An AI chip worth thousands of dollars starts with cheap stuff you've never heard of — gallium, germanium, neon gas, and quartz sand from a tiny valley in North Carolina. Many of them come from almost a single source for the whole world. And in 2023–2025, China turned these "boring elements" into a trade weapon by controlling their exports. This is the story of the deepest pressure point in the chip economy — and of the West scrambling for a way out.
AI Memory Shortage Drives Demand An AI-driven memory shortage has pushed memory prices up roughly fourfold, boosting Micron's revenue and margins. This lifts demand for semiconductor materials used in memory production, such as wafers, gases, and chemicals.
This is the primary force driving demand for semiconductor materials in the period.
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Samsung's $90B Investment Supports Materials Samsung's $90 billion investment, including $40 billion for HBM and advanced packaging, plus new US fabs and a G7 critical minerals alliance, is expected to increase demand for wafer, gas, and chemical materials.
This capital investment directly boosts future demand for semiconductor materials.
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Export Scrutiny and Oversupply Risks US export scrutiny of ASML raises supply-chain disruption concerns, while over $75 billion in annual memory capacity investment could create a 2027–2028 glut, threatening future materials demand.
These are key risks that could negatively impact the semiconductor materials sector.
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Geopolitical and Legal Uncertainties Apple's pursuit of blacklisted Chinese memory adds geopolitical uncertainty, a DRAM price-fixing lawsuit weighs on sentiment, and record console prices show demand strain spreading to consumers, posing counterweights to the positive trend.
These factors introduce uncertainty and potential negative sentiment for the sector.
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Memory shortage and materials price hikes drive broad gains
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Memory shortage lifts materials demand and pricing Apple raised iPhone prices by £100, blaming a memory shortage dubbed 'RAMageddon' from AI datacentre demand, with memory costs up over 300% year on year. Sold-out memory means steady, well-priced orders for the wafers, gases and chemicals that go into chips.
Shows the memory shortage is worsening and directly driving materials demand and pricing.
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Materials makers post strong results and raise guidance Tri Chemical raised full-year net profit guidance to 6.5 billion yen on market expansion; Konfoong Materials' first-half profit rose 113.61%; Materion posted record Q2 and raised 2026 EPS guidance. These results confirm broad, durable demand across specialty materials, targets and chemicals.
Multiple materials makers beating expectations shows the theme's demand strength is broad-based.
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AI server demand drives PCB materials price hikes AI server demand and tight capacity sparked five rounds of electronic fabric price increases this year, with thick fabric prices doubling and thin fabrics up over 140%. High-end copper foil is in short supply, lifting Tongguan Copper Foil's profit 514.75%. This broadens materials demand beyond chips.
Shows AI demand is lifting a wider set of materials, not just chip-making chemicals.
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China's domestic equipment push pressures Western suppliers China now requires chipmakers to use at least 50% domestically made equipment for new capacity, and a state-backed firm began mass-producing domestic DUV tools. This threatens Applied Materials' $4.2 billion China revenue and ASML, but boosts Chinese materials and equipment makers.
A real counterweight: China's self-sufficiency push could shrink Western suppliers' addressable market.
Q3 2026
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AI Memory Boom Lifted Materials, But Supply and Trade Risks Grew
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AI Memory Boom Kept Materials Demand Strong Record DRAM and NAND prices, sold-out factory capacity, and big new plant investments by SK Hynix, Micron, and Korea's $576 billion plan pushed up prices for wafers, gases, chemicals, and circuit-board materials.
This is the main force that drove materials demand and pricing during the quarter.
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Governments Funded Non-China Materials Supply Governments put money into non-China supply chains for gallium, mining, and polysilicon, which should improve long-term availability of key materials and reduce reliance on a single country.
This is a new supply-side development that supports future materials availability.
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Tariffs and Export Controls Raised Costs US tariffs and export controls raised costs and hurt ASML's China sales. China's progress in DUV chipmaking tools and CXMT's IPO threatened Western pricing power, and chip stocks sold off sharply.
These are the main counterweights that pressured the sector during the quarter.
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New Fabs and Trade Tensions Could End Shortage New factories from Micron, CXMT, YMTC, and others could end the shortage and weaken materials pricing. Trade retaliation, a Kyushu earthquake, possible HBM content cuts, and China's domestic-equipment mandate added uncertainty.
These risks could reverse the positive demand trend and weigh on future materials pricing.
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Process Chemicals & Photoresist
Phichem's controlling shareholder and concert parties cash out about 200 million yuan by reducing 5.68 million shares and terminate the reduction plan early
Phichem announced on September 30 that its board of directors had received a notification letter from the controlling shareholder Phichem Holdings and its concert party Zhang Yanxia. As of the disclosure date, the two had cumulatively reduced their holdings in the company by 5,680,075 shares and decided to terminate this share reduction plan ahead of schedule. Shares not yet sold under the plan will no longer be reduced within the remaining period. Based on the average reduction price disclosed in the announcement, the shareholders cashed out approximately 200 million yuan in total from this reduction. The company had pre-disclosed the reduction plan on June 10, 2026. Phichem Holdings and Zhang Yanxia originally planned to reduce their combined holdings by no more than 5,669,464 shares within three months starting 15 trading days after the pre-disclosure announcement, through block trades or centralized bidding, representing no more than 1.00 percent of total share capital. Because the registration of shares vested under the first归属 period of the 2025 restricted stock incentive plan was completed in June 2026, total share capital increased from 566,946,450 shares to 570,033,250 shares, and the planned reduction amount was correspondingly adjusted to no more than 5,700,332 shares, with the proportion of total share capital unchanged. On the same day, the board also received a notification letter from Phichem Holdings and its concert parties Zhang Justin Jicheng, Zhang Alan Jian, Zhang Yanxia, and Xia Shifeng stating that their equity change had reached 1 percent. From May 20, 2025 to September 29, 2026, the combined shareholding ratio of the above shareholders decreased from 22.00 percent to 20.79 percent. Phichem is mainly engaged in the research, development, production, and sales of electronic chemical materials. Its 2026 semi-annual report showed that during the reporting period it achieved total operating revenue of 1.722 billion yuan, up 17.79 percent year on year; net profit attributable to the parent company was 267 million yuan, up 23.20 percent year on year; non-GAAP net profit was 260 million yuan, up 47.19 percent year on year; and net cash flow from operating activities was 478 million yuan, up 101.81 percent year on year.
Critical Materials & Supply Chain › Process Chemicals & Photoresist Capital
300398.CS · Capital · Negative Controlling shareholder and concert parties sold 5.68 million shares for about 200 million yuan, reducing their stake from 22.00% to 20.79%.
SUSS MicroTec Enters Wafer-Cleaning Market With GreenTec Solutions and GT200 System
SUSS MicroTec SE has entered the wafer-level cleaning market with the launch of its new GreenTec Solutions product line and its first system, the GT200. The company said the wafer-cleaning market it is targeting represents an addressable market of approximately EUR 5.4 billion, driven by advanced packaging, heterogeneous integration and rising semiconductor demand from AI and high-performance computing. The GT200 is designed for research and development, process qualification and production in 200 mm manufacturing environments for MEMS, RF, Power Device and CMOS applications, and combines the company's TurbulenStrip and CrustBuster process technologies in a single platform. SUSS said the GT200 is the first member of a scalable GreenTec platform and that it will expand toward high-volume manufacturing with a dedicated 300 mm HVM platform in 2027, pulled in from its original schedule due to strong customer interest, followed by a 200 mm HVM platform in 2028. Chief Executive Officer Burkhardt Frick called the launch an important milestone in the execution of the company's Ambition 2030 strategy, while Senior Vice President Photomask Solutions Yuta Nagai said the product line represents its vision for a next generation of semiconductor manufacturing where sustainability and process excellence go hand in hand.
