Core Viewpoint - The article discusses the significant advancements and challenges in TSMC's CoWoS (Chip-on-Wafer-on-Substrate) packaging technology, particularly in relation to NVIDIA's evolving needs in the AI sector, highlighting the shift towards CoWoS-L and the emergence of CoPoS (Chip-on-Panel-on-Substrate) as a potential alternative [1][3][11]. Group 1: TSMC and NVIDIA Collaboration - TSMC has become a crucial partner for NVIDIA, especially in the CoWoS technology, with NVIDIA's CEO stating that they have no alternative to TSMC in this area [1]. - NVIDIA is transitioning to use more CoWoS-L packaging for its upcoming Blackwell series products, which require high bandwidth interconnects [3][6]. Group 2: CoWoS Technology Developments - TSMC has been expanding its CoWoS capacity significantly over the past two years and is reportedly surpassing ASE Group to become the largest packaging player globally [1]. - The CoWoS technology is evolving, with TSMC planning to introduce CoWoS-L with a mask size of 5.5 times by 2026 and a record 9.5 times by 2027 [9]. Group 3: Challenges in CoWoS Technology - The increasing chip sizes pose challenges for CoWoS packaging, as larger chips reduce the number of chips that can fit on a 12-inch wafer [6]. - TSMC is facing difficulties with flux usage in CoWoS, which is essential for chip bonding, and is exploring flux-free bonding technologies [7][9]. Group 4: Emergence of CoPoS Technology - CoPoS technology is being developed as a next-generation alternative to CoWoS, allowing for higher chip density and efficiency by using a panel instead of a wafer [11][14]. - TSMC's AP7 factory is set to become a key hub for advanced packaging, focusing on CoPoS production [12]. Group 5: Comparison of FOPLP and CoPoS - FOPLP (Fan-out Panel-Level Packaging) and CoPoS both utilize large panel substrates but differ in architecture and application, with CoPoS offering better signal integrity due to its use of an interposer [12][13]. - CoPoS is positioned for high-end applications in AI and HPC systems, while FOPLP is more suited for mid-range applications [13][14].

Core Viewpoint - The article discusses the delays and challenges faced by semiconductor manufacturing projects in the U.S. due to local opposition and regulatory hurdles, particularly highlighting the impact of the CHIPS Act and geopolitical tensions in the semiconductor industry [1][5][6]. Group 1: Project Delays and Local Opposition - Amkor's $2 billion advanced packaging plant in Peoria, Arizona, faces local resistance due to concerns over water resources and traffic congestion, with residents threatening legal action [2]. - Micron's $100 billion DRAM production facility in Clay, New York, has encountered delays in environmental assessments and public feedback, pushing back the construction timeline originally set for 2024 [3][4]. - The delays in Micron's project could result in a loss of $5 million per day, affecting its ability to meet production goals for DRAM in the late 2020s [3]. Group 2: Importance of Semiconductor Manufacturing - The advanced packaging plant by Amkor is crucial for the local semiconductor supply chain, which includes TSMC's Fab 21 and multiple suppliers, and is expected to be one of the largest in the world [2]. - Micron's facility is intended to be its largest manufacturing base and a key part of its strategy to increase U.S. production of DRAM, aiming for 40% of its output to be produced domestically by the mid-2030s [4]. Group 3: Geopolitical Context and Industry Dynamics - The semiconductor trade, valued at $600 billion, has become a focal point in discussions about global security and economic dominance, particularly between the U.S. and China [5]. - The CHIPS Act aims to bolster U.S. semiconductor manufacturing and reduce reliance on Taiwan, which currently produces about 90% of the world's advanced semiconductors [6][7]. - The article highlights the contrasting strategies of the Biden and Trump administrations regarding semiconductor policy, with Biden focusing on investment incentives and Trump emphasizing tariffs [7][8].

