Moving Infrastructure Forward Q2 2025 Update Presentation August 14, 2025 1 SAFE HARBOR STATEMENT This presentation is for informational purposes only and contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are sta ...

Core Views - The report emphasizes that the breakthrough of the 3674-point level in the A-share market is often driven by major weight sectors such as brokerage firms, and the accompanying trading volume is crucial for sustaining this momentum [3][10][11] - Historical data suggests that during a bull market, the market tends to rise gradually, and the current overall valuation level of the A-share market still has room for improvement compared to historical bull market highs, providing support for further index increases [3][10][11] Market Overview - On the day of the report, the A-share market saw a strong performance, with the Shanghai Composite Index breaking the 3674-point high from October 2024, and the ChiNext Index rising over 3%, with total trading volume exceeding 2 trillion yuan [3][6][10] - The report notes that the brokerage sector's strong performance is pivotal in leading the market's upward movement, and the overall market sentiment is active with more stocks rising than falling [5][6][7] Sector Analysis - The brokerage sector is highlighted as a key area for investment, with expectations of continued growth driven by increased trading volume, improved economic fundamentals, and favorable policies [7][9] - The report also points out the rising trend in the optical communication module sector, which is essential for high-speed data transmission in modern communication networks, indicating a potential high prosperity cycle in the second half of 2025 [8] - The semiconductor sector is noted for its ongoing growth, supported by national policies and increasing global demand for AI and high-performance computing, with a recommendation to focus on companies that are technologically advanced and can adapt quickly to industry changes [9][10]

制程布局方面，世芯表示，第2季已有逾八成营收来自7纳米以下先进制程，其中3／2纳米虽占比仅 5%，但未来数季将逐步放量，预计2026年起将明显拉升整体营收占比。沈翔霖强调："随着N3量产开 始、下一世代设计确立，我们预期未来几年将展现强劲且可持续的成长曲线（strong and sustainable outlook）。" 面对日益升高的地缘政治风险，世芯也持续降低中国大陆市场曝险，第2季中国区营收占比已降至个位 数，并积极扩张日本、马来西亚与越南工程团队，预计2025年底东南亚人力将增至120人。此举不仅提 升海外技术支持能量，也为未来大型专案执行与客户信任奠定基础。 沈翔霖表示，尽管今年第3与第4季营收预估与第2季相近，但获利仍维持与去年相当的水准，并强 调："我们对AI市场充满信心，随着N3量产与下一代设计案到位，未来几年将展现强劲且可持续的成 长。" ASIC业者世芯-KY（3661）13日召开第2季法说会，总经理沈翔霖表示，虽然短期营运处于制程与产品 转换期，但公司对中长期展望高度乐观，随着3纳米设计案明年放量、ADAS芯片正式接单、2纳米专案 启动NRE认列，公司已建立扎实的成长基础。他强调："我 ...

Financial Data and Key Metrics Changes - In Q2 2025, the company mined 7.18 Bitcoin with a direct cost of $48,200 per Bitcoin, achieving revenues of $98,000 per Bitcoin [6][37] - Total revenue for the quarter was $78 million, representing an 87% year-over-year increase, with mining activities contributing $71 million [37] - The gross mining profit was $32 million, resulting in a direct mining margin of 45% [37] - The company reported a net loss of $29 million for the quarter, which included $15 million in impairment charges related to operations in Argentina [38] Business Line Data and Key Metrics Changes - The company completed its Bitcoin mining growth plans by installing over 12,000 miners across all facilities [6] - Free cash flow from mining operations is approximately $8 million per month, with Bitcoin holdings increasing to approximately 1,200, up 25% from the end of 2024 [11][26] - The average electricity price improved by 2%, and direct hash costs improved by 5% [8] Market Data and Key Metrics Changes - The company is positioned as a major player in the North American market, particularly in Quebec and Pennsylvania, with significant investments from major tech firms in nearby data centers [12][18] - The Pennsylvania portfolio is expected to benefit from a surge in data center investments, with commitments exceeding $90 billion from companies like Google and Meta [18] Company Strategy and Development Direction - The company is transitioning from Bitcoin mining to focus on high-performance computing (HPC) and AI, leveraging its energy portfolio [6][12] - Plans to convert Canadian Bitcoin mining megawatts to HPC data center megawatts are in progress, pending regulatory approval [15][61] - The company aims to become a US-domiciled entity by 2026, which is expected to enhance its access to US capital markets and improve operational efficiencies [24][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong cash flows from Bitcoin mining while transitioning to HPC and AI [26] - The company anticipates that the market is undervaluing both its Bitcoin business and HPC potential, leading to the initiation of a stock buyback program [26][27] - Management highlighted the importance of the upcoming 2026 power availability for attracting customers to the Panther Creek site [50] Other Important Information - The company has secured a financing agreement with Macquarie for up to $300 million to fund the Panther Creek HPC data center project [28][29] - The company plans to execute a stock buyback program for up to $49.9 million, funded by excess cash flow from mining operations [32][27] Q&A Session Summary Question: What is the game plan for getting construction procurement lined up for Panther Creek? - The company is engaging T5 to manage the development process, including securing permits and overseeing contractors [45] Question: What is the total CapEx for the Panther Creek project? - The total build-out cost is estimated to be around $400 million, with $10.5 million planned for the remainder of 2025 [47] Question: How does the demand for larger data center campuses affect Panther Creek's strategy? - The company is seeing increased demand for larger campuses, but immediate power availability in 2026 is a priority for potential customers [50] Question: What is the expected timeline for the Macquarie credit facility approval process? - The approval process is expected to take a couple of months, with the company having sufficient liquidity to fund current expenditures [67] Question: How is the company planning to manage share buybacks going forward? - The company anticipates continuing share buybacks based on cash flow generation from Bitcoin mining activities [70] Question: What is the expected revenue per megawatt for the Panther Creek site? - The company is not ready to commit to specific revenue figures as it depends on customer conversations and agreements [81]