National Silicon Industry Group Chairman Jiang Haitao Resigns Due to Job Change
National Silicon Industry Group announced that its board of directors recently received a written resignation report from Chairman Jiang Haitao. Due to a job change, Jiang Haitao applied to resign from his positions as chairman of the company's third board of directors, director, member and convener of the strategy committee, member of the nomination committee, and member of the remuneration and assessment committee. After his resignation, he will no longer hold any position in the company. Jiang Haitao does not hold any company shares, and there are no outstanding public commitments that have not been fulfilled. The company will complete the by-election of directors and the election of a new chairman as soon as possible in accordance with relevant regulations.
National Silicon Industry Group Chairman Jiang Haitao Resigns, No Longer Holds Any Position at the Company
National Silicon Industry Group announced on September 29 that its board of directors recently received a written resignation report from Chairman Jiang Haitao. Due to a change in work arrangements, he applied to resign from his positions as chairman of the third board of directors, director, member and convener of the strategy committee, member of the nomination committee, and member of the remuneration and assessment committee. After resigning, he will no longer hold any position at the company. Jiang Haitao is 54 years old this year and has served as a director of National Silicon Industry Group since June 10, 2021. Before his resignation, he was chairman of the company. He previously worked for a long time in the Shanghai port system and the Shanghai Federation of Trade Unions. Since May 2020, he has served as deputy party secretary of Shanghai Guosheng Group, and he currently serves as deputy party secretary, president, and director of that company. National Silicon Industry Group mainly produces polished wafers, epitaxial wafers, and SOI silicon wafers. On August 19, the company released its 2026 interim report. Operating revenue was 2.32 billion yuan, up 36.5 percent year on year. Net profit attributable to the parent company swung from a loss of 367 million yuan in the same period last year to a loss of 965 million yuan, with the loss widening further. Net profit attributable to the parent company after deducting non-recurring items swung from a loss of 481 million yuan in the same period last year to a loss of 958 million yuan, with the loss also widening further. Net operating cash flow was 179 million yuan, up 138.8 percent year on year. The company said the revenue growth was mainly driven by a year-on-year increase of more than 90 percent in sales volume of 300-millimeter semiconductor silicon wafers, while the year-on-year decline in profit was mainly due to increased research and development investment, higher financial expenses caused by exchange rate fluctuations, and increased asset impairment losses.
688126.CG · Regulation · Negative Chairman Jiang Haitao resigned from all positions, including chairman and board committees, creating leadership/governance uncertainty.
Sidike plans to invest over 1.6 billion yuan in a project to expand annual BOPET base film capacity by 103,000 tonnes
Sidike announced on the evening of September 23 that it plans to invest in a high-end functional BOPET base film expansion project with an annual capacity of 103,000 tonnes, with total investment estimated at about 1.652 billion yuan. The project will be implemented by its wholly owned subsidiary Jiangsu Xingyuantai New Material Technology Co., Ltd., located in Sihong, Jiangsu, with a construction period of 1.5 years. Funding will come from Xingyuantai's own capital and self-raised funds. The project aims to mass-produce multiple series of high-end functional BOPET substrate products, including MLCC release film base film, polarizer release and protective film base film, photosensitive dry film base film, general release and protective film base film, and window film base film, mainly serving downstream sectors such as microelectronic MLCC manufacturing, specialty optical devices, precision PCB circuits, smart terminal protection, automotive and building energy-saving window films, and industrial precision protection. The investment still needs to be submitted to the company's shareholders' meeting for approval before implementation, and requires approval or filing procedures from relevant government departments for project registration, environmental impact assessment, energy conservation review, safety evaluation, and fire protection acceptance. The 2026 interim report shows that in the first half of the year, the company achieved operating revenue of 1.593 billion yuan, up 14.11 percent year on year, and net profit attributable to shareholders of the listed company of 46.0118 million yuan, up 82.38 percent year on year.
300806.CS · Capital · Positive Sidike plans a 1.652 billion yuan BOPET base film capacity expansion, a major capex investment funded by its subsidiary.
Jiangsu Xingyuantai New Materials Technology Co., Ltd. · Capital · Positive Xingyuantai, Sidike's wholly owned subsidiary, will implement and fund the 1.652 billion yuan BOPET expansion project.
United StatesChinaJapanUnited KingdomKazakhstanUzbekistanSingaporeBangladesh
Semiconductor Materialsimpact 4
US and China Vie for AI Dominance as Pax Silica and WAICO Reach a Fork in the Road
The United States and China are competing for dominance in the race to spread artificial intelligence, accelerating their efforts to build self-centered "AI economic spheres." Late last year, the United States launched Pax Silica, an initiative to build secure supply chains for AI, semiconductors, and critical minerals, and the number of signatory countries and regions, centered on allies and friendly nations such as Japan and the United Kingdom, has grown to 25. In July of this year, China also established the World AI Cooperation Organization, or WAICO, with 29 countries to extend cheap AI models and communications infrastructure across the Global South. Dubbed an "AI version of the Belt and Road," it now has 38 participating countries. The US State Department was reported to have drafted a document asking Pax Silica signatories not to join WAICO, pressuring them to take a loyalty test, but Kazakhstan has joined both, and Uzbekistan, Singapore, and Bangladesh are also exploring "dual participation." The US-China summit on the 24th is likely to be a venue for gauging the future of cooperation and division over AI.
Apple raises iPhone prices by £100 as AI-driven memory shortage bites
Apple has raised the price of all iPhones, including older models, by £100, blaming a memory-chip shortage dubbed "RAMageddon" caused by AI datacentre demand. Component costs have risen sharply, with memory alone up more than 300% year on year, according to Francisco Jeronimo, vice-president of client devices at research company IDC, and some chips are now five times dearer than previously listed. Samsung and Google have added up to £80 to their flagship phones, while Apple has also raised prices on its refurbished stock by £60 to £70, including the older iPhone 15. IDC forecasts the steepest annual contraction in worldwide smartphone sales on record this year, falling almost 17% to just over 1bn handsets. The pain extends beyond phones: Microsoft added up to £220 to some Surface computers, many of Dell's high-end laptops have jumped by as much as 25%, and Microsoft raised the price of its near six-year-old console to £670 from its original launch price of £449. Key memory producers including SK Hynix suggest the shortages could last beyond 2030, and Jeronimo expects memory prices to keep rising well into 2027, warning that "the era of cheap smartphones – or any device to be honest – is over."
AAPL · Pricing · Neutral Apple raised all iPhone prices by £100, but the hike is a response to a 300%+ memory-cost surge that also threatens demand, so the net effect is mixed.
000660.KO · Pricing · Positive SK Hynix, a key memory producer, benefits as memory prices rise more than 300% and shortages are seen lasting beyond 2030.
DELL · Supply · Negative Dell's high-end laptop prices jumped as much as 25% due to the memory-chip shortage, squeezing costs and demand.
