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For a long time, Chinese contract manufacturers, such as Foxconn, Luxshare Precision, and Goertek, have been dubbed "Apple workers." This term, frankly, isn't a pleasant one, as it often implies that Chinese companies are forced to rely on cheap labor to perform low-paying tasks in the consumer electronics and tech product value chains, arguably the world's most lucrative. But things are changing now. In September of this year, a bombshell announcement rocked the tech world: OpenAI, Silicon Valley's most prominent AI giant, had approached China's Luxshare Precision to collaborate on AI hardware. This wasn't a simple contract manufacturing relationship. According to The Information, OpenAI and Luxshare Precision have reached a strategic partnership agreement to jointly develop a consumer AI device, with mass production expected as early as late 2026 or early 2027. This time, Luxshare Precision is no longer simply a "contract manufacturer," but will work with OpenAI to "jointly define products and participate in software and hardware collaboration." This news is truly significant: it signifies that a large number of Chinese companies, represented by Luxshare Precision, have achieved substantial progress in industrial upgrading. Chinese companies with mastered manufacturing expertise have already gained considerable influence. Luxshare Precision's move is no accident. Since the tariff war began in April of this year, Apple has gradually shifted production to India and Vietnam. Coupled with Apple's increasingly sluggish innovation in recent years, investors have become increasingly aware that the growth of Apple supply chain companies is simply a function of Apple's new product sales multiplied by market share, lacking a rationale for independent growth. If Apple's innovation slows (as seen with the iPhone's slowdown for several generations), the valuations of Apple supply chain companies will immediately come under pressure. This situation raises the question: Can domestic contract manufacturers survive without Apple? Or are there more promising options? The beginning of transformation: Luxshare Precision's collaboration with OpenAI is just a microcosm of the broader transformation of Apple supply chain companies. In recent years, every Apple supply chain company with a modicum of strength has been desperately seeking new paths forward. Luxshare Precision's transformation over the past few years can be considered one of the most successful examples. Overall, Luxshare Precision's revenue growth is fastest from its new energy vehicle business. Luxshare Precision primarily manufactures wiring harnesses, connectors, charging components, and smart cockpit electronic modules for new energy vehicles—critical components that safely and efficiently connect electricity, signals, and data within the vehicle. Currently, new energy vehicle revenue accounts for 39.47% of Luxshare Precision's revenue, reaching 4.998 billion yuan. The company boasts a formidable automotive client list, including Tesla, CATL, BMW, Mercedes-Benz, and Volkswagen. Goertek has taken a different approach, placing its bets on the VR/AR market. In 2020, Goertek signed an exclusive contract with Meta's Oculus for its next-generation products, securing an order. In 2022, Goertek's smart hardware business, including AR/VR products, accounted for 60% of its revenue, surpassing its acoustic device business for two consecutive years, with revenue increasing by over 90% year-on-year. The most thorough and successful transformation has undoubtedly been achieved by Foxconn Industrial Internet. This company, which was born out of Foxconn, has now transformed itself into the absolute leader in AI server manufacturing. In the first half of 2024, Foxconn Industrial Internet's net profit reached 12.113 billion yuan, a year-on-year increase of 38.6%. More importantly, through cloud computing business, Foxconn Industrial Internet's revenue exceeded the communications and mobile network equipment business for the first time, becoming a new revenue pillar. On the technical level, Foxconn Industrial Internet is also quite capable. The superfluid liquid cooling solution jointly developed by the company and NVIDIA can meet the heat dissipation requirements of the 1200W power consumption of the Blackwell chip. From product design, key components to system delivery, Foxconn Industrial Internet has established a complete AI server industry chain capability. Xinwangda, which used to make batteries for Apple, has also vigorously transformed into the new energy track in recent years and has become a battery supplier for car companies such as Weilai, Xiaopeng, and Dongfeng. At present, these three companies account for 72% of its installed capacity in 2023. More crucially, Wei, Xiaoli, and Li Auto directly invested in Xinwangda, establishing a deep "customer + shareholder" relationship. Xinwangda achieved this not through storytelling, but through proven performance—244Wh/kg energy density, 50,000 cycle life, and reliable operation at -30°C—to carve out a niche for itself amidst the competition from CATL and BYD. Looking at the transformation cases of these Apple supply chain companies, it's easy to spot a common thread: they've all moved beyond simple contract manufacturers and have begun penetrating into new sectors like new energy vehicles and AI servers. The logic behind this is simple. While manufacturing is an industry that emphasizes standards, leading companies in each niche market possess their own unique "processes." When these processes reach peak performance, they transcend mere "cheap labor" and expand across a wide range of related industries, becoming essential "solutions" for the industry. The "real gold" forged in contract manufacturing: When it comes to the unique "processes" honed through contract manufacturing, Foxconn Industrial Internet is a prime example. In the AI ​​era, Foxconn Industrial Internet (FII) provides far more than just hardware assembly. It offers a one-stop solution encompassing design, R&D, manufacturing, and even advanced thermal technologies like liquid cooling. As early as 2015, FII partnered with Alibaba to develop immersion liquid cooling (also known as "immersion cooling") products. Their fourth-generation AI servers currently utilize both water and air cooling technologies. The immersion cabinets achieve a Power Use Effectiveness (PUE) of 1.03, with values ​​closer to 1 indicating higher efficiency. Traditional air-cooled data centers typically achieve PUEs above 1.5. By 2023, FII's AI server shipments will account for nearly 40% of global shipments, placing it firmly in the top tier internationally for liquid-cooled models. This integrated capability, from design, manufacturing, to delivery, is unmatched by many pure liquid cooling technology companies, such as GRC in the US and Submer in the UK. At this point, some may wonder: How did these Apple supply chain companies make the leap from making mobile phone parts to manufacturing cars and AI servers? Can technology be easily swapped? The answer is not necessarily true. There's a very interesting logic behind this "technology transfer." Let's first discuss the core: precision manufacturing technology. Take Luxshare Precision, for example. They originally made connectors—those small parts that plug into mobile phones. Don't underestimate these things; they involve a lot of skills: micron-level precision, guaranteed to last tens of thousands of plug-in and unplug cycles, high and low temperature resistance, and electromagnetic interference resistance... These skills all embody the essence of "precision." But think about it another way: don't the charging ports and battery connectors in new energy vehicles face the same demands? In fact, the requirements are even higher—car connectors are expected to last for over a decade, while mobile phones only last three to five years at most. So, Luxshare Precision's entry into the automotive market is essentially upgrading its "mobile phone-grade" precision manufacturing technology to "automotive-grade" levels. The technical path is the same, only the standards are more stringent. The example of Foxconn Industrial Internet is even more