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. Microsoft’s OpenAI Conundrum
- In Q126, Microsoft recorded $4.1 billion in net losses from investments in OpenAI, up from $688 million in the year ago quarter.
- The newly updated partnership between Microsoft and OpenAI has many clauses contingent on when (not if) AGI gets declared. Since AGI has no actual definition, an expert panel will decide.
- Sam Altman dreams of an OpenAI IPO so that detractors can be lured into shorting the stock and getting burned in the process. Revenue growth is a touchy subject, apparently
2. Taiwan Tech Weekly: Mediatek’s Power Move for 2nm Chips; Yet More TSMC Pricing Power
- TSMC Sets Sights on 3-10% Price Rises for Advanced Nodes
- MediaTek’s Leap Into the 2nm Era — Leading Edge Node Signals Market Leadership Ambitions
- Mediatek 3Q25: Good News (ASIC Revenue) But Weak Margins Getting Weaker. Stock Not Attractive.
3. NEC (6701 JP): Tie-Up with Siemens Adds to Growth Potential
- NEC and Siemens plan to develop an automated robot teaching system for faster set-up and more efficient operation of production lines incorporating multiple robots.
- NEC’s FY Mar-26 guidance raised on strong 1H results. BluStellar, which includes digital twins for robot teaching, grew faster than expected.
- Aerospace/Defense led sales growth and followed BluStellar in operating profit. Improving product mix and rising Japanese defense budget point to growing long-term potential.
4. Novatek (3034.TT): 4Q25 Decline; AI-Integrated Products Currently ~20% of SoC Revenue and Growing.
- 4Q25 Guidance: Revenue NT$22–23bn (declined 4.9% QQ); Entering traditional low season. Gross Margin: 35–38%; Operating Margin: 14.5–17.5%.
- AI-Integrated products currently ~20% of SoC revenue and growing. Image SoC / New Camera Trends: New AI Vlog cameras seeing positive demand.
- Key 2026 factors: FX, gold price, raw materials (KGD, substrate) supply.
5. Yageo 3Q25 Take-Aways: Passive Components Leader Benefitting from AI Applications Demand
- Strong AI Demand Sustains Revenue Growth Despite the Seasonal Headwinds
- Recent Shibaura Acquisition Enhances Yageo’s Strategic Positioning in Specialty Components
- We rate Yageo as a Structural Long – AI Content Cycle Should Drive Sustainable Mix Improvement
6. Vanguard (5347.TT): 3Q25 EPS Missed Expectations; 4Q25 and 1Q26 Decline Milder Than Seasonal Trend
- Management expects 4Q25 wafer shipments to decline 6–8% QoQ, while ASP should rise 4–6% QoQ, mainly due to lower DDI shipments.
- The AI revenue share has risen from a low-single-digit percentage in 2024 to a high-single-digit level in 2025.
- The worst phase of mature-node overcapacity has passed, and pricing pressure should ease entering 2026.
7. Taiwan Dual-Listings Monitor: TSMC Premium Eases Down; UMC & CHT Opportunity Levels
- TSMC: +21.8% Premium; Wait for Lower Premium Before Fresh Long
- UMC: +2.2% Premium; Good Level to Short the ADR Premium
- CHT: -2.0% Discount; Near Level to Go Long the ADR Spread