MSFT · Supply · Negative Microsoft raised Surface and Xbox prices (up to £220) because of the memory shortage, a cost-driven hit to its hardware business.
005930.KO · Pricing · Neutral Samsung added up to £80 to flagship phone prices amid the memory shortage, a cost-driven move with mixed demand implications.
JX Metals FY2026 Operating Profit Up 55.5% to 174.9 Billion Yen
JX Metals' full-year results for the fiscal year ending March 2026 showed revenue of 884.6 billion yen, up 23.7% year on year, operating profit of 174.9 billion yen, up 55.5%, and profit attributable to owners of the parent of 104.6 billion yen, up 53.3%. The main drivers of the revenue increase were higher sales of core products such as sputtering targets for semiconductors and rolled copper foil, along with rising copper prices, which outweighed the negative impact of a stronger yen. By reporting segment, Metals And Recycling posted the largest operating profit at 139.4 billion yen, followed by Semiconductor Materials at 39.4 billion yen and ICT Materials at 31.4 billion yen. Metals And Recycling's operating margin reached 35.7%, and although the segment accounted for 44.2% of revenue, it contributed an even larger share of profit. For the fiscal year ending March 2027, the company forecasts revenue of 1.025 trillion yen, up 15.9%, operating profit of 232 billion yen, up 32.6%, and net profit of 141 billion yen, up 34.7%. In the most recent first quarter of the fiscal year ending March 2027, revenue was 260.6 billion yen, operating profit was 81.4 billion yen, and quarterly profit was 53 billion yen, with operating profit having progressed to roughly 35% of the full-year forecast.
5016.JP · Capital · Positive FY2026 operating profit rose 55.5% to 174.9 billion yen with revenue up 23.7%, and FY2027 guidance forecasts further profit growth.
Cabot Expands Battery Materials Platform With $50M DOE Grant
Cabot Corporation is expanding domestic production of advanced conductive additives at its Franklin, Louisiana, and Pampa facilities through a modified $50 million grant from the U.S. Department of Energy's Office of Critical Minerals and Energy Innovation. The funding, combined with approximately $75 million of Cabot investment, is intended to meet rising demand for energy storage systems, AI infrastructure, data centers, grid modernization and broader electrification. Under the revised agreement, Cabot will redirect funding from its originally planned Michigan project toward a two-site brownfield expansion, a move expected to accelerate development, improve production efficiency and strengthen supply capabilities. The investment will support Franklin's production of LITX advanced battery-grade conductive carbons, while the Pampa facility will establish Cabot's first commercial-scale production of carbon nanostructures and part of its ENERMAX product family, with both projects expected to become operational by the end of 2028. Cabot's shares have gained 17% year to date compared with the industry's 13.7% rise in the same period.
Bualuang keeps TRADING BUY on KCE with 70 baht target, sees further price hikes through 2027
Bualuang Securities says a new angle for KCE shares is the possibility that the selling price increase cycle could extend into 2027, even though the market has already priced in the July increase and another in the fourth quarter of 2026. The key driver is not direct demand for AI circuit boards, but the cost of standard E-glass, the upstream raw material for CCL, which continues to rise after producers gradually shifted capacity to higher-grade materials for AI that offer better returns. Morgan Stanley's price index for standard E-glass fiber rose from 1.0 times in September 2025 to 3.7 times in August 2026 and 4.1 times in September 2026, while KCE's fiberglass purchase price rose from 0.49 US dollars per meter in the second quarter of 2025 to 0.74 US dollars per meter in the second quarter of 2026, an increase of 51% year on year, which is still much smaller than the rise in upstream raw material prices, leaving a risk that cost pressure will feed through further. The research team has not yet included a third price increase in 2027 in its base-case estimates, because the general-grade CCL market is not yet entirely in shortage. It keeps its assumptions for the July and fourth-quarter 2026 price increases, maintains its TRADING BUY rating with a 70 baht target price, and views any additional price increase in 2027 as upside rather than part of the base case. Core profit is expected at 1.44 billion baht in 2026, up 78% year on year, 2.07 billion baht in 2027, up 43.9%, and 2.30 billion baht in 2028, up 11.1%.
Japan Arrests Former Asahi Kasei Employee Over Leaking Semiconductor Adhesive Secrets to China
Japanese police have arrested a former employee of Asahi Kasei Corp, a major Japanese chemicals company, on suspicion of disclosing confidential information about adhesives used in semiconductor manufacturing to a Chinese company. The suspect is Shoichi Furukawa, 66. Police in Aichi Prefecture did not disclose whether he admits to the allegations. Police said Furukawa had served as head of the production technology department and in other positions before leaving Asahi Kasei in late November 2018, after which he went to work for a company in Nagoya. That company consulted police in August 2024 about a separate suspected case in which Furukawa was involved in an information leak. An examination of several items, including a computer seized during a search of Furukawa's home, confirmed that he took Asahi Kasei trade secrets out of the company. Kyodo News reported that Furukawa is suspected of failing to return a digital storage device containing information about the production of Novacure, a curing agent classified as a trade secret, on or around November 30, 2018, before sending that information by email to a person connected to another company on or around September 13, 2024.
China unveils five-year plan to build up electronics industry, targeting revenue above 4.5 trillion dollars by 2030
China has unveiled a new five-year development plan for manufacturing in electronics- and information technology-related industries, setting a target to raise revenue above 30 trillion yuan, or 4.5 trillion dollars, by 2030. The plan was drawn up jointly by the Ministry of Industry and Information Technology, or MIIT, and the National Development and Reform Commission, or NDRC. It covers the strategic framework from 2026 to 2030 and reflects the Chinese government's push for supply chain self-reliance, aiming for global leadership in strategically important emerging technologies from artificial intelligence to advanced computing, amid ongoing global competition. Beyond the revenue target, China also aims to raise research and development investment in the industry to 3.5% by 2030, setting out 17 missions covering nine key industry groups, from electronic components and materials, specialised manufacturing and measurement equipment, photonics, advanced computing, consumer electronics, power electronics, positioning and timing information technology, chips and AI endpoint devices, through to industrial electronics. The plan also drives technology development in the integrated circuit industry supply chain, while upgrading advanced electronic materials and smart sensors. In computing and memory, China will develop high-bandwidth flash memory alongside new forms of storage products such as Ferroelectric RAM, Resistive RAM and Magnetoresistive RAM, and aims to build very large-scale intelligent computing infrastructure supporting AI clusters equipped with hundreds of thousands of accelerator cards, while accelerating the deployment of space computing technology. The announcement of this sector-specific plan follows China's release on September 7 of its 15th five-year development plan for the information and communications industry, drawn up by the Ministry of Industry and Information Technology.
First Solar Drops Section 337 TOPCon Complaint, Keeps District Court Suits
First Solar said it will voluntarily withdraw its Section 337 complaint and move to terminate the pending US International Trade Commission investigation without prejudice to refiling, recalibrating its TOPCon intellectual property enforcement strategy. The company will continue pursuing its existing TOPCon patent lawsuits in US District Court against affiliates of Canadian Solar, Jinko Solar, T1 Energy, and Trina Solar, which had been stayed pending the Section 337 investigation, and it intends to resume enforcing its global patent portfolio against other manufacturers. First Solar said the decision follows the Trump Administration's national security action on imports of polysilicon and its derivatives under Section 232 of the Trade Expansion Act. General counsel Jason Dymbort called the move a procedural decision that clears the way for pending suits and additional suits the company anticipates filing. First Solar obtained the US TOPCon patents and related international counterparts through its 2013 acquisition of TetraSun, Inc., with validities extending to 2030 and beyond.
