Core Viewpoint - The article discusses the potential renegotiation of semiconductor funding initiated under the Biden administration, with implications for companies like TSMC and the overall semiconductor industry in the U.S. [1][3] Group 1: Renegotiation of Funding - U.S. Commerce Secretary Howard Lutnick indicated that the Trump administration is renegotiating some of the funding provided to semiconductor companies under the CHIPS and Science Act, suggesting that some awards may be canceled [1] - Lutnick mentioned that TSMC is an example of successful renegotiation, having increased its initial $65 billion investment plan in U.S. manufacturing by an additional $100 billion [2] - The Biden administration had allocated $52.7 billion to promote semiconductor manufacturing and research, with funds expected to be disbursed as companies meet construction and production milestones [1][4] Group 2: Legislative and Industry Reactions - Despite Trump's call to repeal the $38.2 billion funding plan under the CHIPS Act, semiconductor experts remain cautiously optimistic about the plan's continuation [3] - The likelihood of repealing the CHIPS Act is considered low due to bipartisan support and the benefits it brings to various regions, including Arizona [4] - Companies are exploring all possible avenues to halt the funding, with the potential for unallocated funds to be redirected to other projects if the law is repealed [5] Group 3: Future Implications and Industry Sentiment - The article highlights that any attempts to change the funding under the CHIPS Act are expected to face legal challenges, and the overall sentiment in the industry remains optimistic despite uncertainties [6] - The Commerce Department is likely to continue executing the chip program, indicating a commitment to the original mission despite potential changes in management or policy focus [6]

Key Points - TSMC faces accusations of being a sweatshop, with claims of labor injuries and long working hours, which the chairman Wei Zhejia refutes by emphasizing employee satisfaction and commitment [4] - Baidu's BioMap plans to go public in Hong Kong within the next 18 months, focusing on AI in life sciences and has secured over $200 million in venture capital [10] - NIO's CEO Li Bin states the company opposes price wars and believes the industry's shift away from internal competition is beneficial for NIO's path to profitability [8] - Xiaomi's CEO Lei Jun comments on Apple's struggles in the automotive sector, attributing their challenges to unknown factors while highlighting Xiaomi's strategic approach to car manufacturing [7] - BYD is actively combating black PR and has placed 126 accounts on a watchlist for malicious activities, emphasizing their commitment to protecting the company's reputation [12] - Volkswagen announces a restructuring plan in Germany, with around 20,000 employees agreeing to voluntary departures by 2030 due to rising manufacturing costs and reduced demand [29] - TikTok shifts its advertising strategy in the U.S. by discontinuing free traffic for businesses, requiring them to pay for ad placements to reach audiences [32] - Mercedes-Benz acknowledges the poor sales performance of its electric G-Class model, leading to considerations of reintroducing traditional fuel options [30][31]

Group 1 - The article argues that the idea of re-industrialization in the U.S. is unrealistic due to high costs and challenges in the American market, as highlighted by TSMC's chairman, who stated that "the U.S. is expensive and not good to eat" [1] - It emphasizes that a successful industry requires a complete ecosystem, including government efficiency, infrastructure, supply chain, and talent support, which the U.S. currently lacks [1][2] - The article claims that the U.S. manufacturing sector is not strong enough to support a return to industrialization, as it lacks a continuous economic policy and suffers from bureaucratic inefficiencies at the local government level [3][4] Group 2 - The article points out that the U.S. does not have the necessary infrastructure to support manufacturing, as even minor disruptions can halt production for extended periods [3][4] - It highlights the shortage of trained manufacturing talent in the U.S., suggesting that the focus on academic research over practical skills has led to a decline in manufacturing capabilities [4] - The article warns that TSMC's investment in U.S. manufacturing may not yield returns due to the competitive pressure from mainland China's chip industry and the inefficiencies in the U.S. market [4]

