The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Nexchip Semiconductor Corporation* 合肥晶合集成電路股份有限公司 (A joint stock company incorporated in the People's Republic of C ...

TSMC (2330.TW) Conference Call Summary Company Overview - TSMC is the leader in the dedicated IC foundry segment, known for advanced wafer production processes and manufacturing efficiency [49][50]. Key Industry Insights - The AI megacycle is driving strong demand across various segments, including GPUs, ASICs, server CPUs, and networking chips, leading to an expected over 100% YoY growth in AI-related revenue for TSMC [1][22]. - TSMC's capacity expansion is heavily influenced by AI demand, with projections for significant increases in N3/N2 capacity by 30-40% and 100%+ YoY, respectively, in 2027 [2][9]. Financial Projections - TSMC's revenue is projected to grow by 30% YoY in 2026, with capex estimates increasing to US$67 billion in 2027 and US$75 billion or higher in 2028 [2][9]. - Earnings projections for 2026 and 2027 have been revised upwards by 3% and 11%, respectively, with expected earnings growth rates of 41% in 2026, 39% in 2027, and 27% in 2028 [32][35]. Earnings Summary - **2024A**: Net Profit: NT$1,173,268 million, EPS: NT$45.24, P/E: 40.2 - **2025A**: Net Profit: NT$1,717,883 million, EPS: NT$66.24, P/E: 27.5 - **2026E**: Net Profit: NT$2,430,756 million, EPS: NT$93.73, P/E: 19.4 - **2027E**: Net Profit: NT$3,390,062 million, EPS: NT$130.72, P/E: 13.9 - **2028E**: Net Profit: NT$4,304,550 million, EPS: NT$165.99, P/E: 11.0 [5][36]. Advanced Technology Developments - TSMC is transitioning to System on Integrated Chip (SoIC) technology, enhancing its role from a wafer manufacturer to a chip-level system integrator, which is crucial for AI performance [4][23]. - The N2 node is expected to become the largest revenue contributor for TSMC, with significant demand visibility for at least the next three years [3][19]. Market Position and Strategy - TSMC maintains a strong market position due to its technology leadership, advanced packaging capabilities, and long-term customer trust, making it less vulnerable to economic downturns [35][51]. - The company is expected to achieve a sales CAGR of over 30% in the next three years, driven by AI demand and stable growth in other sectors [50][44]. Risks and Concerns - Potential risks include weakness in the global semiconductor market, margin contractions due to rising costs, and competition entering the foundry business [52]. - Near-term concerns regarding gas and utility shortages due to geopolitical tensions are noted, but TSMC's operations are expected to remain stable [31]. Investment Recommendation - TSMC shares are rated as a Buy, with a target price of NT$2,800, reflecting a favorable valuation compared to global peers [51][35].

Smartphone Industry - Global smartphone production is projected to reach 1.25 billion units by 2025, with Apple and Samsung both expected to produce approximately 240 million units each, ranking them first globally [2][3] - In Q4 2025, global smartphone production is estimated at 337 million units, reflecting a quarter-over-quarter increase of 2.7% [2] Laptop Market - The global laptop market is facing dual pressures of weak demand and rising costs, with memory and CPU prices increasing significantly [2] - It is estimated that the retail price of mainstream laptops, originally priced at $900, may rise by nearly 40% to maintain existing profit margins [2] Semiconductor Industry - The global revenue of the top ten foundries is expected to increase by 2.6% in Q4 2025, reaching approximately $46.3 billion, driven by demand from AI server GPUs and smartphone chip production [6][7] - TSMC remains the market leader with a revenue of $33.7 billion in Q4 2025, holding a market share of 70.4% [7] SSD Market - The revenue of the top five enterprise SSD manufacturers is projected to increase by 51.7% in Q4 2025, surpassing $9.9 billion, due to the growing demand for AI inference applications and server upgrades [11][12] - Samsung leads the enterprise SSD market with a revenue of $3.66 billion, accounting for 33.8% market share [12] Display Panel Industry - The panel industry is undergoing a shift towards higher generation production lines, with the 8.6 generation expected to account for 26% of global LCD capacity by 2026 [14]

Group 1 - The company Tower Semiconductor is recognized as a representative enterprise in high-value analog semiconductor foundry solutions, providing technology, development, and process platforms to support the growth of the analog ecosystem with innovative technology solutions [3] - Tower Semiconductor's technology capabilities include SiGe BiCMOS and RF CMOS (SOI and bulk processes) for RF and HPA applications, CMOS image sensors (CIS), power management (including 700V BCD process), standard CMOS, mixed-signal CMOS, and MEMS [3] - The company has over thirty years of experience in providing excellent analog technology and process solutions for various emerging markets, including communications, automotive electronics, consumer electronics, medical devices, and industrial applications [3] Group 2 - The company's Israeli facility is designated as an essential operation and is fully operational in accordance with government directives amid the current security situation [1] - All necessary precautions have been implemented to ensure the safety and security of employees while maintaining operational continuity and fulfilling commitments to customers [1] - The company will provide updates should there be any changes in the operational situation or security conditions [1]