FSLR · Regulation · Neutral First Solar voluntarily withdraws its Section 337 ITC complaint but continues district court TOPCon patent suits, a procedural recalibration of its IP enforcement.
JKS · Regulation · Negative First Solar continues pursuing TOPCon patent lawsuits against Jinko Solar affiliates in US District Court.
688223.CG · Regulation · Negative JinkoSolar affiliates remain targets of First Solar's TOPCon patent litigation in US District Court.
688599.CG · Regulation · Negative Trina Solar remains a defendant in First Solar's continuing TOPCon patent lawsuits in US District Court.
TE · Regulation · Negative T1 Energy remains a defendant in First Solar's ongoing TOPCon patent lawsuits in US District Court.
Auride plans 868 million yuan private placement to boost computing power and sapphire, subsidiary sells 22 servers for 51.5 million yuan same day
Auride announced on the evening of September 14 that it plans to issue A-shares to no more than 35 qualified investors, raising up to 868 million yuan for an Inner Mongolia sapphire production base project, a western domestic server cluster project, and supplementary working capital. Of this, 282 million yuan is earmarked for the Inner Mongolia sapphire production base project with a two-year construction period; 346 million yuan will go to the western domestic server cluster project, which involves leasing a data center in Ulanqab and purchasing domestic servers and supporting equipment, with a construction period of just three months; and the remaining 240 million yuan will be used to replenish working capital. The number of shares to be issued will not exceed 30 percent of total share capital, the issue price will be no lower than 80 percent of the average stock trading price over the twenty trading days before the pricing reference date, and the subscription shares will be subject to a six-month lock-up period. The plan still requires approval from the shareholders' meeting, review by the Shanghai Stock Exchange, and registration approval from the China Securities Regulatory Commission. A separate announcement on the same day showed that Auride's wholly owned subsidiary Shenzhen Zhisuanli Digital Technology Co., Ltd. plans to sell 22 servers to Hainan Jingshu Technology Co., Ltd. for 51.5 million yuan. The net book value of the underlying assets is 24.9143 million yuan, meaning the transaction price represents a premium of 20.6609 million yuan over book value. Preliminary estimates put the asset disposal gain at about 20.5905 million yuan, which will be recognized in the company's current-period profit or loss for 2026. Auride's main businesses are integrated computing power services and sapphire products. In the first half of 2026, revenue reached 303 million yuan, up 38.29 percent year on year, with integrated computing power services contributing 213 million yuan, or 70.13 percent of total revenue.
Artificial Intelligence › AI Server OEM & System Integration Capital
Critical Materials & Supply Chain › Semiconductor Materials Capital
Artificial Intelligence › AI Data Center & Build-out Capital
600666.CG · Capital · Positive Auride plans an 868 million yuan private placement for sapphire and server cluster projects plus working capital, a financing event for the company.
600666.CG · Demand · Positive Wholly owned subsidiary Zhisuanli sells 22 servers to Hainan Jingshu Technology for 51.5 million yuan, a concrete product order.
Global photoresist prices rise up to 38%, Xilong Scientific hits limit up
Japan's JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical and other companies announced that from October 1, 2026, new photoresist pricing for global customers will be raised by 15% overall, with high-end ArF series long-term contract quotes up 16% to 22%, HBM-specific immersion ArF up as much as 24%, spot bulk orders up 32% to 38%, KrF series standard grades up 9% to 14%, and 3D NAND thick-film KrF up 18% to 20%. Boosted by the price hike news, the electronic chemicals sector remained strong all day. Xilong Scientific surged to limit up with heavy volume shortly after the midday open, hitting a two-month high, with turnover in less than 15 minutes exceeding the entire previous day's total. Haixing shares climbed rapidly on late-session volume, while Guangxin Materials and Zhongshi Technology also showed unusual upward moves during the session. Also lifted by the price hike news, the glass fiber sector index has risen for seven consecutive days, with Honghe Technology up for seven straight days, and China Jushi, International Composites and Sinoma Science & Technology all up for five consecutive days. The latest data from Sublime China Information shows that as of September 15, the ex-factory price of 7628 electronic fabric was about 11.5 to 12.1 yuan per meter, up 10% to 20% month on month, with the year-to-date gain reaching as high as 162%.
4186.JP · Pricing · Positive Tokyo Ohka Kogyo is among the companies raising global photoresist prices by 15% overall from October 1, 2026.
002584.CS · Pricing · Positive Xilong Scientific surged to limit up with heavy volume after JSR, Tokyo Ohka Kogyo and Shin-Etsu announced 15%-38% photoresist price hikes.
4063.JP · Pricing · Positive Shin-Etsu is among the companies raising global photoresist prices by 15% overall from October 1, 2026, lifting its product pricing/margins.
JSR Corporation · Pricing · Positive JSR announced the global photoresist price hikes of 15% overall with high-end ArF and HBM-specific grades up more, boosting its product pricing.
603115.CG · Pricing · Positive Haixing shares climbed rapidly on late-session volume amid the photoresist price-hike-driven electronic chemicals sector strength.
002080.CS · Pricing · Positive Sinoma Science & Technology rose for five consecutive days as the glass fiber sector rallied on the price-hike news.
Dell Books $6.1 Billion in AI Server GPU Orders in Fiscal Q2
Dell Technologies CFO David Kennedy told investors at Citi's TMT conference that the company booked $6.1 billion of AI server GPU orders in its fiscal second quarter, matching the amount booked across the prior three quarters, and $13.2 billion over the last 12 months. Kennedy said pipeline activity is multiples of backlog, spanning neocloud providers, sovereign customers and enterprises, with enterprise demand growing fastest by rate. Growth is broadening beyond AI GPUs: traditional server revenue rose 122% in the second quarter, with every geography, customer segment and vertical growing at triple-digit rates, while storage grew 26% and Dell guided for double-digit storage growth for the full year, expecting to add $2.5 billion in storage revenue and calling the coming quarter potentially a record for Dell storage. Kennedy said Dell expects the supply-demand imbalance to worsen next year, with DRAM and NAND the largest constrained components, prompting customers to discuss infrastructure requirements two, three and four years ahead and to seek multiyear supply-access commitments, though guaranteed supply does not mean guaranteed pricing. Dell's Infrastructure Solutions Group posted a 15% margin rate despite growth in lower-margin AI servers, and the company has guided to operating expenses equal to 8% of revenue, which Kennedy called its most efficient level in Dell's 42-year history, versus 20% six years ago. Dell has more than 6,500 enterprise AI customers, up more than 60% over the past six months, and its share repurchase authorization increased from $1.6 billion to $3.9 billion over 90 days.