Core Viewpoint - TSMC is projected to achieve "record profit" in 2025, with CEO C.C. Wei expressing confidence in the company's growth despite potential tariff impacts [1][3]. Group 1: Company Growth and Market Demand - TSMC anticipates continued sales growth in the mid-20% range, driven by high demand for artificial intelligence applications and emerging markets such as humanoid robots [4]. - The company believes that even if U.S. demand for semiconductors decreases due to tariffs, alternative buyers will sustain overall demand [3]. Group 2: Financial Performance and Stock Valuation - TSMC reported a profit of $39.4 billion over the past year, but its free cash flow (FCF) was only $27.3 billion, indicating a cash profit of approximately $0.69 for each $1 in claimed profit [5][6]. - The company's price-to-earnings (P/E) ratio is 24, which appears attractive compared to its growth rate, but the price-to-free-cash-flow ratio exceeds 31, suggesting that TSMC stock may still be considered expensive [5][6].

Core Insights - China's technology sector is expected to show resilience in H2 2025, leveraging global trade pressures to foster indigenous innovation despite facing significant U.S. tariffs and export restrictions [2] - Major Chinese tech companies are pivoting investments towards AI infrastructure and emerging technologies, with strong demand for AI outpacing supply [2] - The semiconductor industry in China has captured over 25% of the global market share in advanced packaging technologies, showcasing its competitive edge [5] Company Highlights - **NetEase**: - Demonstrated strong financial momentum with Q1 2025 gaming revenues increasing by 12.1% year over year to RMB24.0 billion and net income rising by 35% to RMB10.3 billion [9][11] - Upcoming game titles and a robust pipeline position the company for growth in the second half of 2025 [10][11] - **Alibaba**: - Reported Q4 fiscal 2025 non-GAAP earnings surged by 23% year over year to $1.73 per ADS, exceeding estimates by 16.89% [12][13] - The Cloud Intelligence segment achieved 18% revenue growth, with AI-related products maintaining triple-digit growth for seven consecutive quarters [12] - **Taiwan Semiconductor**: - Achieved Q1 2025 revenues of $25.53 billion, a 35% year-over-year increase, with net income rising by 53% to nearly $11 billion [15] - Plans to increase capital spending to between $38 and $42 billion in 2025 to meet growing AI-driven demand for advanced chips [16] - **Tencent**: - Reported Q1 revenues of RMB180 billion, a 13% year-over-year increase, with gaming division growth accelerating [17] - Integrated AI capabilities are enhancing user engagement and advertising effectiveness, positioning the company favorably in the market [18][19] Industry Trends - The robotics sector in China is advancing with innovations such as sophisticated humanoid robots, while the electric vehicle ecosystem is bolstered by companies like Zeekr and Great Wall Motor [6] - Augmented reality companies in Beijing are developing advanced AR solutions, reflecting China's strategy to lead in high-tech sectors [7] - The overall technological advancements and significant investments in development present substantial growth opportunities for investors in the Chinese tech landscape [8]

Core Insights - Invictus Origin is a high-alpha investment management firm founded by Oliver Rodzianko in May 2025, aiming to become a globally recognized actively managed fund [1] - The firm's flagship product, the Nasdaq High-Alpha Black Swan Portfolio, is designed to sustainably outperform the Nasdaq-100 while maintaining approximately 20% in strategic cash reserves for downside protection [1] - Oliver Rodzianko has extensive experience as a macro-focused investment analyst, emphasizing fundamental valuation and sector expertise in technology, semiconductors, artificial intelligence, and energy [1] Company Strategy - Invictus Origin is developing innovative portfolio strategies to capture asymmetric upside by navigating market dislocations and intrinsic value cycles [1] - The firm aims to establish resilience and performance through disciplined capital stewardship, supported by a complementary family office structure focused on lower-volatility capital preservation [1] Market Position - Oliver Rodzianko has built a strong reputation as an investment analyst, providing actionable insights to sophisticated investors and industry-leading public figures [1] - The investment process integrates U.S. market specialization with comprehensive international market awareness, positioning Invictus Origin for durable outperformance [1]

Group 1 - Samsung Electronics has hired Margaret Han, a former TSMC executive with 21 years of experience, to lead its North American foundry business, indicating a strategic push to enhance its competitiveness in global foundry orders [2] - The company is constructing a $17 billion semiconductor foundry in Taylor, Texas, aiming to secure orders from major tech companies such as NVIDIA, AMD, Tesla, and Amazon [2] - The appointment of a professional familiar with the North American market is crucial for Samsung to rebuild customer trust and close the gap with TSMC [2]

