Investment Rating - The report maintains an investment rating of "Recommended" for the industry [1] Core Insights - Demand for AI hardware remains strong, while consumer electronics are experiencing a cooling trend [1][5] - The semiconductor sector is seeing cautious ordering behavior from customers in consumer products [15][20] - The PCB manufacturing sector is benefiting from increased demand for ASIC AI servers [22][24] - Optical components are experiencing a boost due to new iPhone launches [25] - The storage sector may face structural shortages in DDR4 and LPDDR4 in the second half of 2025, leading to rising contract prices [26][27] Summary by Sections Semiconductor - IC design companies in Taiwan are showing signs of revenue fatigue, with MediaTek's July revenue at 432 billion NTD, down 23.4% month-over-month and 5.2% year-over-year [15][16] - TSMC's July revenue reached 3,232 billion NTD, up 22.5% month-over-month and 25.8% year-over-year, with a 37.6% increase in cumulative revenue for the first seven months [16][17] PC/Server - July revenues for PC manufacturers declined after a peak in Q2, with Hon Hai's revenue at 6,139 billion NTD, up 13.6% year-over-year [20][21] - AI server demand is expected to grow significantly, with Hon Hai projecting a 170% year-over-year increase in related revenue [21] PCB - Overall revenue for PCB manufacturers in Taiwan increased by 6.6% month-over-month and 9.3% year-over-year in July [22] - Companies like Zhen Ding are seeing a significant portion of their revenue coming from AI applications, with expectations to exceed 70% in 2025 [24] Optical Components - Largan Precision's July revenue was 54 billion NTD, up 30.6% month-over-month, driven by new product launches [25] Storage - Most storage supply chain companies in Taiwan reported varying degrees of year-over-year revenue growth in July, with a potential structural shortage in DDR4 expected in the second half of 2025 [26][27]