Anji Technology received intensive research from 176 institutions last week, ranking first among 679 listed companies
This week, from September 7 to September 12 at the time of publication, 679 listed companies disclosed records of institutional investor research. Among them, Anji Technology received research from 176 institutions, making it the company with the largest number of institutional research visits. Anji Technology's main business is the research, development, and industrialization of key semiconductor materials. Its products include chemical mechanical polishing slurries, functional wet electronic chemicals, and electroplating solutions and additive series, mainly used in integrated circuit manufacturing and advanced packaging. Institutions focused on the company's submission of an application for H-share issuance and listing to the Stock Exchange of Hong Kong Limited, and asked whether overseas markets will be a growth priority in the future and the current progress of overseas expansion. Anji Technology responded that overseas markets are one of the company's important strategic directions. This application for H-share issuance aims to build an international capital operation platform, broaden diversified financing channels, and further enhance the company's international influence and overall competitiveness. In the past five trading days, Anji Technology's stock price rose 3.06 percent. Since the beginning of this year, the company's stock price has risen 30.88 percent, with a latest market value of 50 billion yuan.
Critical Materials & Supply Chain › Semiconductor Materials Capital
Semiconductors › Materials & Specialty Chemicals Capital
688019.CG · Capital · Positive Anji Technology applied for an H-share issuance and listing on the Hong Kong Stock Exchange to build an international capital platform and broaden financing channels.
HBM Shortage Lifts Micron Pricing Power as Nvidia Faces Margin Pressure
A global shortage of high-bandwidth memory is reshaping the economics of the AI chip market, strengthening Micron Technology's pricing power while pressuring Nvidia's GPU margins. Reuters reported September 10 that Chinese AI-chip makers including Huawei and Cambricon are raising accelerator prices because high-bandwidth memory has become increasingly scarce, with Huawei's upcoming Ascend 950DT quoted at more than 250,000 yuan, roughly 20% to 50% above earlier pricing. Micron's HBM4 is already in high-volume production for Nvidia's Vera Rubin platform, delivering more than 2.8 TB/s of bandwidth per stack, and the company has signed long-term agreements aimed at reducing the cyclicality that has historically plagued memory manufacturers. Nvidia, meanwhile, must share more of each AI server's system economics with memory, networking, foundry and packaging suppliers, and higher HBM costs can pressure margins or raise system prices. Hedge-fund positioning improved for both stocks in the second quarter, with Micron ownership rising to 184 funds from 154 and Nvidia to 285 from 275, while short interest stood at approximately 2.7% of Micron's float and 1.2% of Nvidia's as of August 14.
MU · Pricing · Positive Global HBM shortage strengthens Micron's pricing power, with HBM4 in high-volume production and long-term agreements reducing cyclicality.
NVDA · Supply · Negative Scarce HBM forces Nvidia to share more AI server economics with memory suppliers, pressuring GPU margins or raising system prices.
688256.CG · Pricing · Positive Cambricon is raising accelerator prices amid the HBM shortage, with Huawei's Ascend 950DT quoted 20-50% above earlier pricing.
Huawei · Pricing · Positive Huawei is raising prices on its Ascend 950DT accelerator due to scarce high-bandwidth memory.
Huawei raises price of Ascend 950DT AI chip by 60% to 250,000 yuan
Huawei Technologies has told some customers that it raised the price of its flagship Ascend 950DT artificial intelligence accelerator chip by about 60% over the past three months, to 250,000 yuan per unit, a price close to that of Nvidia's B200 chip. The increase comes as demand for AI chips in China grows faster than production capacity and a severe shortage of HBM memory is driving up manufacturing costs. Both Nvidia and Huawei sell AI chips in sets of eight or more, with actual prices varying according to order size and the networking equipment customers buy on top. DeepSeek plans to install at least 160,000 Ascend 950DT chips in a large data center project in Inner Mongolia, which could be one of the largest publicly disclosed Huawei AI chip clusters. Huawei, headquartered in Shenzhen, is prioritizing deliveries of the chip to major Chinese technology companies and AI infrastructure developers. Reuters previously reported that Cambricon Technologies, another Chinese AI chip maker, is raising its chip prices by up to about 30%, also citing cost pressures and rising demand.
Huawei · Pricing · Positive Huawei raised the Ascend 950DT price ~60% to 250,000 yuan per unit amid demand outpacing capacity and HBM shortages.
DeepSeek · Demand · Positive DeepSeek plans to install at least 160,000 Ascend 950DT chips in an Inner Mongolia data center, a large concrete order.
688256.CG · Pricing · Positive Reuters reports Cambricon is raising its own chip prices by up to ~30% citing cost pressures and rising demand.
NVDA · Competition · Neutral Huawei's Ascend 950DT price now near Nvidia's B200, framing Huawei as a direct rival, but no Nvidia-specific development is reported.
Memory Prices to Stay High for Years, Analyst Warns
Top technology analyst Paul Meeks of Freedom Capital Markets warned on CNBC that memory prices will not ease for years, affecting even Apple, which faces margin erosion from rising costs. Micron, SK Hynix, and Samsung control about 90% of the memory market, and supply is expected to remain tight beyond calendar 2027. Micron has secured roughly $100 billion in minimum-price customer agreements with floor prices above its prior peak gross margins. Apple's Tim Cook described the situation as a "100-year flood," and the company has raised iPad and Mac prices in response. Micron's stock has surged 662% over the past year, while Apple's shares are up 33.43%.
Memory Chips Now Dominate Over Half of Semiconductor Revenue
Memory chips now account for 50%-55% of semiconductor industry revenue, up from roughly 20%-30% historically, according to Susquehanna analyst Mehdi Hosseini. Hosseini said Wednesday that memory has become the industry's new "king" as AI data centers demand more of it, calling it the "primary driver" of semiconductor revenue growth, with total industry revenue on track to reach roughly $1.5 trillion this year. The AI spending boom is no longer just about processors from Nvidia Corp.; data centers also need huge amounts of DRAM and NAND. Research firm TrendForce expects DRAM and NAND to absorb 47% of major cloud providers' total capital spending this year, rising to 68% in 2027. Micron Technology Inc. is a clear beneficiary: its DRAM revenue rose 65.5% to $36 billion in the calendar second quarter, giving it a 23.3% market share, and it has begun high-volume shipments of HBM4. However, memory is historically cyclical, and competition is increasing, with Chinese rival CXMT capturing 10% of global DRAM revenue in the second quarter, up from 4% a year earlier.
MU · Demand · Positive Memory chips now dominate semiconductor revenue due to AI data center demand; Micron's DRAM revenue rose 65.5% and it began HBM4 shipments.
688825.CG · Competition · Negative CXMT is a Chinese rival gaining DRAM market share, but article does not detail impact on CXMT itself; competition increasing.
Rocket Lab Unveils Germanium-Free Solar Cell for Space
Rocket Lab Corporation has announced the production release of its Inverted Metamorphic (IMM) Apex solar cell, a next-generation product designed to reduce reliance on supply-constrained critical minerals. The new cell achieves a Beginning of Life conversion efficiency of 31.5% and is 40% lighter than conventional cells, offering best-in-class specific power while maintaining radiation hardness. Unlike traditional multi-junction cells, IMM Apex eliminates the use of germanium substrates, mitigating rising costs and supply chain issues. It is a drop-in replacement for existing germanium-based cells, allowing customers to integrate it without retooling. The technology builds on Rocket Lab's proven IMM cells, which powered NASA's Ingenuity Mars Helicopter and have been used in space for over a decade. The company says optimized manufacturing enables efficient production in multi-100-kilowatt volumes to meet growing demand.