interesting. As we all know, iPhones are getting thinner and thinner, but their processors are getting more powerful. This poses a major problem: heat dissipation. How can heat be efficiently dissipated in such a small space? To address this issue, Foxconn Industrial Internet (FII) has invested heavily in researching various heat dissipation technologies: thermal conductive materials, heat dissipation structure design, and heat pipe technology. In the AI ​​era, AI servers have far greater cooling requirements than iPhones. Nvidia's H100 chip consumes 700W of power, and the new Blackwell chip reaches 1200W. This is equivalent to the heat generated by hundreds of iPhones concentrated in a single tiny chip. However, the technical principles are the same: the goal is to quickly transfer heat away from the source. FII's accumulated experience in thermal conductive material formulations, heat dissipation structure design, and even its understanding of air flow can all be utilized. The only difference is the upgrade from milliwatts to kilowatts, and from air cooling to liquid cooling. Furthermore, Apple's notoriously stringent product quality standards—"zero defects" and "full traceability"—have long been fundamental to Apple supply chain companies. The quality management system developed as a result has become their key strength. Therefore, the core reason for these Apple supply chain companies' successful transformation lies not in their mastery of specific product manufacturing technologies, but rather a universal "precision manufacturing methodology." This is the true value earned day after day on the production line. While Apple supply chain companies have partially transitioned from manufacturing to intelligent manufacturing, leveraging the skills and knowledge accumulated through their previous contract manufacturing experience, simply "breaking away from Apple" is only the first step to survival. The real path forward lies in finding a new role. If these companies simply focus on switching major clients (e.g., from Apple to Tesla), they're still stuck in their old ways and will never be able to achieve independence. Furthermore, given the current Sino-US tensions, this structure, where all major clients are from mainland China, is inherently fraught with uncertainty. Therefore, the true potential for these former Apple supply chain companies lies in transitioning from "OEM parts" to "system definition." In the Apple era, Apple supply chain companies were "hanging on a single phone." But in today's increasingly important era of AI, manufacturing needs are fragmented: there are startups developing AI glasses, laboratories developing humanoid robots, and local governments building edge data centers... They all require reliable, flexible manufacturing partners capable of small batches and rapid iteration. If Apple supply chain companies can package the entire suite of capabilities they used to serve Apple—supply chain, quality control, and automation—into "Manufacturing as a Service" (MaaS), they could become the "water, electricity, and gas" for AI hardware innovation. Just as TSMC doesn't make phones, but its chip manufacturing underpins the entire semiconductor ecosystem, future Apple supply chain leaders may not make cars or robots, but all AI hardware will be inseparable from it. This "Manufacturing as a Service" model bears a strong resemblance to the traditional SaaS model. SaaS, standing for "Software as a Service," literally translates to "software as a service." Think of the apps on your phone. Take Didi Chuxing: In the past, hailing a ride meant either manually hailing one on the street or calling a taxi company. Now, just open your phone and tap it. In the past, if you wanted takeout, you had to call the restaurant for delivery. Now, if you want Sichuan cuisine or hot pot, you can just open Meituan and order it with a few taps. "Manufacturing as a Service" (MaaS) simply means transforming complex "factory management" into a simple, easy-to-use program like a mobile app. This transforms Apple supply chain companies from "OEMs" into "intelligent manufacturing service providers." They're no longer simply selling physical labor; they're creating an "industrial Meituan Takeout"—allowing any business to access world-class manufacturing services anytime, anywhere, just like ordering takeout. Moreover, this concept is no longer just wishful thinking; it's already being demonstrated in real-world cases. A prime example is Foxconn's "MIH Electric Vehicle Open Platform." MIH (Mobility in Harmony) is Foxconn's open ecosystem for electric vehicles, encompassing "hardware, software, and supply chain," launched in 2020. Its core logic is simple: "You have a brand, algorithms, and users, but can't build a car? No problem. We'll provide you with the chassis, three-electric system, electronic architecture, supply chain, and even help you find a contract manufacturer—all you have to do is define the product." This essentially packages Foxconn's decades of experience serving Apple, Dell, and Cisco, encompassing vehicle-level integration capabilities, global supply chains, automated production lines, and quality control systems, into a single "electric vehicle manufacturing operating system." Currently, over 1,900 companies have joined the MIH Alliance, including Qualcomm, Nvidia, Arm, and CATL. Even Fisker in the United States and Thailand's national electric vehicle program are using this platform to develop models. In the AI ​​era, if these Apple supply chain companies leverage the data and knowledge they've amassed over the years into various "industrial apps," a single process solution could simultaneously serve thousands of factories; new process optimizations could be distributed to all customers via "cloud updates"; and every factory's production data could be used to train AI models, optimizing process standards across the industry. This allows contract manufacturers to leap from the bottom of the value chain to the top, transforming from "contract manufacturers" into "intelligent manufacturing platforms." They then hold onto these software-based patents and reverse-license them to brands, collecting platform and patent fees. Some might argue that with the widespread adoption of robots and automated factories, China's demographic dividend and cheap labor advantages will eventually disappear. At that point, AI and automation will gradually close the global manufacturing gap. However, this idea of ​​relying on "automation" to conquer the world clearly underestimates the complexity of manufacturing. The reason is that while manual labor can be replaced by machines, valuable knowledge and experience are the industry's treasures, which even AI cannot replace. Manufacturing is indeed an industry that values ​​standards, but these are "customer-given standards," not "standards of how they are achieved." Apple's requirements for its Chinese contract manufacturers are indeed clear: "Total earphone thickness 5.3mm, ±0.05mm tolerance, IPX4 waterproof rating, Bluetooth latency <80ms..." But the question is, how can you actually manufacture products that meet these requirements? The answer is: it all depends on the contract manufacturers' own "trial and error," assembling and understanding. This is called industry know-how—without decades of deep industry experience, you simply can't master it. This knowledge is ingrained in the minds of veterans, hidden in process documentation, and etched into equipment specifications. And this is precisely the greatest asset that Chinese companies have in becoming "intelligent manufacturing platforms" in the AI ​​era. The laws of nature are clear, and change is inevitable. In this era of great change, only those companies that can turn "crisis" into "opportunity" will be able to buck the trend. Luxshare Precision has gone from being an Apple component supplier to a partner of OpenAI; Foxconn Industrial Internet has gone from being an iPhone OEM to a leading AI server manufacturer; Goertek has gone from being a traditional acoustic component manufacturer to a major player in the VR/AR field... Ten years ago, without Apple, China's OEMs would have been in mourning. But now, even without Apple, China's OEMs are on their own growth trajectory.