Core Viewpoint - The article discusses the significant advancements and challenges in TSMC's CoWoS (Chip-on-Wafer-on-Substrate) packaging technology, particularly in relation to NVIDIA's evolving needs in the AI sector, highlighting the shift towards CoWoS-L and the emergence of CoPoS (Chip-on-Panel-on-Substrate) as a potential alternative [1][3][10]. Group 1: TSMC and NVIDIA Collaboration - TSMC has become a crucial partner for NVIDIA, especially in the CoWoS domain, with NVIDIA's CEO Jensen Huang stating that they have no alternative to TSMC for this advanced packaging technology [1]. - NVIDIA is transitioning to use more CoWoS-L packaging for its latest Blackwell series products, which require high bandwidth interconnects between chips [3][5]. Group 2: CoWoS Technology Evolution - The CoWoS technology is facing challenges due to increasing chip sizes, with AI chips potentially reaching dimensions of 80x84 mm, limiting the number of chips per wafer [5]. - TSMC is exploring alternatives to traditional solder paste bonding methods due to difficulties in maintaining yield rates, including the development of no-solder paste bonding technology [6][9]. Group 3: Future Developments in Packaging - TSMC plans to introduce CoWoS-L with a mask size of 5.5 times the current size by 2026, and a record 9.5 times mask size CoWoS by 2027 [9]. - CoPoS technology is being developed as a next-generation packaging solution, with plans for mass production by 2029, aiming to enhance efficiency and reduce costs by utilizing larger rectangular substrates [12][14]. Group 4: Comparison of Packaging Technologies - CoPoS differs from FOPLP (Fan-out Panel-Level Packaging) in that it uses an interposer for better signal integrity and power delivery, making it suitable for high-performance applications [13]. - The transition from traditional organic substrates to glass substrates in CoPoS is expected to improve interconnect density and thermal stability, positioning it as a potential successor to CoWoS-L [14].

Industry Rating - The report assigns a "Leading" investment rating to the technology industry, indicating a positive outlook for the sector over the next 12 months [1][38]. Core Insights - The technology sector has shown significant stock price recovery, driven by strong demand for advanced processes and memory chips. The MSCI Information Technology Index increased by 9.6% from May 10 to June 9, outperforming the MSCI Global Index, which rose by 5.5% [3]. - Trade uncertainties have eased, contributing to a rebound in global stock markets. The report highlights that the U.S. tech stocks are performing stronger than the broader market, while Hong Kong tech stocks lag behind [3]. - TSMC reported a 40% year-on-year revenue increase in May, indicating sustained demand for AI chips. The report remains optimistic about the long-term development of global AI infrastructure [3]. - Memory chip prices have continued to rise, with DDR4 prices increasing by 22.2% in April and NAND Flash prices up by 34% compared to the end of last year. The report anticipates that memory prices will maintain an upward trend due to supply-side adjustments and increased demand from downstream customers [3]. Summary by Sections Investment Recommendations - The report suggests that despite ongoing trade-related uncertainties, investors have reached a consensus that the worst-case scenario is unlikely to return. It recommends focusing on areas with high certainty, such as AI technology and domestic semiconductor supply chain developments [3][37]. Market Performance - The report provides a comparative analysis of various indices, showing that the technology sector has outperformed other sectors, with significant gains noted in the semiconductor and software industries [5][8]. Company-Specific Insights - TSMC's revenue for May was reported at NT$320.5 billion, reflecting a 40% year-on-year increase, which is attributed to strong AI chip demand. The company is expected to maintain its technological advantage as it moves towards 2nm production in the second half of 2025 [3][32]. - The report also highlights specific stock recommendations, including "Buy" ratings for companies like NVIDIA and AMD, indicating potential upside in their stock prices [37].

