Group 1 - TSMC's 2nm (N2) advanced process technology is expected to reach an initial production capacity of approximately 35,000 wafers per month, with a forecasted increase to 140,000 wafers per month by the end of this year, surpassing previous market estimates of 100,000 wafers per month [1] - The N2 process is anticipated to start contributing to TSMC's revenue from the second half of this year, driven by strong demand and high pricing, potentially making it the "most popular generation" of process technology, surpassing the previous 5nm and 3nm technologies [1] - JPMorgan's report indicates that the number of tape-outs for TSMC's 2nm process is expected to be 1.5 times that of the 3nm process during the same period, with TSMC poised to capture over 95% of the global AI accelerator market share with the 2nm technology [1] Group 2 - TSMC's consolidated revenue for December 2025 is approximately NT$335.003 billion (equivalent to about RMB 74.371 billion), reflecting a decrease of 2.5% month-over-month but an increase of 20.4% year-over-year [2] - Cumulative revenue for TSMC from January to December 2025 is approximately NT$38,090.54 billion (equivalent to about RMB 845.61 billion), representing a year-over-year increase of 31.6% [2]

Core Viewpoint - Nvidia is set to resume sales of its H20 GPU in China and has announced a new fully compatible GPU, the NVIDIA RTX PRO, aimed at digital twin AI for smart factories and logistics [1][2]. Group 1: Nvidia's Product Developments - Nvidia has submitted an application to the US government to resume sales of the H20 GPU, which is designed specifically for the Chinese market and complies with US export restrictions [1]. - The H20 GPU is based on Nvidia's Hopper architecture and utilizes advanced CoWoS packaging technology [1]. - The newly announced NVIDIA RTX PRO GPU is positioned as an ideal choice for creating digital twin AI solutions in smart factories and logistics [1]. Group 2: Government Relations and Events - The US government has assured Nvidia that it will grant the necessary licenses for the resumption of H20 GPU sales [1]. - Nvidia's CEO Jensen Huang is confirmed to attend the opening ceremony of the third China International Supply Chain Promotion Expo on July 16 [2].

Investment Rating - The report assigns a positive outlook for MediaTek, indicating a potential for growth in the upcoming quarters, particularly in the AI and mobile sectors [2][3]. Core Insights - MediaTek's Q1 2025 revenue reached NT$153.3 billion, showing a quarter-over-quarter increase of 11.1% and a year-over-year increase of 14.9%. Operating profit was NT$30.1 billion, with a net profit of NT$29.5 billion [2][7]. - The demand recovery in mainstream and entry-level markets has driven growth in the mobile business, with expectations for further market share and average selling price (ASP) increases with the upcoming flagship SoC launch [2][14]. - MediaTek is collaborating with NVIDIA to target the AI ASIC market, projecting AI ASIC revenue to reach $1 billion by 2026 [3][28]. Summary by Sections Overall Performance - In Q1 2025, MediaTek achieved a revenue of NT$153.3 billion, with operating profit at NT$30.1 billion and net profit at NT$29.5 billion. The gross margin was 48.1%, reflecting a slight decline from the previous quarter and year [7][14]. Business Segmentation - **Mobile Business**: Contributed 56% to total revenue, with a 6% increase year-over-year and quarter-over-quarter, driven by demand recovery in mainstream and entry-level markets [14]. - **Intelligent Edge Platform**: Accounted for 39% of total revenue, showing a 32% year-over-year and 23% quarter-over-quarter increase, benefiting from upgrades in connectivity technology and AI applications [15]. - **Power IC Business**: Made up 5% of total revenue, with a 7% year-over-year increase but a 9% quarter-over-quarter decline [16]. Performance Guidance - For Q2 2025, MediaTek expects revenue to be between NT$147.2 billion and NT$159.4 billion, with a projected gross margin of 47% (±1.5 percentage points) [17][18].