1. Overnight Transformation: The October autumn breeze brought not a cool breeze but a biting chill to the global electronics industry. On October 8th, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) struck another blow, adding 26 entities and three addresses to the "Entity List," including 16 Chinese companies and three Hong Kong addresses. The U.S. also reiterated the "50% rule" applicable to the Entity List: any foreign entity directly or indirectly, individually or in aggregate, holding 50% or more of the listed entities will automatically be subject to the same licensing requirements as the listed entities.   The official reason cited "suspected diversion of U.S.-made components into specific drone supply chains." The separate inclusion of the three Hong Kong addresses on the list means that any transactions involving items covered by the EAR for entities registered or operating at these addresses will automatically trigger a "presumption of denial" review. This "address control" model bypasses circumvention tactics such as company name changes and enables permanent monitoring of cross-border trade nodes, signaling that the tech war has escalated from targeting specific companies to a systematic blockade of the entire industrial ecosystem. Note: Under EAR 744, any materials containing more than 25% US technology (not just chips, but also connectors, resistors, capacitors, and inductors) exported to Arrow's China/Hong Kong entities must first apply for an Individual Validated License (IVL). BIS adopts a presumption of denial policy for "Hong Kong addresses," effectively rejecting them by default. Experience shows that IVL approvals take an average of 75 calendar days, with a rejection rate exceeding 60%. Once rejected, the entire shipment must be rerouted or returned, significantly increasing logistics, warehousing, and capital costs by 8–12%. The three Hong Kong, China addresses listed are: 1614C, Hung Shui Kiu Main Street, Yuen Long, N.T., Hong Kong; 17Rm. 1605A, Ho King Commercial Center, 2-16 Fa Yuen Street, Mong Kok, Kowloon, Hong Kong; and 18Room 1605, Ho King Commercial Center, 2-16 Fa Yuen Street, Mong Kok, Kowloon, Hong Kong. Almost simultaneously, news arrived from the Netherlands that Nexperia, a subsidiary of Chinese semiconductor giant Wingtech Technology, had its assets frozen by a local court. This seemingly commercial dispute, however, reveals an increasingly intense geopolitical dynamic. Wingtech stated that China's previously implemented export control measures on rare earth-related items and technologies have already taken effect, and are viewed by the industry as a precise "reciprocal countermeasure" to its technological crackdown. Arrow, Nexperia, TI, NXP, ST... these once recognizable names in the Chinese market have now been thrust into the center of the storm. A massive wave, whipped up by political forces, is relentlessly slamming the global semiconductor division of labor built over the past three decades. As the tide recedes, we are stunned to discover that these giants, once adorned in the glittering "globalization" of their swim trunks, are now facing an unprecedented predicament of "swimming naked."   2. Arrow's "Shutdown"—The Instant Freeze of the World's Largest "Spot Reservoir" To understand the impact of Arrow's sanctions, we must first understand its role in the supply chain. It is no ordinary trader. As a top-four global electronic component distributor, Arrow serves as a "super hub" and "spot reservoir" connecting original equipment manufacturers with tens of thousands of end customers. With revenue reaching $28 billion (approximately RMB 203 billion) in fiscal year 2024, Arrow Electronics has been deeply rooted in the Chinese market for over 20 years. It represents products from over 200 international OEMs, including TI, ADI, NXP, ST, Infineon, Microchip, and Qualcomm, serving over 12,000 end customers. It's safe to say that any even slightly complex electronic product around you likely has its core components directly or indirectly sourced from Arrow's warehouses. This inclusion on the list is by no means an isolated incident; it signals a shift in US export control strategy from targeting end manufacturers to blocking the distribution chain. This will trigger a chain reaction in areas such as high-end manufacturing and supply chain management, and short-term pain is inevitable. The BIS ban is tantamount to abruptly shutting off the world's largest and most critical spot market. Arrow Asia Pacific accounts for approximately 18% of the circulating supply in China's distribution spot market, holding the largest inventory depths for core products such as TI, ADI, Xilinx, and Microchip. Regulations stipulate that the grace period will only last until November 7th. From now on, any materials subject to the US Export Administration Regulations (EAR) that attempt to be shipped through Arrow China/Hong Kong will be subject to a "default denial" licensing policy. This means it's not a matter of cost or delivery time, but rather a direct, legal severance of distribution. The impact is immediate and comprehensive: power management chips bear the brunt. As the largest component of Arrow's inventory, once their "reservoir" function ceases, demand-driven sectors like drones, automotive, and industrial sensors will be the first to feel the pain of supply disruptions. Certification cycles can last over six months, leading to a potentially frantic "daily price fluctuations" after the grace period. The battle for precision analog chips continues: op amps, ADCs/DACs, and other components face extremely high US technology barriers, and industrial customers' demanding performance makes replacements incredibly difficult. "A drift of a few tenths of a millivolt can devastate overall device performance," making the shortage of these chips a long, arduous process that will plague the entire industry chain. "Small Logic" Triggers "Major Line Shutdowns": Logic and interface chips may seem ordinary, but Arrow's "small particle" slicing services (1k/3k small packages) are the lifeblood of countless small and medium-sized customers. If supply is interrupted, these customers' production lines will be completely shut down due to the lack of a few chips worth only a few yuan, posing an extremely high risk. RF and MCUs: From Premium to Out-of-Stock: Due to certification lock-ins, RF chips face a replacement cycle of up to 9 months, causing prices to "jump." Microcontrollers are even worse off. With automotive and industrial specifications requiring lead times exceeding 26 weeks, Arrow's share of over 30% of domestic spot inventory has instantly dropped to zero. This results not in price increases but in a direct lack of demand, forcing customers to redesign boards and delay projects.   End-User Alternative Paths and Cost Estimation 1. Short-Term (0-3 Months): Utilizing "whitelisted" distributors such as Avnet, WT, and WPG is expected to result in a 2-4 week extension in delivery times and a 3-6% increase in procurement costs. 2. Medium-term (3–12 months): For highly dependent parts from TI/ADI, implement a "direct purchase + VMI" model—sign a CPPA with the original manufacturer, and have the manufacturer ship directly to the bonded warehouse. This can save 4–7% in intermediate costs, but requires a rolling 12-month forecast accuracy of ≥85%. 3. Long-term (>12 months): For irreplaceable materials with "25% US technology," such as Xilinx military-grade and TI aerospace-grade parts, initiate a "Design-Out" program and evaluate domestic brands such as Microchip PolarFire, Gaoyun, and Anlu. This is expected to increase BOM costs by 6–10%, but will completely eliminate licensing risks. Arrow's "blacklisting" is a precise "pull-out" move. It tells us that in today's highly globalized world, if any key node in the supply chain is disrupted by political influence, the chain reaction will be catastrophic. 3. Nexperia's "Freeze" – A "Crisis of Confidence" in China's Overseas Investment Model. If the Arrow incident was a frontal attack by the United States on a supply chain hub, then the freeze of Nexperia's assets in the Netherlands represents a more complex flanking attack. Nexperia, formerly the standard products division of Philips and NXP, is a leading global manufacturer of discrete devices, logic chips, and MOSFET devices. Its acquisition by Chinese-owned Wingtech Technology marked a successful "snake swallowing an elephant" acquisition by a Chinese company in the global semiconductor industry and is considered a model for Chinese capital integrating advanced international technology. However, this asset freeze (although stemming from a dispute over a final payment for a commercial acquisition) is situated within an extremely sensitive geopolitical context. With European and American countries tightening scrutiny of foreign investment, particularly Chinese investment in high-tech sectors, any technology company with ties to Chinese capital is vulnerable to becoming embroiled in political turmoil. The Anshi incident sends a dangerous signal: Even if you complete an acquisition through legal and compliant market practices, even if you operate legally in the local market, contributing taxes and creating jobs, you may still face unpredictable, non-commercial risks due to your "Chinese capital" background. Wingtech Statement This crisis isn't just for Anshi; it serves as a wake-up call for all Chinese companies attempting to upgrade their technology through global mergers and acquisitions. It shakes the foundations of the "Chinese capital going global" model—trust and legal safeguards. When business rules can be arbitrarily distorted by political will, the very foundation of global capital and technology flows begins to erode.   