RKLB · Technology · Positive Rocket Lab announces production release of its new IMM Apex solar cell, a next-gen product with higher efficiency and lighter weight.
TechInsights chief strategy officer Dan Kim expects the AI-driven memory-chip supply crunch to intensify to a '10 out of 10' level of craziness and remain there through at least the end of 2027, according to a Financial Times report. Kim rated current conditions an eight out of 10, with DRAM prices projected to rise more than 200% year over year, a move he called historically unprecedented. Significant new supply is not expected until late 2027 or early 2028, leaving higher prices to balance surging demand against limited production. High-bandwidth memory used with AI accelerators has effectively sold out, and shortages have spread to other memory products, with automotive and medical-device customers facing allocation limits. Mainstream DRAM remains dominated by Samsung, SK Hynix, and Micron, while Chinese producers YMTC and CXMT are emerging challengers, with YMTC producing roughly 10% to 15% of global NAND bits and CXMT gaining share in Chinese smartphones despite lacking EUV lithography access.
Artificial Intelligence › AI Compute & Accelerator Silicon Supply
000660.KO · Supply · Positive SK Hynix is a dominant DRAM producer and high-bandwidth memory is sold out, leading to higher prices and profits.
005930.KO · Supply · Positive Samsung dominates mainstream DRAM and benefits from the memory supply crunch and rising prices.
MU · Supply · Positive DRAM prices projected to rise over 200% YoY due to AI-driven supply crunch, benefiting Micron as a dominant DRAM producer.
688825.CG · Competition · Positive CXMT is gaining share in Chinese smartphones despite lacking EUV, benefiting from the shortage as customers seek alternatives.
Yangtze Memory Technologies Co. (YMTC) · Competition · Positive YMTC produces 10-15% of global NAND bits and is an emerging challenger, benefiting from the memory shortage.
China Imposes Anti-Dumping Measures on Chip Material from Japan
China's Ministry of Commerce has announced anti-dumping measures on imports of dichlorosilane from Japan, a chemical used in semiconductor manufacturing. Importers will be required to place deposits at rates up to 99.2%, effective from today (September 8). Although the measures target a specific product, they signal an escalation of diplomatic tensions between China and Japan stemming from last year's Taiwan issue. Japanese Chief Cabinet Secretary Minoru Kihara said the government will closely monitor the measures and work with businesses to prevent severe impacts. Shares of Chinese companies involved in dichlorosilane production rose, led by Tangshan Sunfar Silicon Industry Co., which hit the 10% daily limit on the Shanghai Stock Exchange. Meanwhile, Japan's Shin-Etsu Chemical Co. fell 1.5%, with a spokesperson saying the measures will not affect the company's revenue as dichlorosilane accounts for only a small portion of its overall business. The diplomatic conflict between China and Japan began in November 2025 after Japanese Prime Minister Sanae Takaichi suggested sending troops to intervene if China attempted to take Taiwan by force. The latest move comes ahead of Takaichi's expected visit to the United States this month, while President Xi Jinping is scheduled to meet President Donald Trump at the White House on September 24.
603938.CG · Tariff · Positive China's anti-dumping deposits on Japanese dichlorosilane imports benefit domestic producers like Tangshan Sunfar, whose shares hit the 10% limit.
4063.JP · Tariff · Negative China's anti-dumping measures on Japanese dichlorosilane hit Shin-Etsu, though it says the product is a small portion of revenue.
Sanfu Shares Hit Limit-Up with 160,000 Lots Queued
On September 8, major A-share indices opened mixed, with agricultural products and precious metals among the leading sectors. Sanfu Shares hit limit-up at 44.43 yuan per share, with 160,000 lots queued on the buy side. On the news front, on September 7, China's Ministry of Commerce issued an announcement deciding to impose provisional anti-dumping measures on imports of dichlorosilane originating from Japan. Dichlorosilane is mainly used in thin-film deposition during chip manufacturing, and several A-share companies have production capacity for it. Among them, Sanfu Shares' wholly-owned subsidiary Tangshan Sanfu Electronic Materials has an electronic-grade dichlorosilane capacity of 500 tonnes per year, with plans to expand to 850 tonnes per year.
603938.CG · Regulation · Positive China's anti-dumping measures on Japanese dichlorosilane imports benefit domestic producers like Sanfu, which has electronic-grade dichlorosilane capacity.
FSPG Hi-Tech Plans to Raise 4 Billion Yuan to Expand High-End Separator Capacity, Industry Association Warns of Overcapacity Risks
FSPG Hi-Tech released a private placement plan on the evening of September 3, aiming to raise no more than 4 billion yuan for a green high-end wet-process separator project with annual capacity of 4 billion square meters at its Shaoguan base, a green high-end coated separator project with annual capacity of 4 billion square meters under Wuan Jinli New Energy, and supplementary working capital. The high-end wet-process project is expected to raise no more than 2 billion yuan, with total investment approaching 8 billion yuan. The expansion will be carried out by a project company funded by Jinli New Energy, a wholly owned subsidiary that FSPG Hi-Tech acquired for about 5 billion yuan and consolidated only in February this year. After consolidation, FSPG Hi-Tech's revenue for the first half of 2026 grew 259.61 percent year on year, while net profit attributable to the parent company surged 1,608.12 percent. The former shareholders of Jinli New Energy had pledged that net profit attributable to the parent company after deducting non-recurring items would be no less than 230 million yuan, 360 million yuan, and 610 million yuan for 2025, 2026, and 2027 respectively, totaling 1.2 billion yuan over three years. Meanwhile, the China Plastics Processing Industry Association issued a risk warning on September 7, calling on all parties in the supply chain to invest rationally. It noted that the separator industry is asset-heavy with long construction cycles, and if new capacity is released in a concentrated manner while demand growth fails to keep pace, it will bring oversupply risks. Industry leaders Semcorp and Putailai have also announced investments of 4 billion yuan and 5.6 billion yuan respectively to build separator projects, and the concentrated release of high-end capacity may have an adverse impact on product prices.
000973.CS · Capital · Neutral Subject of the story: plans a 4 billion yuan private placement to fund high-end separator capacity expansion, with strong H1 2026 revenue/profit growth from the Jinli consolidation.
000973.CS · Supply · Negative The China Plastics Processing Industry Association warns that concentrated release of new separator capacity, including this expansion, risks oversupply.
603659.CG · Competition · Negative Named as an industry leader that has announced a 4 billion yuan separator project, contributing to the concentrated capacity release and overcapacity risk flagged by the association.
German Wacker faces closure of its polysilicon plant in Tennessee
Germany's Wacker Chemie is considering closing its polysilicon plant in Charleston, Tennessee, according to sources familiar with the matter. The move comes as new trade measures by the Trump administration have reduced the plant's customers to just two. Wacker is expected to decide within the next few weeks whether to shut down the facility, which employs about 600 people. After Reuters reported the news, the company said it had "no plans to close" the plant but continued discussions with the administration. On August 6, the Trump administration announced plans to impose minimum prices and tariffs on imports of ingots, wafers, solar cells, and solar panels made from polysilicon. However, industry sources point out that since the policy applies based on the country of manufacture of the product, not the origin of the polysilicon material, it is unlikely to boost demand for U.S.-made polysilicon. According to market research firm Bernreuter Research, U.S.-made polysilicon can cost up to four times as much as Chinese-made material.
