capex plan to ₩76.8 trillion won (US$53 billion), from ₩47.5 trillion last year ($33.4 billion) amid strong AI-related demand expected to continue for years, executives said during its 3rd quarter conference. ₩52.8T has already been spent thru Q3.
-2027 capex to rise further versus 2026-New fabs and advanced packaging plants are being planned for the US and Korea to meet strong AI demandTaylor, Texas site capex set to rise – new fab building under review-Taylor fab to start operations in 2027-Equipment move-in going on now $ASML(ASML.US) $Applied Materials(AMAT.US) $Lam Research(LRCX.US) $KLA(KLAC.US) $Tokyo Electron(TOELY.US) #Texas #Taylor #SemiconductorsSource: Dan Nystedt
The CEO of UMC, Taiwan’s 2nd biggest chip foundry, said its blended average selling price will rise about 10% in 2027 and he expects a utilization rate over 90%, media report, adding AI will reach 25% of revenue within 3-years. UMC set its 2026 capex plan at US$2 billion, but the board also approved another US$3.2 billion in capex for an unspecified time period. $United Microelectronics(UMC.US) #Semiconductors
Source: Dan Nystedt
TSMC is nearing a deal with AUO to buy up to 4 plants to convert for CoWoS advanced packaging, media report, citing unnamed supply chain sources. TSMC has sent multiple teams to inspect AUO plants in the Central Taiwan Science Park and is expected to ink a deal for 2 plants and a right of first refusal for 2 more. Buying older plants with cleanrooms shortens the time to new CoWoS capacity, compared to building anew.
A purchase would also boost TSMC affiliate Xintec (41% stake), which has already booked out space in its new P2 plant and needs more to meet TSMC demand for System-Level Testing (SLT). $Taiwan Semiconductor(TSM.US) $NVIDIA(NVDA.US) $Broadcom(AVGO.US) $Alphabet(GOOGL.US) $Amazon(AMZN.US) #AUO #semiconductorsSource: Dan Nystedt
Amkor 3Q26
- Rev +4.9% q/q and +0.2% y/y to $1.991B, slightly under the $2.0B guide midpoint- 4Q26 guided $1.9-2.0B (-2% q/q)- FY26 capex narrowed to $2.5B, the low end of $2.5-3.0B as Arizona construction payments shifted- 2027 capex steps up, with facilities alone above $2B (Arizona up to 15% of $12B, Korea $400-450M, Vietnam ~$50M) before any equipment- AZ Phase 2 construction starts in late '27 and capex peaks 2028-29 while Phase 2 construction overlaps Phase 1 tool-inSource: Sravan Kundojjala
Kioxia details its MSA-CBA design for ultra-high-density 3D NAND flash memory (BiCS Flash), using copper direct bonding to stack multiple 218-layer cell array wafers onto a CMOS wafer. The technology offers a path to 1,000+ layers. Prototype devices have also demonstrated successful QLC (4 bits/cell) operation and high-temperature data retention. #Kioxia $Sandisk(SNDK.US) $SSNLF $SK Hynix(SKHY.US) #semiconductors
Source: Dan Nystedt
TSMC’s massive cash pile is helping relieve liquidity pressure in Taiwan’s banking system – and earning higher yields for TSMC, media report. TSMC’s deposit rate jumped to 2.10% from 1.75% in just four months as banks compete for stable deposits (6 to 12 months) to meet strict liquidity rules.
It’s causing pain. State-backed banks are now issuing 1.775% ‘Youth Housing’ mortgages at a 30+ basis point negative spread vs TSMC deposits. The traditional safety net in Taiwan has long been postal savings, but much of that is tied up in NT$600 billion energy loans to TaiPower and CPC Corp. $Taiwan Semiconductor(TSM.US) #Taiwan #Banking #semiconductorsSource: Dan Nystedt
Micron Taiwan’s deal with its biggest union (Taichung) triggered a viral wave of inquiries on how to apply for a job, media report.
-Pay for 80% of workers will rise to 2.7x of current pay due to the deal. -Fab (production line) Operators pay will rise to NT$2 million+ from NT$630,000 now (US$62,900+ from $19,800). -Entry level Engineers: NT$4 million vs NT$1.45M-Mid-Senior Engineers: NT$6 million vs NT$2M $Micron Tech(MU.US) #semiconductorsSource: Dan Nystedt
Taiwan’s semiconductor industry will account for 30% of the nation’s total electricity consumption by 2035, and state-run TaiPower plans to invest NT$30 billion (US$920M) over 15-years to strengthen direct power delivery to industrial parks to meet demand, media report.
Taiwan’s semiconductor industry is expected to consume 110 billion kWh of power by 2035, up from 52 billion kWh this year. To meet this massive increase, TaiPower will build or expand 43 substations, add 1,922-kilometers of new transmission lines, and increase transformer capacity by 52,450 MVA (MegaVolt-Ampere). $Taiwan Semiconductor(TSM.US) $United Microelectronics(UMC.US) $Advanced Semiconductor Engineering(ASX.US)Source: Dan Nystedt
Nvidia has been working with key supplier Foxconn—the world’s biggest AI server and iPhone assembler—to turn its 200+ global manufacturing plants into self-learning smart factories using AI, media report. Foxconn has revealed major initial results:
-Slashed assembly-line defect rates by over 90%-Cut injection molding changeover work by 50%-Reduced labor hours by 25% via automated production schedulingFoxconn also trained its 120-billion parameter LLM, FoxBrain, 2.48x faster using Nvidia DGX SuperPods (vs. H100), processing 1 trillion tokens in 12 days. Across its facilities, Foxconn uses Nvidia Omniverse for digital twin factory planning, Isaac for production robotics, alongside Mission Control, NIM microservices, NVIDIA Run, more. $NVIDIA(NVDA.US) $Apple(AAPL.US) #Foxconn #FoxBrain #DGXSuperPodSource: Dan Nystedt
TSMC plans to hike CoWoS advanced packaging prices another 20% as demand for AI chips continues to rise and demand for advanced packaging extends to other types of chips, media report, citing unnamed supply chain sources.