IV. Export Countermeasures: A Cognitive Approach to "Weaponized Dependence" and a Game of Threats. Faced with rounds of technological blockades, China isn't simply passively responding. The previously announced and implemented export controls on rare earth-related items and technologies are a well-considered "reciprocal countermeasure." These two metals are critical raw materials for the production of advanced semiconductors, radar, optoelectronic equipment, and other equipment, and China holds an overwhelmingly dominant position in the global supply. The significance of this countermeasure goes far beyond the short-term impact on specific industries. This clearly demonstrates to the world that the weaponization of supply chains is a double-edged sword, and dependence is mutual. You can cut off my access to high-end chips, and I can similarly affect your access to critical raw materials. This is the logic of "mutually assured destruction" playing out in the tech war. It forces all parties involved to reassess the true costs of "decoupling" or "de-risking." For economies like Europe, Japan, and South Korea, which are also deeply dependent on China's raw material supply, this is undoubtedly a sobering reminder: when choosing sides, they must weigh the vulnerabilities of their own supply chains.   V. "Swimming Naked" Across the Board: The Crisis of TI, NXP, and STMicroelectronics in Their Prosperous Times. When the storm sweeps in, the first to feel the biting chill may be the once-proud chip OEM giants. Texas Instruments, NXP, STMicroelectronics, Analog Devices... These names represent the crown jewels of the global semiconductor industry. They are deeply embedded in the Chinese market, deriving a significant portion of their revenue from this world's largest and most dynamic electronics manufacturing hub. Top distributors like Arrow are the capillaries that connect them to China's vast customer base. Today, capillaries are being severed one by one. "De-risking" has become "de-revenueing": "De-risking," a political slogan, is evolving into "de-marketing" and "de-revenueing" in business practice. Without orders from Chinese customers, how will these giants maintain their impressive financial reports? How can they sustain their high R&D investments? The rapid rise of alternatives: Sanctions and supply cuts have become the best "advertisement" and "catalyst" for Chinese chip companies. In the past, convincing a customer to use domestic chips might have required years of verification and relationship building. Now, customers are proactively seeking them out, willing to give domestic chips a chance and even collaborate on R&D. This is fostering the most formidable competitors of the future for companies like TI, NXP, and ST. A "Berlin Wall" in the supply chain: An invisible "technological Berlin Wall" is being erected. On one side is the "inside wall" supply chain based on the US technology system, while on the other is the "outside wall" market, which is excluded. Giants are forced to engage in "split personality" and design two or even multiple solutions. This significantly increases operating costs, reduces efficiency, and ultimately undermines global technological progress. They are "swimming naked." As the tide of global cooperation recedes, what they reveal is their over-reliance on a single political force and their inability to adapt to distorted market dynamics. They are both tools of pressure and victims of this game.   VI. Where does the future lie? — The Long March toward Independent Development and the Reshaping of Global Supply Chains. This unprecedented storm has clearly charted the course for the future. Domestic substitution has evolved from an "option" to a "must-have." There can be no more reliance on chance. From power management and analog chips to MCUs, a top-down wave of domestic substitution, driven by market panic and policy, has begun. This path is destined to be difficult, requiring time, patience, and sustained investment, but there is no turning back. Supply chains are evolving from "globalization" to "multipolarization." In one world, two or even more systems may coexist. In addition to the "traditional" systems of Europe and the United States, a China-led supply chain system and other regional supply chain alliances may gradually emerge. Enterprises must be able to survive and operate within multiple systems. "Security" will become a core factor alongside "performance" and "cost." Future product designs must consider supply chain security and resilience from the outset. "De-Americanization" and "De-C" (De-Sinicization) will become design principles for products from different product camps.   Conclusion: Say goodbye to illusions and prepare for the long march. Arrow's blacklisting, Nexperia's freeze, and export countermeasures... This series of events is not an isolated incident, but a turning point in an era. It heralds the end of the old era of warm and affectionate globalization based on "comparative advantage" and "market dominance." We are entering a "new normal" where geopolitics deeply interferes with the industrial chain. In this new normal, no one can remain immune: TI, NXP, ST, Nexperia, and Arrow. For the Chinese technology industry, this is a cruel "coming-of-age ceremony." It shatters our last illusions, forcing us to abandon shortcuts and face the core, fundamental technological innovation. The storm has arrived, and the only way is to get involved. Those who swim naked will eventually leave, while the true pioneers are now building their own boats. The clarion call of the chip war has sounded, and the long march towards independence has just begun.

The unprecedented surge in demand for artificial intelligence has led to upstream chip manufacturers prioritizing production capacity allocation to data centers, resulting in unstable supply of PC related CPUs and GPUs. Some manufacturers believe that this situation may continue at least until the first quarter of 2026, PC、 The operation of board manufacturers continues to be under pressure. Acer Chairman Chen Junsheng admitted that he is currently experiencing a shortage of CPUs and memory. Both Intel and AMD are included. It should be said that they may not have every chip we need, or their supply may not be sufficient. CPU prices have not increased, it is purely a matter of supply quantity. Chen Junsheng said, "It's just that there's no supply. Both sides are currently working hard to coordinate, but there's no sign of relief in the short term." Despite the tight upstream supply chain, Acer still believes that its PC business will perform better in the second half of the year than in the first half, mainly due to seasonal effects and weakened consumer confidence. Chen Junsheng explained that the shipment in the third quarter is to prepare for the sales in the fourth quarter, and "the peak season is the third quarter" is the norm in the industry. He pointed out that at the beginning of the year, the market focused on the performance in the first and second half of the year, and now it is confirmed that the performance in the second half of the year is better. He also pointed out that this wave of growth mainly comes from seasonal effects, rather than factors such as delayed or advanced orders. Lin Kunde, Deputy General Manager of Yingtai, a board manufacturer, pointed out that AMD and Intel are directing their production capacity towards data centers, especially since over 70% of AMD's revenue comes from this business, which has led to unstable supply of PC chips and a vicious cycle of over ordering by board manufacturers. This has also caused Yingtai's revenue to decrease by about 36.5% in the first eight months of this year. It is estimated that the annual decline will remain within this range, and there will not be much improvement in the fourth quarter. However, PC factories that also operate data center related businesses have not been significantly affected by the shortage of chip supply. On the Asus side, with the shipment of GB200 and B200 series, the proportion of AI server revenue in the second quarter has exceeded 15%, and it is expected to deliver large orders of GB300 and B300 to multiple global cloud service providers by the end of the third quarter. It is expected that the proportion of AI servers will remain at or even exceed 15% in the third and fourth quarters. The company expects a quarterly increase of 5% to 10% in PC product revenue for the third quarter, with confidence in maintaining a full year profit margin of 4% to 5%. Gigabyte benefits from its partnership with AI infrastructure provider Nebius and its acquisition of a cooperation agreement for Microsoft's dedicated GPU infrastructure for data centers. According to institutional reports, Gigabyte is expected to ship GB200 server cabinets to Nebius in the first half of 2025 and GB300 server cabinets later this year until the first half of 2026, with AI server orders adding strong momentum to operations.

TSMC's 2025-2026 Customer Ranking List: The global semiconductor AI application competition is intensifying, and the company estimates that TSMC's 2026 major customer ranking will be reshuffled. Key driver: Broadcom collaborates with OpenAI; Intel partners with Nvidia, outsourcing TSMC orders increase. Apple maintains its core position and is estimated to be TSMC's largest customer by 2024, contributing NT $624.3 billion in revenue (22% of the total). It also guarantees over half of TSMC's 2 nanometer production capacity by 2026, and has taken over all of Baoshan's first 2 nanometer production capacity. Its products may use TSMC's WMCM packaging technology, continuing to be the most advanced and largest user in terms of production capacity. Estimated ranking by revenue share in 2025: Apple (25% -27%), Nvidia (11%), MediaTek (9%), Qualcomm (8%), AMD AMD AMD (7%), Broadcom (7%), Intel (6%). Estimated rankings for 2026: Apple (22% -25%) remains at the top, Broadcom (11% -15%) jumps from sixth to second, and Nvidia (11%) drops to third; Intel's market share is expected to catch up with Qualcomm and AMD AMD (7%). In addition, American customers have strong demand for advanced processes, urging TSMC to expand production at its new factory in the United States. TSMC plans to build multiple wafer fabs in the United States, with overseas production capacity accounting for 20% by 2028 and a ratio of approximately 7:3 between Taiwan and the United States for processes below 2 nanometers by 2030, in order to meet customers' needs for off-site backup. TSMC has never commented on individual customer messages.