公众号记得加星标⭐️，第一时间看推送不会错过。 来源：内容来自 经济日报 。 半导体封测龙头日月光投控昨（11）日公告，旗下日月光半导体拟向砷化镓代工大厂稳懋购买位于高 雄市路竹区厂房及附属设施，交易金额65亿元。稳懋同步公告，这项资产处分案可挹注获利19.39亿 元，约当贡献每股税前盈余4.57元，最快今年底前认列。 日月光投控表示，拟从稳懋取得的相关厂房设施位于南部科学园区高雄园区，取得目的为扩充半导体 先进封装产能。 日月光积极布建先进封装产能，旗下日月光半导体K28新厂于2024年10月动土，预计2026年完工， 主要扩充CoWoS先进封测产能；2024年8月，日月光半导体向宏璟建设购入位于高雄楠梓K18厂房， 布局晶圆凸块封装和覆晶封装制程生产线。 法人指出，日月光投控受惠高速运算（HPC）客户需求强劲，先进封装产能接单畅旺，既有厂区已无 法满足后续生产需求，因而买下稳懋路竹厂房及附属设施。 日月光投控先前指出，受惠AI、HPC应用驱动，第3季先进封测业务持续向上，过去投资技术的效益 显现，现在跨入FT、SLT、Burn-in等测试领域，看好今年测试业务的成长率是封装的二倍。 法人预估，日月光投控第 ...

Core Viewpoint - The release of the PCIe 8.0 standard marks a significant milestone in the evolution of PCIe technology, doubling the data transfer rate to 256GT/s and reinforcing its critical role in high-speed data transfer across various computing environments [1][38]. Group 1: Evolution of PCIe Technology - PCIe, introduced by Intel in 2001, has evolved from the original PCI standard, which had a maximum bandwidth of 133 MB/s, to a series of iterations that have consistently doubled the data transfer rates [3][14]. - The transition from PCI to PCIe represents a shift from parallel bus technology to a serial communication mechanism, significantly enhancing data transfer efficiency and reducing signal interference [9][11]. - The PCIe 1.0 standard initiated the serial interconnect revolution with a transfer rate of 2.5GT/s, while subsequent versions have seen substantial increases, culminating in the upcoming PCIe 8.0 [14][38]. Group 2: Key Features of PCIe - PCIe's architecture includes three core features: serial communication, point-to-point connections, and scalable bandwidth capabilities, which collectively enhance performance and reduce latency [9][11]. - The introduction of advanced signal processing techniques, such as CTLE in PCIe 3.0 and PAM4 modulation in PCIe 6.0, has been pivotal in maintaining signal integrity and supporting higher data rates [18][24]. - PCIe 8.0 is set to introduce new connector technologies and optimize latency and error correction mechanisms, ensuring reliability and efficiency in high-bandwidth applications [42][38]. Group 3: Market Applications and Trends - PCIe technology is predominantly utilized in cloud computing, accounting for over 50% of its market share, with increasing adoption in automotive and consumer electronics sectors [46][49]. - The demand for high-speed interconnects is driven by the growth of AI applications, high-performance computing, and data-intensive workloads, positioning PCIe as a foundational technology in these areas [45][51]. - Predictions indicate that the PCIe market in AI applications could reach $2.784 billion by 2030, with a compound annual growth rate of 22% [51]. Group 4: Competitive Landscape and Challenges - PCIe faces competition from proprietary interconnect technologies like NVLink and CXL, which offer higher bandwidth and lower latency for GPU communications [55][63]. - The establishment of the UALink alliance aims to create open standards for GPU networking, challenging the dominance of proprietary solutions and enhancing interoperability [56]. - Despite its established position, PCIe must navigate challenges related to bandwidth limitations and evolving market demands, necessitating continuous innovation and adaptation [64][71].