Core Viewpoint - SkyWater Technology has appointed Christine Dunbar as senior vice president of sales and solutions engineering to enhance customer acquisition and growth across its core platforms [1] Company Developments - Christine Dunbar will report directly to President and COO John Sakamoto in her new role [1] - The appointment comes as SkyWater aims to build on its commercial momentum in the semiconductor foundry market [1]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $2,489 million, up 4.5% sequentially; gross margin was 19.2%, down 2.8 percentage points sequentially; profit from operations was $299 million; EBITDA was $1,405 million with an EBITDA margin of 56.5%; profit attributable to the company was $173 million [7] - For the full year 2025, revenue was $9,327 million, up 16.2% year over year; gross margin was 21%, up 3 percentage points year over year; profit from operations was $1,110 million; EBITDA was $5,256 million with an EBITDA margin of 56.4%; profit attributable to the company was $685 million; capital expenditures were $8.1 billion [8] Business Line Data and Key Metrics Changes - In Q4 2025, wafer revenue increased by 1.5% sequentially, while other revenue surged by 64% sequentially, mainly due to bulk shipments of MAX [16] - The overall 12-inch wafer utilization rate was nearly fully loaded, while the 8-inch utilization rate exceeded 100% [16] - For 2025, wafer revenue from 12-inch and 8-inch accounted for 77% and 23% respectively, with both segments increasing by 17% and 18% year over year [18] Market Data and Key Metrics Changes - Revenue from Chinese customers increased by 18% year over year, while revenue from overseas customers rose by 9% year over year [18] - By application, wafer revenue percentages were 23% for smartphones, 15% for computers and tablets, 43% for consumer electronics, 8% for connectivity and IoT, and 11% for industrial and automotive [19] - Absolute wafer revenue from industrial and automotive increased by more than 60% year over year, while consumer electronics revenue grew by more than 30% year over year [19] Company Strategy and Development Direction - The company aims to leverage technological reserves and advantages in segmented markets such as BCD, analog, memory, MCU, and mid to high-end display drivers to drive revenue growth [23] - The company plans to maintain high levels of investment to seize local manufacturing opportunities, which has driven rapid revenue growth but also increased depreciation pressure on gross margins [27] - The company is focused on optimizing internal operations to maintain high utilization and improve cost efficiency [27] Management's Comments on Operating Environment and Future Outlook - The management noted that the semiconductor industry is shifting towards localization, with domestic fabless companies gaining market share [17] - For Q1 2026, revenue is expected to be flat sequentially, with gross margin projected to be in the range of 18% to 20% [11] - The company anticipates that revenue growth in 2026 will be higher than the industry average, with capital expenditures expected to remain roughly flat compared to 2025 [24] Other Important Information - The company had total assets of $52.3 billion at the end of 2025, with total cash on hand of $11.9 billion and total liabilities of $17.3 billion [9] - The net cash generated from operating activities in 2025 was $3,194 million, while net cash used in investing activities was $6,495 million [10] Q&A Session Summary Question: Insights on AI and supply chain challenges - Management discussed the impact of AI on memory chip demand and the resulting supply constraints affecting mid to low-end markets [31] Question: Capital expenditure plans for 2026 - Management confirmed that capital expenditures for 2026 are expected to be around $8 billion, with a focus on maintaining high capacity utilization [33]

Core Insights - Tower Semiconductor (TSEM) has formed a strategic collaboration with NVIDIA Corporation (NVDA) to enhance AI data center infrastructure through next-generation silicon photonics [1][2] - The partnership aims to scale AI infrastructure with 1.6T data center optical modules optimized for NVIDIA's networking protocols, potentially doubling data rates and addressing high-speed interconnectivity bottlenecks in AI computing [2] Company Overview - Tower Semiconductor specializes in high-value analog and mixed-signal integrated circuit technologies, including silicon photonics, RF CMOS, SiGe, CMOS image sensors, and power management solutions [3] - The company is headquartered in Migdal HaEmek, Israel, and serves diverse end markets such as automotive, industrial, AI infrastructure, and communications [3] - Tower Semiconductor has a market capitalization of approximately $15.4 billion [3] Stock Performance - Over the past year, TSEM has achieved a remarkable stock performance with a return of 179.7% over the last 52 weeks [4] - The stock recently reached a new 52-week high of around $142.68 on February 3, indicating strong investor interest in the company's role in next-generation semiconductor technologies [5] - Following the announcement of the partnership with NVIDIA, TSEM experienced a significant price movement with a 6.4% intraday gain on February 5, and the stock is up 18.4% year-to-date (YTD) [6]

