reply The mature node inflection we called in May is confirmed, and it is a supply story. Samsung and TSMC exit 8-inch wafer capacity, while AI pulls PMIC, BCD power, and silicon capacitor demand into the same specialty fabs. Three years of price erosion ended. DB HiTek's operating margin jumped 6pp on its first post-COVID hikes, PSMC rides a 45% DRAM wafer price adjustment, UMC notified customers of roughly 10% increases from July, and Hua Hong and TSMC keep raising through 2027. Non-TSMC gross profit rose 30% q/q on those hikes. Silicon photonics is the other driver, with co-packaged optics pulling the optical path into the package. Tower raised its 2028 model to $3.6B revenue and $1.2B net profit with SiPh at a $680M annualized run rate (2x q/q), and UMC's board put nearly $5B into SiPh and advanced packaging. (4/6)

reply The mature node inflection we called in May is confirmed, and it is a supply story. Samsung and TSMC exit 8-inch wafer capacity, while AI pulls PMIC, BCD power, and silicon capacitor demand into the same specialty fabs. Three years of price erosion ended. DB HiTek's operating margin jumped 6pp on its first post-COVID hikes, PSMC rides a 45% DRAM wafer price adjustment, UMC notified customers of roughly 10% increases from July, and Hua Hong and TSMC keep raising through 2027. Non-TSMC gross profit rose 30% q/q on those hikes. Silicon photonics is the other driver, with co-packaged optics pulling the optical path into the package. Tower raised its 2028 model to $3.6B revenue and $1.2B net profit with SiPh at a $680M annualized run rate (2x q/q), and UMC's board put nearly $5B into SiPh and advanced packaging. (4/6)

Source:https://x.com/SemiAnalysis_/status/2090907005498106205