Core Viewpoint - Intel is strategically targeting the South Korean market for its foundry services, particularly aiming to compete with Samsung's wafer foundry business by hosting the Direct Connect Asia event in Seoul [1][2]. Group 1: Event and Strategic Intent - Intel's foundry division will hold the Direct Connect Asia event in Seoul on June 24, marking the first time this event is held outside the U.S. [1] - The event aims to engage with local IC design companies in South Korea that require low-cost advanced process foundry services, indicating Intel's intent to capture market share from Samsung [1][2]. Group 2: Technology and Competitive Landscape - Intel has high hopes for its Intel 18A process technology, which utilizes advanced RibbonFET and PowerVia technologies, and plans to begin mass production in the second half of 2025 [1][2]. - Intel 18A is positioned to compete directly with TSMC's 2nm process technology, showcasing its potential in the foundry market [2]. - Samsung's advanced process technology has lagged behind TSMC, with reports indicating only a 50% yield for its 3nm process and a current 40% yield for its 2nm process, which may hinder its ability to attract large clients [2].

Group 1 - TSMC's 2nm process yield for memory products has surpassed 90%, indicating significant manufacturing efficiency [1] - TSMC is targeting orders from major US tech companies such as Nvidia, Apple, Qualcomm, AMD, and Broadcom, with expectations of reaching full capacity utilization soon [1] - The Arizona facility is currently producing N4 chips, corresponding to 5nm and 4nm technologies, with Nvidia's AI chips undergoing process validation and expected to start production by the end of this year [1] Group 2 - TSMC's 2nm wafer production is projected to reach four times the volume of the previous year's 5nm production, reflecting strong demand [2] - Major clients like Apple, MediaTek, Qualcomm, and AMD are planning to utilize TSMC's 2nm process for their next-generation chips, which is expected to drive revenue growth [2] - Analysts predict TSMC's revenue growth of 26.3% and 14.1% for 2025 and 2026, respectively, with advanced process nodes below 7nm increasing from 68.8% in 2024 to 79.3% in 2026 [2] Group 3 - In advanced packaging, TSMC's CoWoS shipments are expected to increase from 585,000 units in 2026 to 923,000 units, with capacity rising from 660,000 to 1,000,000 units, representing year-on-year growth of 52% and 58% [3] - Despite currency fluctuations affecting profit expectations for 2025-2027, TSMC's revenue is still anticipated to grow by approximately 25% in 2025 [3]

Group 1: Stock Movements in Hong Kong Market - Youqu Holdings (02177) surged over 24% as it actively expands into the health sector with the launch of the Canadian anti-aging health food brand Vanpearl containing ergothioneine [1] - Longfly Fiber Optics (06869) rose nearly 10% following the commencement of mass production at its advanced Wuhan base, successfully producing its first 6-inch silicon carbide wafer [1] - SF Holding (06936) increased over 5% with a reported 19.1% year-on-year growth in express delivery volume in April 2025, reaching 16.32 billion parcels [1] Group 2: Notable Developments in Other Companies - Alibaba Pictures (01060) gained over 4% after announcing a name change to Damai Entertainment, indicating a focus on offline performances and IP derivatives [2] - Innovent Biologics (01801) rose over 4% after presenting promising results for its innovative drug IBI343 for treating advanced pancreatic cancer at the 2025 ASCO annual meeting [2] - Ideal Auto (02015) saw a rise of over 6% with May deliveries reaching 40,856 units, marking a 16.7% year-on-year increase [4] Group 3: U.S. Market Highlights - Ferguson (FERG.US) increased by 2.9% with Q3 sales of $7.621 billion, a 4.3% year-on-year growth, exceeding market expectations [5] - Credo Technology (CRDO.US) surged over 14% with Q4 revenue of $170.3 million, a 179.7% year-on-year increase [6] - Nvidia (NVDA.US) rose by 2.8% as UBS projected significant revenue from a new AI data center project in Texas [6]