Core Viewpoint - DB HiTek projects a consolidated sales estimate of 1.3972 trillion KRW for 2025, with an operating profit of 277.3 billion KRW, reflecting a year-on-year sales growth of 24% and an operating profit growth of 45%, achieving an operating profit margin of 20% [1] Group 1: Company Performance - The demand for power semiconductors has increased due to the proliferation of artificial intelligence, alongside positive sales growth in the industrial and automotive markets [1] - DB HiTek's wafer foundry capacity utilization rate was approximately 96% last year and is expected to reach 98% this year [2] - The average selling price is anticipated to increase by 1-2 percentage points year-on-year due to the expansion of high-value-added product lines [2] Group 2: Strategic Initiatives - DB HiTek aims to maintain its technological leadership through advancements and differentiation in the power semiconductor sector, while also focusing on the development and mass production of next-generation power semiconductors and expanding overseas operations for sustainable growth [1] - The company is set to hold a corporate briefing from February 5 to 6 to disclose its operational performance for the fourth quarter of 2025 to domestic institutional investors [2] Group 3: Market Position - As Korea's first specialized system semiconductor wafer foundry, DB HiTek ranks second in profitability within the global wafer foundry industry [1] - The company serves over 400 clients across the United States, Europe, mainland China, Taiwan, and Japan, focusing on its core product—power semiconductors—and continuously expanding its business into sectors such as AI data centers, robotics, and automotive applications [1]

Group 1 - Samsung Electronics' wafer foundry center is considering a price increase of approximately 10% for 4nm and 8nm processes due to rising costs and competitive positioning [1] - TSMC has been continuously raising its process prices, with potential increases of up to 20% attributed to the rapid growth in AI demand and rising costs of labor, materials, and energy [1] - The global advanced process capacity for 7nm and below is expected to grow from approximately 850,000 wafers per month in 2024 to 1.4 million wafers per month by 2028, according to SEMI [1] Group 2 - Domestic semiconductor companies are accelerating their expansion and technological catch-up in the wafer foundry sector, driven by the explosion of domestic computing infrastructure and the "China for China" strategy [2] - The importance of domestic wafer foundry capabilities is increasing as the verification of domestic equipment speeds up and the marginal impacts of overseas controls diminish [2] Group 3 - Jingce Electronics has received repeat orders for electron beam equipment in advanced processes and has completed the delivery and acceptance of 7nm advanced processes [3] - Hua Hong Semiconductor is recognized as a leading domestic wafer foundry with a comprehensive layout in specialty process nodes, offering 8-inch wafer foundry services from 0.35um to 90nm and 12-inch services from 90nm to 40nm [3]

Summary of IonQ and SkyWater Technology Conference Call Company and Industry Overview - **Companies Involved**: IonQ (NYSE: IONQ) and SkyWater Technology - **Industry**: Quantum Computing and Semiconductor Manufacturing Key Points and Arguments Transaction Overview - IonQ announced a transformational acquisition of SkyWater Technology valued at **$1.8 billion**, consisting of cash and stock [5][2] - The acquisition aims to create a fully vertically integrated U.S.-based quantum platform, enhancing innovation and secure manufacturing capacity [5][4] Strategic Rationale - The merger is expected to accelerate IonQ's fault-tolerant quantum computing capabilities, solidifying its position as a leading provider in the quantum technology sector [2][8] - SkyWater's expertise in semiconductor foundry services will support IonQ's goal of scaling to millions of qubits, primarily through semiconductor engineering [6][14] Operational Benefits - The integration will allow for faster iteration cycles, reducing the time from design completion to first samples on a **256-qubit chip** from **9 months to 2 months** [16][22] - IonQ anticipates functional testing of the first **200,000-qubit chip samples** by **2028**, enabling **8,000 ultra-high fidelity logical qubits** [16][17] - The acquisition will enable the combined company to achieve industry-leading costs at scale, enhancing both performance and price competitiveness [17][18] Vertical Integration - The merger will provide a complete product lifecycle under one roof, from design and prototype to manufacturing and deployment, enhancing innovation and economic advantages [18][19] - The combined company will operate as a wholly-owned subsidiary, maintaining SkyWater's role as a merchant supplier to existing customers [12][42] Market Position and Future Outlook - IonQ aims to be the preeminent global quantum platform leader, focusing on revenue growth and market share expansion, which is expected to drive long-term margin expansion [20][21] - The transaction is positioned to support critical initiatives for the U.S. government and allies, enhancing national security through advanced quantum technologies [19][20] Additional Important Information - SkyWater's existing customer base includes **Infineon Technologies**, which is its largest customer following a previous acquisition [27] - The integration will be phased to ensure continuity and deepen technical collaboration, with a focus on maintaining high service levels for existing customers [42][43] - The partnership is expected to enhance IonQ's merchant supplier capabilities, allowing it to continue serving the quantum industry effectively [32][43] This summary encapsulates the key points discussed during the conference call regarding the strategic acquisition of SkyWater Technology by IonQ, highlighting the anticipated benefits and future direction of the combined companies in the quantum computing and semiconductor industries.