On September 22nd, Nvidia and OpenAI announced a partnership that includes plans to build a massive data center and Nvidia's largest investment commitment to OpenAI, up to $100 billion (approximately 711.5 billion yuan). According to the agreement, OpenAI will utilize Nvidia systems to build and deploy at least 10 gigawatts of AI data centers for training and running next-generation models. 10 gigawatts is equivalent to 4 to 5 million graphics processing units (GPUs), which is roughly equal to Nvidia's total shipments this year and twice as much as last year. This is a massive project, "Nvidia CEO Renxun Huang, OpenAI CEO Altman, and President Brockman said in an interview. Both parties stated that Nvidia will gradually invest with the launch of each gigawatt data center, with the first phase expected to be launched in the second half of 2026, based on Nvidia's Vera Rubin platform. The details of the cooperation will be finalized in the coming weeks. OpenAI currently has over 700 million weekly active users, and its ChatGPT service requires massive computing power support. OpenAI CEO Sam Altman stated in a statement, "It all starts with computing power. Computing infrastructure will become the foundation of the future economy, and we will leverage the technology system we have built together with NVIDIA to achieve new breakthroughs in the field of artificial intelligence on one hand, and empower individuals and businesses with these technologies on a large scale on the other." This investment has significant strategic implications for NVIDIA. Bryn Talkington, Managing Partner of Requisite Capital Management, told the media: "Nvidia investing $100 billion in OpenAI, and then OpenAI returning the money to Nvidia, will be a very virtuous cycle for Huang Renxun. This collaboration will help Nvidia ensure that its devices remain at the core of AI system construction, especially in the context of OpenAI's foray into the hardware field, including self-developed chips. Maintaining OpenAI as a major client may help Nvidia consolidate its market position when considering competitor components in the industry. However, some people have raised concerns about this collaboration, believing that it may harm the competitive landscape of the industry. Andre Barlow, an antitrust lawyer at Doyle, Barlow&Mazard law firm, pointed out that this collaboration may bundle Nvidia's monopoly advantage in the chip field with OpenAI's leading position in software, making it more difficult for Nvidia's competitors in the chip field (such as AMD) or OpenAI's competitors in the large model field to scale up. Recently, Nvidia has frequently invested in industry related companies. Last week, Nvidia announced a $5 billion investment in Intel and will collaborate with them to develop chips. In addition, Nvidia has invested approximately $700 million in UK data center startup Nscale to build a UK version of Stargate, enhancing the country's autonomous computing capabilities.

French market research company Yole Group released its latest report on the global automotive semiconductor market on July 31, 2025. The report shows that the size of the automotive semiconductor market will reach 68 billion US dollars in 2024, with Infineon Technologies (hereinafter referred to as "Infineon") leading the way.    The compound annual growth rate in 2030 will reach 12%, reaching 132 billion US dollars     The report predicts that the global automotive semiconductor market will grow at a compound annual growth rate of 12% from 2024 to 2030, reaching $132 billion by 2030. It is expected that the price of semiconductor devices per vehicle will increase from approximately $759 in 2024 to approximately $1332 in 2030, and the installation quantity per vehicle is expected to increase from approximately 824 units in 2024 to approximately 1158 units in 2030. 2024 and 2030 Automotive Semiconductor Market Source: Yole Group Yole listed three 'structural factors' that support this growth. One reason is the increasing adoption of power electronic devices, especially wide bandgap (WBG) semiconductor switches, due to electrification. Another issue is that the Euro NCAP 2026 agreement, mandatory requirements for Automatic Emergency Braking (AEB) in the United States, and upgrades to China's C-NCAP (China New Car Assessment Program) will result in the addition of cameras, radars, and domain controllers to all vehicle models (including entry-level models). Finally, the development of E/E (electrical/electronic) architecture will lead to a shift towards centralized systems and a shift towards 48V power supply systems, which will require advanced MCUs and a new set of PMICs in the coming years. Although the growth of battery electric vehicles (BEVs) is slowing down in all major markets (partly due to revised emission regulations in Europe encouraging car manufacturers to expand the scale of BEVs), Yole expects dual motor plug-in hybrid vehicles (PHEVs) to be promoted globally starting from China. Yole expects that dual motor plug-in hybrid electric vehicles (PHEVs) will be promoted globally in the future, starting with China. The company predicts that the average growth rate of PHEVs will reach 19% between 2024 and 2030, while the growth rate of BEVs will only be 14%. The company also explained the recent rapid decline in prices of N-type silicon carbide substrates, stating that the price drop is expanding the application of silicon carbide (SiC) MOSFETs in inverters: not only BEVs, but also PHEVs equipped with large capacity batteries are using SiC combined with an 800 V platform for fast charging. Yole also pointed out that "as global manufacturers catch up, the dominant position of Chinese automakers will shrink. Yole added, "Artificial intelligence is changing all industries, including the automotive industry, without exception. Multimodal interfaces, end-to-end, and visual language action (VLA) models for advanced driver assistance systems (ADAS) are among the first applications, and the use of artificial intelligence in more areas such as development, manufacturing, marketing, and aftermarket is becoming increasingly widespread. ”The report also points out that the application of artificial intelligence in more fields such as development, manufacturing, marketing, and after-sales markets is becoming increasingly widespread.     The top five companies in the 02 ranking account for about half of the total     According to the 2024 ranking of the automotive semiconductor market, the leader Infineon dominates the silicon (Si) and SiC power module, driver, and MCU fields, with sales exceeding $8 billion and a market share of 12%. NXP Semiconductor (NXP) ranks second and has advantages in automotive network MCUs, radars, and transceivers, with a market share of 10%. STMicroelectronics (ST), ranked third, holds a 9% market share. Yole explained that STMicroelectronics' goal is long-term growth and maintaining its dominant position in the discrete, electrification, and MCU platforms. ” According to Yole's report, the ranking is closely followed by Texas Instruments (TI) in fourth place and Renesas Electronics in fifth place. Yole stated that these five companies account for approximately 50% of the automotive semiconductor market, but also emphasized that "new challengers are rapidly expanding". Top 10 Participants in the Automotive Semiconductor Market in 2024 Source: Yole Group China suggests that car manufacturers increase the localization rate of automotive components to 25% by 2025, and Yole explains that "the face of the automotive industry is already changing. Chinese semiconductor manufacturer Horizon Robotics SiEngine、 Black sesame is used in cockpits and ADAS, while BYD Semiconductor and StarPower have been adopted by domestic automakers in some Si IGBT and SiC MOSFET fields. Even with vertical integration by car manufacturers, NIO has produced its own 1000 TOPS domain controller using TSMC's 5nm process. BYD also combines its own MCU and SiC MOSFET with its own battery pack. Yole said, "Not only these examples, but several other car manufacturers are also taking similar paths." In terms of production capacity, SMIC is building four 12 inch factories with 28nm/40nm nodes that can process about 100000 wafers per month. Undoubtedly, China's advantages lie in its domestic policies, expanded manufacturing capabilities, and agile vertical integration, "Yole said. On the other hand, in the field of 16nm and below processes, it is said that there is competition between TSMC and Samsung's two foundries. TSMC's N5A and Samsung's SF5A are currently the most advanced processes that comply with the AEC-Q100 standard, "Yole explained. Regarding this, capacity allocation has become the axis of competition. Yole stated that "Nvidia's' Thor ', Qualcomm's' Snapdragon Ride', and Mobileye's' EyeQ7 'have ensured the majority of production capacity for products using 5nm technology by 2027. Yole also mentioned in the report that American companies hold a 36% market share. The main areas are simulation, memory, and high-end SoC (System on Chip) solutions. Yole stated that "Nvidia, AMD, and Qualcomm are introducing AI computing to the automotive edge, and future growth will depend on SoC penetration in advanced driver assistance systems (ADAS), autonomous driving, and cockpit computing. ”Regarding Japanese companies, Pierrick Boulay, Chief Analyst of Yole Automotive Semiconductors, explained, "In Japan, apart from Renesas, ROHM and Denso have maintained a strong position in the traditional MCU, sensor, and silicon carbide power device fields. ROHM and Denso are growing in the SiC MOSFET used in electric vehicle inverters

