This weekly newsletter pulls together summaries of the top ten most-read Insights across Tech Hardware and Semiconductor on Smartkarma.
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1. Intel (INTC.US): 18A May Have Been Too Rushed; Now All Hopes Rest on 14A.
- On July 24, chip giant Intel announced that its latest 18A advanced process is progressing smoothly. However, the next-generation 14A process will be developed “based on confirmed customer commitments.”
- Apple (AAPL US) adopt Intel’s 14A process for its future M-series chips, while NVIDIA Corp (NVDA US) is expected to use the same process for its entry-level gaming GPUs.
- U.S. President Trump is imposing tariffs on countries around the world, which is indirectly pressuring some manufacturers to accelerate the establishment of U.S.-based production facilities.
2. Taiwan Dual-Listings Monitor: TSMC ADR Premium Remaining Unusually High; UMC & ASE Headroom Changes
- TSMC: +26.3% Premium; Opportunity to Go Short the ADR Premium
- UMC: -1.2% Discount; ADR Headroom Falls Yet Again by a Significant Amount
- ASE: +0.7% Premium; Opportunity to Go Long the ADR Premium — ADR Headroom Has First Change in a Long Time
3. Microsoft FYQ425. Who Says Elephants Can’t Dance?
- Q425 revenues of $76.4 billion, up 5.5% QoQ, 18% YoY and handily beating guidance of $73.8 billion.
- Azure surpassed $75 billion in revenue in FY25, up 34% YoY, driven by growth across all workloads.
- Contracted backlog grew by $53 billion QoQ to reach $368 billion. Wow!
4. Yageo’s AI-Driven Momentum and Strategic Expansion Through Shibaura Acquisition
- 2Q25 Results Summary: Reports Broad-Based Growth with Specialty Margin Strength
- Yageo Inventory Recovery Marks a Demand-Led Inflection for Hardware Components
- Update on Shibaura Acquisition: Still on Track, Strategic Synergy in Focus
5. Taiwan Tech Weekly: Mediatek Reportedly Bests Broadcom for Meta Custom Chip Win; Semi Key Indicators
- MediaTek Reportedly Wins Meta’s 2nm AI Chip Order Over Broadcom
- Memory Monitor: SK Hynix Vs. Micron — Different Speeds & Focus, Same Structural Shift
- Semi Key Indicators Q2 2025: PC, Smartphone Unit Shipments, Global Semi & WFE Sales All Looking Good
6. Intel Q225. GM Obfuscation, Red Flags & 14A Now Officially A Risk Factor
- Intel reported Q225 revenues of $12.9 billion, up $200 million QoQ, flat YoY but $1.1 billion above the guided midpoint. After that revenue beat, things went downhill from there.
- CEO Lip Bu Tan said he will review and approve all future company product designs prior to tape out. Sounds like a vote of no confidence in the design team.
- Intel’s 10 Q now lists the possibility of pausing or abandoning 14A as a risk factor with doomsday details about the implications for the company
7. ASEH (3711.TT): FX Impact; AI Gains Attention; 3Q25 Grows, but GM and OPM Decline QoQ.
- 3Q25 guidance (Assuming US$1 = NT$29.2.): Consolidated US$ revenue: +12-14% QoQ; NT$ revenue: +6-8% QoQ; Gross margin: -1 to -1.2ppts QoQ; OPM: -0.1 to -0.3ppts QoQ.
- Still keep US$1bn advanced packaging guidance despite AI boom (TSMC revised up).
- Long-Term success definition for ASE: Transition from OSAT model to foundry-aligned scale.
8. Vanguard (5347.TT): FX Impact; Mild Recovery, Slightly Better Than 3Q25 Preview.
- 3Q25 Outlook (based on USD/TWD = 28.7): Wafer Shipments: +7–9% QoQ; ASP: +1–3% QoQ; Gross Margin: 25–27%.
- Revenue Mix (Industrial, Auto, 3C): Industrial + Automotive: 40%+ (majority industrial; automotive in teens) ; Communication & Computing: 20%+ each ; Consumer: 10%+.
- 2025 Dividend Policy : Will maintains NT$4.5 per share dividend.
9. Hon Hai(2317.TT): Form Strategic Alliance Via Share Swap with TECO (1504) For Global AI Data Center
- Hon Hai Precision Industry (2317 TT) and Teco Electric & Machinery (1504 TT) held a joint press conference this afternoon to announce the formation of alliance through a share swap.
- Teco (1504) TT and Hon Hai (2317 TT) stated their target markets extend beyond Taiwan and Asia, to include substantial business opportunities in the U.S. and the Middle East.
- Foxconn Chairman Mr. Young Liu also noted that as AI data centers scale up rapidly and demand surges, modular design is increasingly favored.
10. Tokyo Electron (8035 JP): Why the Big Downward Revision?
- Tokyo Electron’s share price dropped 18% on Friday following the announcement of weak Q1 results and a huge downward revision to H2 FY Mar-26 guidance.
- Push-Outs and/or cancellations of orders due to the uncertainty caused by President Trump apparently caught managment by surprise. Costs also rising as management ramps up capex and R&D.
- Impact of Trump’s yet-to-be-announced tariffs on semiconductors is still unknown, but 15% base rate on Japan already a negative.