SanDisk Surges 8% as Memory Stocks Rally on Sector Flow
SanDisk stock surged 8% to $1,686 in Friday morning trading, leading a broad rally in memory and storage names despite no company-specific news, with Micron Technology up 5% to $1,003.22 and Western Digital gaining 4% to $460.19. The sector move comes as the Labor Department reported 162,000 jobs added in August, far exceeding the forecast of 65,000, pushing rate-hike expectations higher yet failing to dampen the memory bid. SanDisk's rally extends a 555% year-to-date gain built on fiscal fourth-quarter revenue of $8.96 billion, up 371.6% year over year, with adjusted earnings of $39.25 per share beating the consensus estimate of $33.28 and a GAAP gross margin of 84.6%. The company guided fiscal first-quarter revenue to $10.30 billion to $10.80 billion, above its latest quarter, signaling continued NAND pricing strength. Micron has flagged tight DRAM and NAND supply persisting beyond 2027, while Western Digital reported blended storage prices climbing in the high teens year over year, reinforcing the view that the pricing cycle remains intact.
TSMC's 67.7% Margin Spurs Solvay to Double Taiwan Peroxide Capacity
Taiwan Semiconductor Manufacturing, the world's dominant contract chipmaker, is getting a supply-chain boost as Solvay plans to more than double Taiwan's annual production capacity for ultra-pure hydrogen peroxide from 35,000 tonnes to over 70,000 tonnes by year-end, Reuters reported Thursday. The electronic-grade chemical is used to clean wafers, where microscopic contaminants can destroy complex circuitry. Solvay is scaling its Tainan joint venture and targeting a threefold expansion of its global electronic-grade peroxide business within five to seven years. TSMC's second-quarter results delivered $40.2 billion in revenue, a 67.7% gross margin, and a 60.3% operating margin, and suppliers rarely double capacity without seeing serious demand ahead. However, TSMC's share price of $411.3263 sits 27.52% above its GF Value of $322.57, indicating investors already expect near-flawless execution.
South Korea Set to Widen Lead Over China in Memory Chip Market
South Korea's central bank expects the country to expand its advantage over China in the memory chip market, as Samsung Electronics and SK Hynix accelerate the expansion of domestic production facilities. New plants set to begin operations by 2028 will add about 600,000 wafers per month in capacity. Meanwhile, Chinese manufacturer CXMT is likely to increase its capacity to about 600,000 wafers per month from the current 300,000. However, the Bank of Korea (BOK) notes that these figures do not reflect actual production volumes, as CXMT still faces yield and technology constraints, with actual shipment share of only 8% of the global market, compared to a theoretical capacity share of 15%. China's expansion comes amid a global chip shortage that has pushed prices to record highs. CXMT raised nearly $10 billion from its IPO in July, and YMTC aims to raise $4.6 billion through a domestic share sale. Nevertheless, the BOK believes South Korea will maintain its edge in advanced chips, as U.S. export controls limit China's access to technology.
000660.KO · Supply · Positive SK Hynix expanding domestic production facilities, widening lead over China in memory chips.
005930.KO · Supply · Positive Samsung expanding domestic production facilities, widening lead over China in memory chips.
688825.CG · Technology · Negative CXMT faces yield and technology constraints, actual shipment share only 8% vs theoretical 15%.
Yangtze Memory Technologies Co. (YMTC) · Capital · Negative YMTC aims to raise $4.6 billion through domestic share sale, but faces U.S. export controls limiting technology access.
Pimco trims Magnificent Seven holdings, shifts to chips and Asia
Pimco, a major fund manager, has adjusted its investment strategy by reducing its weight in large U.S. technology stocks, particularly the Magnificent Seven group, due to high valuations and AI investments that increase debt burdens. At the same time, it has increased investments in Asia, especially in semiconductor, materials, and financial stocks. Emmanuel Sharef, who manages the flagship Balanced Income and Growth Fund with assets of nearly $19 billion, stated that most hyperscaler companies have been underweighted, while Asia remains overweight because companies in the region have strong earnings prospects and are a key part of the AI supply chain. The fund has also increased its allocation to biotechnology and life sciences stocks over the past 18 months and is positive on financial and materials stocks in China, with the MSCI China Materials index rising 7.1% in one month. This strategy reflects that AI opportunities are spreading to infrastructure companies in Asia and other industries.
Four U.S. Companies to Invest $2 Billion in South Korea in Semiconductors and Energy
South Korea's Ministry of Trade, Industry and Energy announced on the 4th that four U.S. companies have decided to invest a total of $2 billion in South Korea in the fields of semiconductors, advanced materials, and energy. The investments were announced at a ceremony attended by Trade Minister Cheong In-kyo in Washington on the 3rd. U.S. industrial gas giant Air Products will expand facilities for semiconductor gases and rare gases in Pyeongtaek, Gyeonggi Province, and semiconductor equipment maker Axcelis will expand its production of ion implantation equipment in South Korea. Additionally, materials giant Corning will invest in advanced glass and other materials used in displays and semiconductors, and renewable energy developer Pacifico Energy will proceed with a 3.2-gigawatt offshore wind power project in the southwest, where a new semiconductor cluster is expected to be established.
Shanghai Securities Morning Brief: Jingzhida secures 1.576 billion yuan order; Shengtun Mining plans 709 million yuan acquisition of mining company
Today, Konka Group plans to voluntarily terminate its listing, with trading suspended from the market open on September 4. Meanwhile, Jingzhida recently signed a semiconductor testing equipment procurement agreement with a client, with a total contract value of 1.576 billion yuan, and delivery is expected to be completed within two years. Shengtun Mining's subsidiary Sichuan Shengfengyuan Mining plans to acquire 65% equity in Tibet Haiteng Industrial for 709 million yuan. The target company holds exploration rights for the Bagala East lead-zinc mine, and its identified silver metal volume meets the standard for a large-scale domestic silver mine. In addition, the State Council Information Office will hold a press conference at 10 a.m. on September 4 to introduce progress in promoting high-quality development of medical insurance. The U.S. August nonfarm payrolls report will also be released that day.
000016.CS · Regulation · Negative Konka Group plans to voluntarily terminate its listing, with trading suspended from September 4.
精智达 · Demand · Positive Jingzhida signed a semiconductor testing equipment procurement agreement worth 1.576 billion yuan, to be delivered within two years.
西藏海腾实业有限责任公司 · Capital · Positive Tibet Haiteng Industrial is the acquisition target, with its Bagala East lead-zinc mine holding large-scale domestic silver resources.
600711.CG · Capital · Positive Shengtun Mining's subsidiary plans a 709 million yuan acquisition of 65% of Tibet Haiteng, which holds a large-scale silver-lead-zinc exploration right.
Tim Cook Steps Down as Apple CEO, Warns of 'Hundred-Year Flood' in Memory Chip Prices
After 15 years at the helm of one of the world's most valuable companies, Cook stepped down as chief executive on Sept. 1, handing the reins to longtime hardware chief John Ternus. Cook remains as executive chairman, but in his final earnings call he warned that Apple faced a "100-year flood" in memory-chip pricing, driven by AI data center demand. He told The Wall Street Journal, "This is a hundred-year flood. I've never seen anything like it in any area in over 40 years." Tesla and SpaceX CEO Elon Musk publicly agreed, calling it the "biggest price jump in anything I've ever seen." Apple has raised prices on Mac and iPad models, and other makers like Microsoft, Hewlett-Packard, Dell, and Nintendo have followed. Cook's warning underscores that inflation, though eased from its 2022 peak, still threatens purchasing power, with $100 in 2026 equaling just $11.61 in 1970.