Silver Lake Capital completes acquisition of 51% equity in Altera   Altera, the global leader in FPGA innovation technology, announced that global technology investment giant Silver Lake Capital has completed the acquisition of a 51% stake in Altera, which was previously held by Intel Corporation. At the same time, Intel will retain 49% of Altera's equity, which also demonstrates the confidence of both parties in Altera's future development. The completion of this transaction signifies that Altera has become the world's largest and independent FPGA focused solution provider. By providing the software tools, development kits, IP, and design service resources needed to build a complete FPGA solution, Altera will help customers and partners accelerate innovation. Altera is committed to providing customers and developers with a full stack FPGA product portfolio that features industry-leading architecture, efficient performance, and easy-to-use and scalable software. With Agilex ™ Series products, Altera's advanced FPGA solutions make AI easier to popularize by reducing entry costs while improving performance, reliability, and security. In addition, Altera has a flexible and highly resilient supply chain by collaborating with leading process nodes and OEM partners, allowing global customers to develop products with peace of mind.   Supported by Silver Lake Capital, further enhancing leadership Thanks to operational independence and strategic support from Silver Lake, Altera will significantly enhance its flexibility and resource reserves, accelerate technological innovation, and continue to deliver leading FPGA solutions, while comprehensively enhancing its services and support to global customers and partners. With profound experience in collaborating with management teams to drive the development and transformation of industry-leading semiconductor companies, Silver Lake Capital will assist Altera in accelerating its layout in key areas such as industrial automation, audio and video, robotics, data centers, telecommunications, and edge AI.       I am delighted to collaborate with Silver Lake Capital. This far-reaching strategic investment will not only accelerate our pace of innovation, but also further enhance our leadership in the FPGA market during a critical period when AI applications continue to drive demand growth for programmable logic. In the future, we will focus on optimizing our product portfolio, fully unleashing the innovation potential and talent advantages of our organization, continuously meeting the evolving needs of our customers, and seizing the significant opportunities brought by AI. ——Raghib HussainAltera CEO   At the forefront of FPGA industry and AI evolution, Altera has always held an irreplaceable strategic position. Our investment not only demonstrates our firm confidence in its technological leadership, customer commitment, and long-term growth potential, but also represents our strong support for its future development. We are honored to be able to move forward side by side with Raghib and its outstanding team, opening this new chapter full of opportunities and challenges. ——Kenneth Hao, Chairman and Managing Partner of Silver Lake Capital

Renesas Electronics (TSE: 6723), a global semiconductor solutions provider, announced today the launch of the RAA489300/RAA489301 high-performance buck controller. This new controller adopts a three-level buck topology structure, designed specifically for battery charging and voltage regulation in USB-C systems. It is suitable for multi port USB-PD chargers, portable power supplies, PC docking stations, robots, drones, and other applications that require high-efficiency DC/DC controllers. The three-level buck converter topology used in this new IC has excellent efficiency and can significantly reduce the inductance required by the buck converter. Its innovative design can minimize power loss and reduce system size, making it an ideal choice for compact high-performance applications. Compared with traditional two-level buck converters, the three-level topology structure adds two additional switches and one flying capacitor. Flyover capacitors can reduce voltage stress on switches, allowing designers to use low-voltage FETs with better quality factors, thereby effectively reducing conduction and switching losses. In addition, this topology structure also supports the use of smaller inductors, with peak to peak ripple of about 25% of that of a two-level converter, thereby reducing inductor core and DC resistance losses. The Renesas USB-PD solution has excellent quality and safety, while also combining high efficiency and power density. As a global supplier of USB-PD solutions, Renesas offers a comprehensive product portfolio covering various applications, including turnkey solutions. With a wide range of development environments and pre certified USB-IF reference designs, we help customers shorten product time to market.   Gaurang Shah, Vice President of the Power Division at Renesas, said: "This three-level buck topology solution is a model of Renesas' outstanding position in the field of battery charging. This innovative technology includes multiple pending breakthrough patent achievements, which can bring significant advantages to our customers compared to competitors' USB-C power solutions. ” The three-level DC-DC RAA489300/RAA489301 voltage regulator has excellent thermal performance, which can reduce cooling requirements and save costs and space. This innovative approach meets the growing market demand for compact and efficient power management systems. The key features of the RAA489300/RAA489301 voltage regulator support a wide range of input and output voltages, and are suitable for integrating safety functions into battery packs and various PD adapters with different voltages; The excellent scalability of the built-in overcharge, overheat, and voltage anomaly protection mechanisms allows for easy adaptation to switch architectures optimized for different power levels and application requirements. Voltage is distributed between power switches to improve efficiency and minimize power consumption, helping to achieve greener and more sustainable designs, reduce thermal stress, enhance system reliability, and extend product life Renesas offers two successful product combinations, RTK-251-SinkCharger-240W and 240W dual port card, which can minimize the development workload required for customers to integrate USB-C battery charging function into their products. These 'successful product combinations' are based on compatible and seamlessly collaborative products, with a technically validated system architecture that brings optimized low-risk designs to accelerate product launch speed. Renesas has launched over 400 "successful product combinations" based on its product lineup, enabling customers to accelerate the design process and bring products to market faster. Renesas Power Management Technology Advantage As a globally renowned supplier of power management products, Renesas Electronics has achieved an average annual shipment volume of over 1.5 billion units in recent years. A large number of these products serve the computing industry, while the rest are widely used in industries, the Internet of Things, data centers, and communication infrastructure. Renesas has the widest portfolio of power management devices, offering unparalleled quality and efficiency, as well as exceptional battery life. Meanwhile, as a trusted supplier, Renesas has decades of experience in power management IC design, backed by a dual source production model, advanced process technology in the industry, and a vast system of over 250 ecosystem partners.

