Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **US Semiconductor Equipment** industry, specifically the capital expenditure (capex) updates of the **Big Three**: **TSMC**, **Samsung**, and **Intel**. [1] Core Insights and Arguments - The **Big Three** account for approximately **59%** of the projected **$115 billion** global **2026 Wafer Fabrication Equipment (WFE)** spending, which is expected to grow by **10% year-over-year**. The breakdown includes **30%** growth in **NAND**, **12%** in **DRAM**, and **6%** in **Foundry/Logic (F/L)**. [1] - The equipment sector is believed to be in **Phase 2 of an upcycle**, with expectations that **2026 WFE** spending could reach **$126 billion** under a bullish scenario. [1] - **TSMC** is anticipated to guide its **2026 capex** between **$46 billion** and **$48 billion**, with potential increases throughout the year, based on investor discussions suggesting a target of **$50 billion**. [1][2] - **Intel** is projected to maintain a **2025 gross capex** of **$18 billion**, with expectations for **2026** to be around **$16 billion**. Intel's capex is expected to stabilize as foundry operations improve, particularly for back-end customers. [1][3] - **Samsung** has indicated flexibility in its **2026 capex**, planning to increase investments in response to growing **AI** demand. In a related note, **Micron** has raised its **FY2026** net capex to **$20 billion**, reflecting a **45% year-over-year** growth. [1][4] Additional Important Information - The top-rated equipment picks for investment are **Lam Research Corp (LRCX)** and **Applied Materials Inc (AMAT)**. [1] - The earnings reports for the companies are scheduled as follows: **TSMC** on **January 15**, **Intel** on **January 22**, and **Samsung** on **January 29**. [2][3][4] - The report includes a disclaimer regarding potential conflicts of interest due to Citigroup's involvement with the companies mentioned, emphasizing that investors should consider this report as one of many factors in their investment decisions. [5][10][11]