NVIDIA Faces Margin Pressure from Rising Memory Costs
NVIDIA Corporation's gross margin faces a new test as memory prices rise sharply amid the AI infrastructure boom, with the company expecting its non-GAAP gross margin to decline from 75% in the second quarter of fiscal 2027 to 74% in the third quarter and 71%-72% in the fourth quarter before recovering to 72%-73% in fiscal 2028. The pressure stems from higher memory costs, which are a significant component of NVIDIA's AI systems, but the company is taking steps to mitigate the impact, including increasing supply and capacity commitments to $279 billion and working with memory suppliers Micron Technology, SK Hynix, and Samsung to expand capacity. NVIDIA also plans to implement price increases beginning in fiscal 2028 to help margins recover. Despite near-term pressure, NVIDIA's strong pricing power and robust demand for Blackwell Ultra and Vera Rubin are expected to keep gross margins comfortably above 70%. In comparison, rivals Advanced Micro Devices and Intel are also seeing margin improvements but have lower cushions to absorb rising memory costs, with AMD's non-GAAP gross margin at 56.2% and Intel's at 41.8% in their respective second quarters.
Broadcom Inc. reported record AI semiconductor revenue of $16.7 billion, up 221% year over year, and total revenue of $29.6 billion, up 86%, but its stock fell as the company guided fourth-quarter gross margin down to approximately 73% from 78% a year ago, citing rising memory content in its custom AI accelerators. CFO Amie O'Toole said the increasing mix of XPUs with higher memory content is diluting consolidated gross margin, which has compressed 410 basis points over two quarters. The company sees about $350 billion in AI semiconductor revenue across fiscal 2027 and 2028, but faces rising DRAM prices, which TrendForce says jumped 90% to 95% quarter over quarter in early 2026, with NAND up 55% to 60%. CEO Hock Tan noted that Broadcom is building additional substrate capacity in Singapore to address supply bottlenecks, highlighting that AI infrastructure is becoming a system-level investment challenge involving memory, substrates, networking, and power.
5N+ Wins US$7.3M Award for Domestic GaAs Production
5N Plus Inc. has been selected by the U.S. Department of War to receive a US$7.3 million award to establish domestic production of gallium arsenide components for U.S. defence applications, following its presentation at the inaugural Defense Industrial Base Accelerator Pitch Competition in Philadelphia. The award addresses a critical supply chain gap, as there is currently no qualified domestic source of GaAs electro-optical components, and will support production at 5N+'s facility in St. George, Utah. The company plans to expand its Utah operations with crystal-growth and GaAs compounding equipment, and will work with initial customer Lockheed Martin to complete product qualification before moving to low-rate production. The capabilities developed could also support future production of GaAs substrates and other advanced materials for defence and space applications, broadening 5N+'s addressable market.
5N Plus Inc. · Demand · Positive Selected by the U.S. Department of War for a US$7.3M award to establish domestic GaAs production, a concrete government order/customer win.
Memory-Chip Scarcity Could Extend Through 2027, Boosting These ETFs
The AI boom is straining semiconductor supply, with memory-chip scarcity potentially persisting through 2026 and 2027, according to Synopsys CEO Sassine Ghazi, as quoted on CNBC. High-bandwidth memory (HBM) demand from AI data centers is diverting production away from consumer electronics, benefiting manufacturers like Samsung, SK Hynix, and Micron Technology. SK Hynix said on Aug. 27, 2026, that it expects the shortage to last through 2030 and announced a $4-billion Indiana facility for HBM4E packaging. Investors can gain exposure through ETFs such as iShares MSCI USA Value Factor ETF (VLUE), which holds 20.45% Micron, and Roundhill Memory ETF (DRAM), which allocates 25.25% to Samsung, 25.10% to Micron, and 21.80% to SK Hynix. However, risks include high valuations and potential slowdowns in AI spending or faster capacity expansion.
Chinese smartphone makers raise prices across the board, Huawei up to 1,000 yuan
Chinese smartphone makers have implemented across-the-board price increases, with Huawei Technologies raising prices by up to 1,000 yuan. The increases are mainly attributed to rising component costs, including semiconductors, and currency fluctuations. The extent of the price hikes varies by model, with some of Huawei's high-end models seeing increases of up to 1,000 yuan. Other major manufacturers have also announced price increases ranging from a few percent to around 10 percent, with the impact on consumers spreading.
Japan's AI Infrastructure Stocks Show Strength in Global Climate Change Index
Japanese companies are performing well in the Indxx Climate Change Index, which is composed of stocks that contribute to global warming countermeasures. Four of the top 10 gainers year-to-date are Japanese companies, with battery maker GS Yuasa up 41%, water treatment company Kurita Water Industries up 26%, and waste incinerator and water treatment firm Takuma and power semiconductor maker Sanken Electric both up 23%, far outpacing the index's 5% gain. During the same period, the Tokyo Stock Price Index (TOPIX) rose 23%. The generative AI boom has led to the development of large-scale data centers, which increases power consumption and heat generation, drawing investor attention to cutting-edge semiconductor manufacturing, energy storage, and cooling technologies. Oscar Young of Impax Asset Management, which specializes in sustainable investment, noted that if large-scale semiconductor plant investment continues in Japan, the beneficiaries would be semiconductor materials and manufacturing equipment makers, water treatment, and power management companies. According to Ministry of Internal Affairs and Communications data, ICT sector power demand in 2040 is expected to be up to 27 times that of 2020, highlighting the growing importance of energy efficiency and cooling. Kioxia Holdings will invest 5 trillion yen in Japan over the next six years with U.S. partner SanDisk, and South Korea's SK Hynix is also considering building a plant in Japan. A Japan Development Bank survey shows that major companies' domestic capital investment plans for fiscal 2026 are expected to rise 19.7%. Meanwhile, caution is emerging, with New York State halting new data center development for one year. The Nikkei semiconductor stock index has plunged 27% this quarter, but Tiemo Lang of Polar Capital believes the acceleration trend in AI investment will continue and that the correction is unlikely to cloud the outlook for environmental infrastructure companies.
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Demand
Energy Transition & Power Demand › Firm Power & Transition Fuels ▲Demand
285A.JP · Capital · Positive Kioxia will invest 5 trillion yen in Japan over six years with U.S. partner SanDisk, a major capital investment plan.
6370.JP · Demand · Positive Named as a top index gainer (up 26%) and cited as a beneficiary of semiconductor plant investment via water treatment demand.
6674.JP · Demand · Positive Named as a top index gainer (up 41%) amid investor attention to energy storage technologies driven by AI data-center power needs.
6707.JP · Demand · Positive Named as a top index gainer (up 23%) as power semiconductor demand rises with AI data-center power consumption.
SNDK · Capital · Positive Kioxia will invest 5 trillion yen in Japan over six years with U.S. partner SanDisk, signaling major capital commitment.
000660.KO · Capital · Neutral Article notes SK Hynix is considering building a plant in Japan, a passing mention with no concrete decision or terms.