Group 1 - TSMC's first factory in Japan has begun mass production, leading to increased logistics demand in Kumamoto Prefecture as the semiconductor industry gathers [1] - Nissin plans to build a new logistics warehouse in Kumamoto, with an investment of approximately 4 billion yen (about 198 million RMB), aimed at supporting semiconductor manufacturing [1] - Construction delays for Nissin's logistics warehouse are attributed to labor shortages and difficulties in obtaining necessary construction equipment [1] Group 2 - The concentration of the semiconductor industry in the Kyushu region, including Kumamoto, is increasing, but construction delays for factories and warehouses are becoming common due to material and labor shortages [2] - Air Water's logistics center related to semiconductor manufacturing has faced delays, pushing its operational start from summer 2024 to May of this year [2] - TSMC's expansion plans in Kumamoto are slightly delayed due to severe traffic congestion, highlighting challenges faced by semiconductor manufacturing projects in Japan [2]

Group 1 - The Magnificent 7 index of major US tech stocks fell by 0.89%, closing at 165.71 points [1] - Amazon shares decreased by 2.03%, closing at $213.20, with a market cap of $2.26 trillion, down 2.82% [2] - Apple shares dropped by 1.92%, closing at $198.78, with a market cap of $2.97 trillion, down 20.43% [2] - Meta Platforms saw a decline of 1.18%, closing at $694.14, with a market cap of $1.75 trillion, up 18.66% [2] - Nvidia shares fell by 0.78%, closing at $142.83, with a market cap of $3.49 trillion, up 6.38% [2] - Alphabet (Google A) shares decreased by 0.70%, closing at $177.35, with a market cap of $2.15 trillion, down 6.09% [2] - Tesla shares increased slightly by 0.10%, closing at $326.40, with a market cap of $1.05 trillion, down 19.18% [2] - Microsoft shares rose by 0.36%, closing at $472.62, with a market cap of $3.51 trillion, up 12.56% [2] Group 2 - AMD shares fell by 1.68%, closing at $121.17, with a market cap of $196.46 billion, up 0.31% [2] - Berkshire Hathaway B shares decreased by 0.61%, closing at $488.32, with a market cap of $1.05 trillion, up 7.73% [2] - Eli Lilly shares increased by 0.18%, closing at $808.61, with a market cap of $766.35 billion, up 5.14% [2] - TSMC ADR shares rose by 0.77%, closing at $214.10, with a market cap of $1.11 trillion, up 8.83% [2]

Industry Investment Rating - The report assigns a "Leading" investment rating to the technology industry, indicating a positive outlook for the sector over the next 12 months [1]. Core Insights - The technology sector has shown significant stock price recovery, driven by strong demand for advanced processes and memory chips [1]. - Trade uncertainties have eased, contributing to a rebound in global stock markets, with the MSCI Information Technology Index rising by 9.6% from May 10 to June 9, outperforming the MSCI Global Index, which increased by 5.5% [3]. - TSMC reported a 40% year-on-year revenue increase in May, indicating sustained demand for AI chips, while storage prices for DRAM and NAND Flash have continued to rise, suggesting ongoing cost pressures in the smartphone and consumer electronics sectors [3][4]. Summary by Sections Industry Performance - The MSCI Information Technology Index outperformed other sectors, with a notable increase of 9.6% compared to the MSCI Global Index's 5.5% [3]. - TSMC's revenue for May reached 320.5 billion New Taiwan Dollars, reflecting a 40% year-on-year growth, despite an 8% decline from the previous month [3][33]. Market Trends - Memory chip prices have seen significant increases, with DDR4 prices rising by 22.2% from March to April, and NAND Flash prices increasing by 34% compared to the end of last year [3][34]. - The report anticipates that storage prices will continue to rise due to supply-side adjustments and increased demand from downstream customers [3]. Investment Recommendations - Investors are encouraged to focus on areas with high certainty, particularly in AI and domestic semiconductor sectors, as well as potential improvements in automotive and industrial demand [3]. - The report highlights specific companies with buy ratings, including Nvidia, AMD, and TSMC, indicating strong potential for growth in the semiconductor design and foundry sectors [37].

