Core Viewpoint - The semiconductor industry is facing significant challenges due to three negative factors: the end of the tariff war's pull-in effect, weaker-than-expected recovery in end-user applications, and continued pressure from the appreciation of the New Taiwan Dollar. [1] Group 1: Market Dynamics - Major IC design companies are expected to significantly reduce wafer foundry production volumes in the second half of the year due to market pressures. [1] - The semiconductor industry is primarily supported by AI demand, with TSMC being the biggest beneficiary, while companies involved in mature process foundries are under considerable pressure. [1] Group 2: Competitive Landscape - The uncertainty surrounding tariffs and China's official subsidy policies have led customers to pull in orders ahead of time, diminishing the benefits of early order placements as the U.S. implements equal tariffs globally starting August 1. [1] - The trend of U.S. restrictions on China remains unchanged, with China actively developing mature processes, increasing competition in mature semiconductors and niche memory sectors. [1] Group 3: Company Strategies - Companies like UMC and GlobalFoundries continue to face competition from China's 12-inch mature processes, leading to cautious order placements and a negative impact on capacity utilization in the second half of the year. [1] - To mitigate geopolitical risks, these companies are establishing new factories overseas and increasing local partnerships, which enhances their competitive capabilities and leads to a moderate increase in orders from de-risking strategies. [1]