Texas Instruments' CFO revealed at an investor conference that the US equivalent tariffs did indeed drive a wave of early customer pickup earlier this year, as orders accelerated growth. However, after the tariff effect receded, the once surging demand cooled down. According to CFO Rafael Lizardi, DeYi's strong performance from January to April this year was partly due to customers placing orders before the tariffs were announced, resulting in a surge in demand. However, after that, demand cooled down. After April, the situation did indeed slow down, at least not growing as usual. Wall Street has been hoping that the analog chip industry can recover, and according to speculation, the industry's revenue has declined by about 25% from its peak. Texas Instruments' profit and revenue performance in the first two quarters of this year were better than expected, but Lizardi's remarks have raised doubts among investors about the prospects for recovery. Mike Beckman, the head of investor relations at Texas Instruments, said, "The impact of tariffs is difficult to separate because there is also a wave of recovery happening at the same time. So, how much each of these factors has played a role?" This is not the first time that Texas Instruments executives have pointed out that demand may have surged significantly. CEO Haviv Ilian said in July that it is reasonable to assume that customers with insufficient inventory may want to increase their stock due to the possibility of tariffs being imposed. (Demand) has normalized in Q2, and our current daily driving factor is mainly cyclical recovery. Texas Instruments' Q2 revenue was $4.45 billion, a year-on-year increase of 16% and a month on month increase of 9%. Q2 operating profit was $1.56 billion, a year-on-year increase of 25%, and analysts expect $1.47 billion. Expected revenue for the third quarter is between 4.45 billion and 4.8 billion US dollars, with analysts expecting 4.57 billion US dollars. Texas Instruments pointed out at the time that some customers had lower than expected demand for analog chips, and four of its five end markets were recovering. Only the automotive market was still hindered by the easing of demand rebound and broader economic uncertainty. According to Barron's Weekly analysis, Texas Instruments' current message to investors is that, apart from the automotive sector, a widespread recovery in overall demand has begun, but it will still take some time to fully grasp the full impact of tariffs. Due to the US's investment in Intel in early August and its consideration of applying this "equity for subsidy" policy to other companies, concerns have arisen about whether it will intervene in the US business world. Chief Financial Officer Rafael Lizardi responded that Texas Instruments has not discussed American investment as a condition for obtaining chip subsidies. :We have not discussed or proposed anything similar. We have also not had any contacts in this regard"

In 2024, the global MLCC market shows a steady growth trend, with a market size of approximately 100.6 billion yuan, a year-on-year increase of 5.0%. The booming development of artificial intelligence (AI) has driven the increasing demand for consumer electronic products such as servers, smartphones, and personal computers, which has put higher demands on the usage of MLCC. It is expected that the global MLCC market size will continue to steadily grow to approximately 105 billion yuan by 2025. By 2029, the market size is expected to reach 132.6 billion yuan, with a compound annual growth rate of 5.7% between 2024 and 2029, demonstrating the long-term growth potential of the market. Below we summarize the sales situation of major MLCC enterprises in China, Japan, South Korea, and the United States. The relevant data is evaluated based on the official sales data provided by 2024-2025 and is for reference only. Japanese company 1. Murata: As a leading enterprise in the MLCC industry in Japan and even globally, Murata is in a leading position in technological innovation and market share. The annual sales of various capacitors exceed 40 billion yuan, accounting for more than 50% of the total revenue. Among them, MLCC has the highest global market share, exceeding 30%. Murata, with its profound technical expertise, has started to produce industry-leading 0402 size and 47uF capacity multilayer ceramic capacitors. This product can be widely used in various civilian and high-performance IT equipment, meeting the urgent market demand for miniaturization and high-capacity MLCCs. 2. Solar induced electricity: MLCC's annual sales revenue is approximately 12 billion yuan. The MLCC business of solar induced electricity is gradually growing, and related products can be used in engine ECU and other powertrain systems, achieving a maximum temperature range of 150 ° C, meeting the strict requirements of automotive electronics for stable operation in high-temperature environments. 3. Kyocera: Kyocera has consistently maintained high R&D investment and production scale in its MLCC business. Its products are widely used in multiple fields, and with stable product quality and diversified product lines, it strives to maintain competitiveness in the global MLCC market, occupying a certain market share in communication, industrial control and other fields. TDK: The sales revenue of capacitors is around 12 billion yuan, and its MLCC products have long held an important position in the automotive market, with a market share second only to Murata, accounting for over 70% of the market share, and a higher proportion in higher-level applications. Faced with the rapid changes in the market, TDK actively adjusts its business layout, increases investment in research and development in the automotive market, continuously launches new products that meet the needs of the automotive market, and continues to consolidate its market position in areas such as automotive electronics and AI to cope with fierce industry competition and constantly changing market demands. South Korean company Samsung: Samsung Electric has performed outstandingly in the field of passive components (such as MLCC), with MLCC annual sales exceeding 10 billion yuan, especially occupying the top market share in the consumer electronics sector. Samsung has successfully achieved the micro high capacitance and high voltage resistance characteristics of MLCC through dielectric ceramic powder nano technology. Stable in the global MLCC market. Taiwan, China enterprise 1. Guoju: known as the world's third largest passive parts supplier, the annual sales of MLCC business is about 6 billion yuan. Guoju continues to increase its research and development innovation efforts, launching the embedded CE series MLCC, which can achieve high-frequency circuit integration and meet the demand for high-frequency and high-performance MLCC in emerging fields such as 5G communication and artificial intelligence. 2. Huaxin Technology: Its business is quite extensive, with annual sales of around 8.4 billion yuan, and MLCC is one of its main businesses. The company focuses on research and development investment and actively expands market share. In the fields of consumer electronics, communication, etc., Huaxin Technology's MLCC products have gained recognition from customers for their good cost-effectiveness and stable quality. VISHAY, an American company, focuses on the manufacturing of electronic components and has a unique technology and product layout in the MLCC product line. The annual sales of MLCC are around 3.5 billion yuan. VISHAY's MLCC products have excellent performance and can meet the diverse needs of different customers, and are widely used in industrial, automotive and other fields. With its global R&D and production system, the company is able to quickly respond to market changes and provide customers with high-quality products and services. Chinese Mainland enterprise 1. Fenghua: MLCC's annual sales volume is about 1.8 billion yuan to 2 billion yuan. It is an old brand enterprise and the first MLCC production line in China. Stack over 1000 layers on MLCC products, covering mainstream specifications ranging from 0201 to 2220 sizes. Fenghua High tech actively expands its market, increases research and development investment, improves production capacity and technological level, occupies an important position in the domestic MLCC market, and gradually expands into the international market. 2. Third Ring: MLCC's sales are on par with Fenghua's, and we continue to invest in research and development, committed to improving the performance and quality of MLCC products. Through continuous innovation, the products of Sanhuan Group have gradually gained widespread recognition in the market and their market share continues to expand. The company stands out in the competition of the domestic MLCC market, and its products are not only applied in consumer electronics, communication and other fields, but have also made certain breakthroughs in high-end fields such as automotive electronics. 3. Micro Rong: Through continuous investment in new production capacity, the current sales revenue is around 1.5 billion yuan, with an annual growth rate of over 20%, actively expanding in the automotive MLCC market. The production capacity of microcapacitors has increased from 500 billion pieces in 2018 to around 720 billion pieces today. After the completion of the new factory in 2025, the production capacity is expected to exceed 900 billion pieces, and the plan to reach 1.2 trillion pieces by 2030 is gradually being promoted in an orderly manner. 4. Yuyang: MLCC's annual sales are around 400 million yuan, focusing on the consumer market, especially the smartphone market. Continuously improving technological level, enriching product categories, and striving to enhance competitiveness in the MLCC market. Yuyang's products are applied in multiple fields, gradually expanding their market influence through continuous technological innovation and market expansion, and achieving certain technological advantages in miniaturization and high-capacity MLCC products. 5. Torch Electronics: Continuously cultivating in various capacitor businesses such as military and consumer industries, with annual sales of around 2.8 billion yuan. The company actively expands its market channels, enhances brand awareness and product reliability, and occupies an important position in the domestic MLCC market, especially in high-end fields such as military and aerospace, providing key electronic component support for the development of national defense and high-end manufacturing. 6. Hongyuan Electronics: Annual sales are around 1.8 billion yuan. Focusing on the research and development, production, and sales of MLCC products for military use, continuously optimizing product structure to meet different customer needs. Hongyuan Electronics has won a good reputation in the domestic market with its professional technology and high-quality services in the MLCC field, especially in the military industry where it has a high market share, providing strong support for the development of military electronic equipment in China. 7. Dali Kaipu: With annual sales of around 400 million yuan, it focuses on the research and development of RF microwave MLCC production. With unique technology and product advantages, it gradually stands out in the market. Dali Kaipu continues to improve product performance and market competitiveness, increase research and development investment in high-end MLCC products, strive to break the technological monopoly of international giants, actively layout in emerging fields such as 5G communication and new energy vehicles, and is expected to occupy a place in the global MLCC market. Major enterprises, relying on their technological advantages, market strategies, and innovation capabilities, are fiercely competing in the global market, jointly driving the continuous development of the MLCC industry to meet the growing market demand and emerging application scenarios.