Core Viewpoint - The article discusses the critical role of Electronic Design Automation (EDA) in the semiconductor industry, highlighting the challenges faced by China's integrated circuit industry due to recent export controls on EDA tools by the U.S. government. Group 1: EDA Overview - EDA, or Electronic Design Automation, is essential software for chip design, akin to CAD software in architecture, and is crucial for integrating billions of transistors into tiny chips [4][5]. - The top three EDA suppliers dominate nearly 80% of the market, all of which are U.S. companies, while China's domestic EDA replacement rate is barely over 10% [7][8]. Group 2: Historical Context - EDA emerged alongside the integrated circuit industry, initially aimed at automating the labor-intensive process of circuit design [10]. - The first EDA tools were developed in the 1970s, with significant contributions from companies like Intel, which established a dedicated EDA research center in Israel [14][15]. Group 3: Challenges for China - China's EDA development has been hampered by historical technology embargoes, particularly the "Paris Pact," which restricted access to advanced EDA tools [23][24]. - The introduction of the "Panda System" in the 1990s marked an early attempt at developing domestic EDA software, but it ultimately failed due to aggressive competition from established U.S. EDA firms [25][26]. Group 4: Recent Developments - The recent U.S. export controls on EDA tools pose a significant threat to China's semiconductor industry, as companies may lose access to essential software updates and support [28][30]. - Without access to the latest EDA tools, Chinese companies may struggle to keep pace with advancements in chip manufacturing processes, particularly in obtaining Process Design Kits (PDKs) necessary for production [31][34]. Group 5: Industry Dynamics - The interdependence of EDA tools, chip design companies, and foundries illustrates the complex ecosystem of the semiconductor industry, where each component must adapt to the others [35][36]. - The high investment and technical challenges in the semiconductor industry create significant barriers for new entrants, making it difficult for China's EDA sector to catch up [38][39]. Group 6: Future Outlook - Achieving breakthroughs in advanced EDA tools in China will require collaboration across the entire semiconductor supply chain, emphasizing that the challenges are engineering problems rather than scientific ones [42]. - The article concludes that the future of China's EDA industry hinges on overcoming historical barriers and fostering a robust ecosystem that can support innovation and development [43].

Core Viewpoint - The global semiconductor foundry market is undergoing significant shifts, with Samsung Electronics facing increasing pressure from China's SMIC, leading to a narrowing market share gap. TSMC remains the dominant player, while Samsung's position as the second-largest foundry is at risk due to various geopolitical and technological factors [1][2]. Group 1: Market Overview - According to TrendForce, the total revenue of the top ten foundries in Q1 2025 is projected to be $36.43 billion, a decrease of 5.4% from the previous quarter's $38.48 billion, attributed to seasonal market slowdowns [1][3]. - Despite the overall revenue decline, TSMC's revenue in Q1 2025 is $25.52 billion, down 5% from Q4 2024, yet its market share increased by 0.5 percentage points to 67.6%, further widening the gap with Samsung [2][3]. Group 2: Company Performance - Samsung's revenue in Q1 2025 fell significantly by 11.3% to $2.89 billion, resulting in a market share drop from 8.1% to 7.7%, primarily due to limited benefits from Chinese consumer subsidies and U.S. restrictions on advanced process nodes [4]. - In contrast, SMIC's revenue grew by 1.8% to $2.25 billion in Q1 2025, making it the only top-three foundry to achieve revenue growth, with its market share rising from 5.5% to 6%, closing the gap with Samsung to just 1.7 percentage points [5]. Group 3: Future Outlook - TrendForce forecasts a general slowdown in the global foundry market in Q2 2025, mainly due to reduced demand from tariffs. However, specific applications and policy support, such as demand driven by Chinese subsidies and high-performance computing, are expected to sustain capacity utilization among the top foundries [6].

Group 1 - Proactive Investors specializes in providing fast, accessible, and informative business and finance news to a global investment audience, focusing on medium and small-cap markets as well as blue-chip companies [2][3] - The news team covers various sectors including mining, energy, biotech, and emerging technologies, delivering unique insights and updates to engage private investors [3] - Proactive has a strong presence in key financial hubs worldwide, with bureaus and studios located in cities such as London, New York, Toronto, Vancouver, Sydney, and Perth [2][3] Group 2 - The company emphasizes the use of technology to enhance workflows, adopting automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [4][5]