Delivery times (lead times) have already been extended due to capacity constraints – and competition is making the the situation worse as rivals vie for production line machinery. Equipment delivery times are now up to 8-months, vs 3 – 6-months previously, and prices are rising. Investment bankers estimate TSMC’s monthly CoWoS capacity will exceed 130,000 wafers per month (wpm) this year and 200,000wpm in 2027. $Taiwan Semiconductor(TSM.US) $Intel(INTC.US) $Amkor Tech(AMKR.US) $Advanced Semiconductor Engineering(ASX.US) #semiconductorsSource: Dan Nystedt
AI boom triggers air cargo rush as freight rates set to rise 10% in November, media report, adding Eva Air President Clay Sun said rates could go even higher amid the traditional peak season for consumer electronics.
US firms are now chartering nearly 100 charter flights a month for chips & AI servers/parts to the US, with spot rates as high as NT$400 per kilogram (US$12.50) for priority jobs (current average is NT$357-NT$387/kg with fuel surcharge). Shipments of AI-related gear are now a year-round cash cow for air cargo firms.Source: Dan Nystedt
AMD CEO Lisa Su’s dad on raising “Semiconductor Queen” : 2 principles from the Talmud.
Chun Hwai Su (C. H. Su) said his daughter was very bright and often bored in school, so he sought new parenting approaches. The Talmud: C.H. Su worked as a statistician in the New York City government after arriving in America, and began studying the Jewish religious text because top colleagues were often Jewish.Lesson 1: “One whose deeds exceed his wisdom, his wisdom will endure.” Real learning means applying knowledge. People see what you do, not what you know.Lesson 2: Avoid limits and teach kids to outperform themselves: Avoid overprotecting. Encourage kids to surpass their own abilities rather than just competing with others.Examples: -Lisa loved taking toys apart and didn’t always know how to put them back together. Instead of scolding her, C.H. bought better toys so she could keep exploring how things worked.- When she was ahead and bored in class, he encouraged her to help classmates. The shy girl became more outgoing and was elected student council president.“If Lisa had been educated in Taiwan, in a Taiwanese environment, she wouldn’t be where she is today.” – C. H. Su.(Post is based on this newspaper article, which is based on a 2016 magazine interview)Source: Dan Nystedt
Cambricon, China’s 2nd biggest AI chip developer, posted 3rd quarter revenue of 3.531 billion yuan (US$496M), far short of the 6.26 billion expected due to capacity constraints and memory chip shortages, media report, noting its net profit soared 148% to 1.404 billion. Cambricon said demand remains strong and it will meet its full-year revenue forecast of 13.5 billion, up from 2025 revenue 6.5B. #Huawei #Cambricon
Source: Dan Nystedt
Apple raised iPhone Duo orders 30% to supply chain partners after the foldable swiftly sold out on its website and major retailers Friday, media report, adding the next big shipment is due Jan. 22 next year. Analysts now forecast 8 to 10 million iPhone Duo to be built this year and 33M in 2027. The report highlights suppliers TSMC, Foxconn and hinge-maker Shin Zu Shing. $Apple(AAPL.US) $Taiwan Semiconductor(TSM.US) #Foxconn #iPhoneDuo
Source: Dan Nystedt
Rumor: Nvidia, AMD and Intel have paid over a combined US$5 billion to reserve long term capacity for substrates (ABF, etc.), media report, citing industry rumors, a figure that matches capital expenditure announcements by Taiwan’s top three substrate makers, Unimicron, Kinsus and Nanya PCB, a combined record high NT$161.2 billion (US$5.04B) for new plants and production lines.
-Intel has reserved around US$3 billion in substrate supplies for its advanced packaging business-AMD announced US$10 billion investment in Taiwan supply chain, around $1 billion seen going to substrates-Nvidia investment in Taiwan substrates partners seen at US$1 billion $Intel(INTC.US) $AMD(AMD.US) $NVIDIA(NVDA.US) #semiconductorsSource: Dan Nystedt
MCU chip prices continue higher amid rising industrial and AI data center demand, while Tesla’s new Roadster ‘Flying Car’ is injects fresh excitement into automotive, media report, noting Taiwan microcontroller unit (MCU chip) maker Nuvoton has raised prices 10% – 20% since August on all new orders. The global MCU chip market is expected to grow 10% this year. $Tesla(TSLA.US) $NXP Semiconductors(NXPI.US) $Infineon Technologies(IFNNY.US) $Microchip Tech(MCHP.US) $STMicroelectronics NV(STM.US) $Texas Instruments(TXN.US) #Renesas #semiconductors
Source: Dan Nystedt