Summary of Conference Call Notes on Taiwan Semiconductor Industry Industry Overview - **Industry**: Semiconductors - **Key Companies**: TSMC (Taiwan Semiconductor Manufacturing Company), GlobalWafers (GWC) Core Insights and Arguments 1. **US Tariff Announcement**: On August 6, 2025, President Trump announced a proposed 100% tariff on imported semiconductor chips, with exemptions for companies building manufacturing facilities in the US [1] 2. **Impact on TSMC and GWC**: TSMC and GWC are likely to be exempt from the tariff due to their US operations and expansion plans, positioning them favorably for US customers seeking domestic sourcing [2][3] 3. **Investor Sentiment**: The tariff exemption is expected to alleviate investor concerns regarding semiconductor tariff uncertainties, which have been a significant valuation overhang [2] 4. **TSMC's Market Performance**: TSMC's share price has increased by 15%, but it has underperformed compared to other AI-related companies, indicating investor concerns over geopolitical risks [3] 5. **Earnings Visibility**: The tariff exemption is anticipated to enhance TSMC's earnings visibility and reduce downside risks to its growth outlook, as management has already factored potential tariff impacts into their 2025 guidance [3] 6. **Mature Node Capacity**: The proposed tariff exemption may limit downside risks to TSMC's mature node capacity, potentially making its pricing more competitive [4][7] 7. **Vanguard and UMC Implications**: Vanguard may face negative implications due to lack of US exposure, while UMC's collaboration with Intel on a 12nm process lacks clarity on tariff exemption eligibility [8] Company-Specific Developments 1. **TSMC's US Investment**: TSMC plans to invest an additional US$100 billion in advanced semiconductor manufacturing in the US, bringing its total investment to US$165 billion, including multiple fabrication plants and R&D centers [9] 2. **GWC's Expansion**: GWC is expanding its capacity in the US, with significant customer interest in US-based products due to localization trends. Revenue is expected to ramp up gradually from 2H25 to 1H26 [10] Investment Thesis 1. **TSMC**: TSMC is viewed as a leading global foundry with over 60% market share, positioned to capture long-term growth opportunities in AI, 5G, HPC, and EV sectors. The stock is rated as a Buy with a target price of NT$1,370 [12][13][14] 2. **GWC**: GWC is rated Neutral due to slower end-demand recovery and high inventory levels among key customers, with a target price of NT$380 [16][19][18] Risks and Considerations 1. **TSMC Risks**: Key risks include deterioration in end-demand recovery, slower customer node migrations, and increased competition affecting profitability [15] 2. **GWC Risks**: Risks include fluctuations in end-demand recovery, competition, and production costs [20] Additional Insights - The tariff situation is expected to shift the cost dynamics in the semiconductor industry, potentially benefiting companies like TSMC that can offer competitive pricing while ensuring supply chain security [7]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $642 million, up 2% sequentially and at the midpoint of prior guidance [10] - Non-GAAP EPS was $0.55, also at the midpoint of prior guidance [10] - Non-GAAP gross margin was 10.2%, up 10 basis points sequentially and flat year over year [10] - Non-GAAP operating margin was 4.7%, up 10 basis points sequentially [10] - Cash balance decreased by $90 million from Q1 to $265 million, with a free cash outflow of $15 million during the quarter [13][15] Business Line Data and Key Metrics Changes - Semi cap revenue decreased 2% quarter over quarter but grew 11% year over year [11] - Industrial revenue was up 4% quarter over quarter and flat year over year [11] - A&D revenue increased 4% quarter over quarter and 16% year over year [11] - Medical revenue was up 6% quarter over quarter but down low single digits year over year [11] - AC and C revenue was flat quarter over quarter and down considerably year over year [11] Market Data and Key Metrics Changes - The semi cap sector is experiencing a slower recovery due to trade restrictions and tariff uncertainties, but is expected to outperform overall market growth [19] - The industrial sector showed mid single-digit sequential growth, with improvements in test and measurement and controls [20] - A&D sector is expected to maintain strong double-digit growth, driven by stable commercial air and strong defense demand [21] - Medical sector is anticipated to see sustained growth through the second half of the year, overcoming previous inventory challenges [21] Company Strategy and Development Direction - The company is focused on maintaining a customer-first approach and leveraging vertical integration to differentiate in the market [26] - Continued investments in semi cap and A&D sectors are expected to drive long-term growth [19][21] - The company successfully refinanced its debt, extending maturity to June 2030, and repatriated significant cash from overseas [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in 2025, supported by strong bookings and a recovering market [26] - The company is managing spending prudently to protect profitability and free cash flow while supporting dividends and share repurchases [26] - There is confidence in the long-term growth potential of the semi cap industry, with expectations of a $1 trillion market by 2030 [19] Other Important Information - The company repatriated $152 million of cash from China and Thailand, using $95 million to pay down debt [14] - The cash conversion cycle improved to 85 days, with inventory days down six days sequentially [15] Q&A Session Summary Question: Can you provide more perspective on the recovery in AC and C? - Management highlighted their experience in liquid cooling and the complexity of high-performance computing systems, expecting growth to ramp in Q4 and into 2026 [31][36] Question: How much of the semi cap market challenges are due to political factors? - Management indicated that both capital spending adjustments and government restrictions are impacting recovery, but they remain optimistic about long-term growth [37][38] Question: Can you break down the sequential growth in the medical segment? - Most growth is attributed to the base business recovering from inventory challenges, with significant new bookings contributing as well [46][72] Question: What are the expectations for the aerospace and defense sector? - Management noted stabilization in commercial air travel and solid demand across various parts of the industry, with less exposure to Boeing [66] Question: How do you expect to achieve inventory improvements? - Focus on operational discipline and better systems to optimize inventory days, targeting inventory turns of 5 to 5.5 [60][62]

