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): Abandon Promoting 18A to Fully Focus on 14A
- Even if Intel Corp (INTC US) ceases marketing 18A to new customers, the company will still fulfill existing foundry commitments.
- In response to the 18A dilemma, Intel’s initial solution is to redirect resources toward the development of 14A, a next-generation process where Intel hopes to gain an edge over TSMC.
- In addition to the strategic realignment of the foundry business, Tan’s broader efforts include refreshing Intel’s leadership team.
2. Taiwan Dual-Listings Monitor: TSMC High Premium Persisting, Record Short Interest in Local
- TSMC: +23.4% Premium; Consider Shorting ADR Spread at Current Level; Record Short Interest in Local
- UMC: +1.1% Premium; Wait for More Extreme Premium to Short
- ASE: +2.9% Premium; Near Level to Go Long the ADR Spread
3. TSMC (2330.TT; TSM.US): Halts GaN Production at Fab 5, Shifting to Advanced Packaging.
- Taiwan Semiconductor (TSMC) – ADR (TSM US) is planning to scale back its presence in the gallium nitride (GaN) market to focus on high-growth areas.
- To meet customer demand, Taiwan Semiconductor (TSMC) – ADR (TSM US) has recently been reallocating resources away from mature process nodes.
- We estimate that Navitas Semiconductor Corp (NVTS US) alone consumes over half of TSMC’s GaN capacity each month, making it TSMC’s largest GaN customer.
4. Kawasaki Heavy Industries (7012 JP): Sell into Strength
- KHI has retreated 12% from its June 30 high, but is still 69% above its April low, despite guiding for a decline in orders and weak profits in FY Mar-26.
- Orders from Japan’s Ministry of Defense are forecast to drop from ¥772.3 billion to ¥400 billion this fiscal year, while the overall profit of the Aerospace division drops 14%.
- The potential impact of U.S. tariffs on Power Sports & Engines is not factored into guidance, offsetting what otherwise seem to be conservative assumptions.
5. Our Thesis: Intel Should Take a Stake in UMC — New Signals Reinforce the Case
- UMC’s renewed push into 6nm, paired with Intel’s strategic overhaul under new CEO Lip-Bu Tan, raises the likelihood of an Intel equity stake in UMC.
- We maintain our Structural Long view on UMC and reiterate our original thesis: a deeper partnership via a stake from Intel would be transformative.
- At 12.5x trailing PER with a net cash position, UMC remains attractively valued as a strategic asset — especially if can essentially have its own ‘Group’ advanced fabs with Intel.
6. Meta Superintelligence Labs. Genius Move Or Desperate Gamble?
- On Monday, June 30, Meta CEO Mark Zuckerberg announced the creation of Meta Superintelligence Labs, staffing it with a host of leading researchers from the likes of OpenAI and Google
- With astronomical hiring bonuses and lucrative compensation packages, this newly assembled team will struggle to gel and likely drive an exodus of existing Meta AI employees elsewhere
- Yann LeCun is sidelined in the MSL memo. He believes LLMs are not the way to achieve human-level AI. It appears that Mark Zuckerberg disagrees. Let’s see…
7. Taiwan Tech Weekly: Has Samsung Given Up Chasing TSMC?; Xiaomi Tesla-Killer EV Using Key TSMC Chips
- Samsung Said to Have Give Up Chasing TSMC at the Leading Edge of Chip Manufacturing
- Xiaomi’s Tesla-Killer YU7 EV Surges in Orders — TSMC Rides the Wave as Core Chip Supplier
- TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC’s 2nm Market? We Think It’s Too Early to Say (II)
8. TechChain Insights: Chenbro Micom — How Server Racks Are Evolving With Nvidia’s B-Series & ASICs
- Key Player In Roll-Out of Nvidia’s New Blackwell Solutions. Having followed Chenbro closely over the past year, we’ve seen it steadily increase its exposure to the AI infrastructure cycle.
- Nvidia B200 and B300 Server Builds Are Ramping. Chenbro sees projects based on Nvidia’s B200 and B300 GPUs actively progressing, with B300 projects initiated and shipments starting in 2H25.
- Non-Nvidia ASICs also growing as a contributor. The company also sees AI systems based on custom ASICs as a growing contributor to the business.