Core Viewpoint - TSMC reported record profits in Q2, driven by strong demand for AI chips, with a projected revenue growth of nearly 30% for the year despite potential tariff impacts [2][3][11]. Financial Performance - TSMC's Q2 revenue reached NT$933.79 billion, a year-on-year increase of 38.6%, with net income of NT$398.27 billion, up 60.7% [2][4]. - Earnings per share (EPS) for Q2 was NT$15.36, reflecting a 60.7% increase compared to the previous year [5][11]. - The gross margin stood at 58.6%, with an operating margin of 49.6%, indicating strong operational efficiency [5]. Market Outlook - TSMC's chairman, C.C. Wei, indicated that AI chip demand remains robust, with non-AI applications also expected to recover moderately [3][11]. - The company has revised its full-year revenue growth forecast from 24-26% to nearly 30%, outperforming market expectations [12][22]. - Despite potential tariff uncertainties, TSMC's overall outlook remains positive, with no significant changes in customer behavior observed [3][4]. Capital Expenditure and Dividends - TSMC plans to maintain its capital expenditure forecast at US$38-42 billion for the year, ensuring sustainable dividend policies [4][13]. - The company anticipates a total cash dividend of at least NT$18 per share this year, increasing to at least NT$20 next year [4]. Advanced Technology and Production Capacity - TSMC is set to begin mass production of its 2nm process technology in the second half of the year, which is expected to provide significant revenue contributions [15][17]. - The company is expanding its manufacturing capabilities in Arizona, with plans for six wafer fabs and two advanced packaging facilities to support AI and HPC applications [18][19]. Industry Context - Analysts view TSMC's strong performance as a positive signal for the semiconductor market, particularly amid tariff and policy challenges [21][22]. - Concerns remain regarding potential impacts from tariffs and the performance of major clients like Apple, which could affect TSMC's outlook for the latter half of the year [22][23].

Core Insights - Super Micro Computer, Inc. (SMCI) has announced the certification of its BigTwin Server for immersion cooling, utilizing 4th and 5th Gen Intel Xeon Scalable Processors, enhancing performance and efficiency in data centers [1][6] Group 1: Certification and Collaboration - The Supermicro BigTwin server has undergone rigorous testing and is now recognized as a certified immersion server, ensuring compatibility with Intel's guidelines and the Open Compute Project (OCP) specifications [1][4] - Supermicro's long-standing collaboration with Intel combines advanced processor technologies with high-performance solutions, ensuring that the BigTwin server remains fully functional when immersed in specified liquids [2][4] Group 2: Efficiency and Environmental Impact - Immersion cooling technology significantly lowers Power Usage Effectiveness (PUE), with data centers using Supermicro immersion servers achieving PUE values close to 1.05 or lower, thus reducing energy costs and environmental impact [3][8] - The immersion cooling method allows for denser compute configurations without increasing thermal load, improving overall energy efficiency and reducing the need for traditional air-based cooling systems [3][5] Group 3: Industry Standards and Future Outlook - Supermicro's involvement in the OCP Community has been crucial in advancing immersion cooling standards, promoting compatibility, efficiency, and scalability across data center deployments [4][5] - The growing demand for immersion-certified servers is driven by the need for efficient cooling solutions in data centers, particularly for AI and HPC applications, which require powerful processors [8]