In the past decade, NAND flash memory has been regarded as a star in the storage industry. Whether it is the popularization of smartphones, the trend of PC replacement, or the rise of cloud computing, NAND has played a crucial role. Its high growth has also driven a global semiconductor industry expansion boom, forming several oligopolistic patterns such as Samsung, SK Hynix, Micron, and Kaixia.             However, since 2024, the industry atmosphere has taken a sharp turn for the worse. NAND prices have experienced drastic fluctuations, putting pressure on corporate profits. Major manufacturers have coincidentally slowed down production expansion or even reduced investment, marking the arrival of a new cycle. At the same time, the rise of AI and high bandwidth memory (HBM) has gradually shifted the market's focus to the DRAM field, redefining the position of NAND in the storage industry landscape. The adjustments made by major giants in NAND research and development production indicate that this industry has shifted from "high-speed expansion" to "cautious investment", and a slow yet intense change is quietly taking place.     The slowdown and transfer of the two giants in South Korea     As a long-term dominant player in the global NAND market, Samsung has been known for its aggressive investments in the past. At this year's International Solid State Circuit Conference, Samsung announced the upcoming release of its V10 (10th generation) NAND flash memory. It is reported that Samsung's V10 NAND flash memory has over 400 active layers and an interface speed of 5.6 GT/s. It also adopts Samsung's exclusive and pioneering Hybrid Bonded Peripheral Unit (CoP) architecture. However, Samsung's V10 NAND mass production journey has not been smooth. It was originally expected to start mass production by the end of this year, but in June, there were reports in South Korea that Samsung was expected to conduct an evaluation of its supply chain composition before the second half of this year, and the actual large-scale production investment may not be carried out until the first half of next year. According to reports, as of June this year, Samsung has not yet finalized its supply chain for NAND core devices, including etching. The reason is that the market demand for high-level stacked NAND is unclear, and the cost-effectiveness issues brought by the introduction of new processes hinder investment promotion. The so-called "etching" refers to the process of removing unwanted substances on a wafer. In the past, when etching channel holes (similar to small holes), it was necessary to perform at a low temperature environment of about -20 ℃ to -30 ℃; But in V10 NAND, it is expected to require an ultra-low temperature environment of -60 ℃ to -70 ℃. The lower the temperature, the weaker the chemical reactivity, and the more precise etching can be achieved without the need for additional protective film. To this end, Samsung Electronics has introduced ultra-low temperature etching equipment from major front-end equipment manufacturers such as Lam Research in the United States and Tokyo Electric (TEL) in Japan, and conducted trial production and quality evaluation. However, the actual evaluation results show that ultra-low temperature etching technology is still difficult to directly apply to mass production. So Samsung is negotiating with Lam Research and TEL to try to conduct equipment evaluation again by increasing some etching temperatures. It is understood that the investment cost brought by the introduction of new devices is also considered one of the important reasons for Samsung's delay in investing in V10 NAND mass production. Samsung still mostly uses Lam Research's equipment in NAND etching processes. If TEL is included in the supply chain, it means diversification of equipment, but at the same time, it will face the problem of decreased usage of existing Lam Research equipment and the need to improve compatibility between the two devices. The difficult production of V10 NAND ultimately affected Samsung's plans for upgrading other production lines. According to South Korean media reports, Samsung Electronics has been promoting conversion investments in the Pingze P1 factory and Xi'an NAND factory since the beginning of this year, with the core being to shift the originally mass-produced 6th and 7th generation NAND to 8th and 9th generations. Compared to fully constructing a new production line, the cost of conversion investment is lower, and partial renovation and continued use of existing equipment result in higher efficiency. However, the conversion investment speed of the most advanced NAND is slowing down recently. Although the 8th generation NAND conversion of P1 factory is proceeding as planned, there have been reports of a delay in the investment for the 9th generation NAND conversion, which was originally scheduled to start as early as the second quarter of this year. The situation at the Xi'an factory is similar. The X1 production line, which is undergoing the 8th generation conversion, is nearing completion, while the X2 production line, which is undergoing the 9th generation conversion, only plans to invest in a monthly scale of 5000 wafers in the third quarter of this year, which is almost the minimum scale required for mass production of memory products. A semiconductor industry insider said, 'Samsung Electronics plans to continue mass producing older generation NAND such as V6 on its X2 production line before the first quarter of next year, and the true implementation of the 9th generation conversion will not take until at least the middle of next year,' explaining that 'this is because the demand for advanced NAND is still sluggish.'. However, Samsung remains cautious about investing in next-generation NAND and related technologies. It had originally considered applying hybrid bonding technology to V9 NAND on the Xi'an X2 production line, but has recently decided to put it on hold. Behind the delay in NAND technology is a lack of market confidence and a reconsideration of capital utilization. Compared to Samsung's high-intensity investment in HBM and DRAM, its conservative attitude in the NAND field is more prominent. Equally lacking in confidence is SK Hynix, which made it clear during the conference call that its NAND business will remain cautious and prioritize profitability. It is worth noting that SK Hynix completed the acquisition of Intel's NAND business this year and is currently restructuring its factory and related assets in Dalian, China. However, the facility investment for its second factory, which began construction about three years ago, is still on hold. Even before acquiring Intel's NAND business, SK Hynix had been discussing building a second factory in Dalian. In 2022, the company held a groundbreaking ceremony in Dalian and announced plans to continue expanding its 3D NAND production capacity in China. The industry initially expected SK Hynix to introduce infrastructure, including cleanrooms, according to its construction plan starting in mid-2023. However, due to geopolitical factors making it difficult to introduce advanced semiconductor manufacturing equipment into China, and the weak performance of the NAND market, the investment plan has been postponed. Korean media pointed out that SK Hynix Dalian Second Factory has not made any equipment investment in the past three years since its foundation. A semiconductor industry insider said, "Although SK Hynix has obtained the 'Certified End User (VEU)' qualification in the United States and investment restrictions in China have been relaxed, the NAND business still faces great uncertainty due to the economic downturn and the entry of newcomers from China. ”He added, "Therefore, there have been no discussions on the specific investment for the new factory in Dalian at present In fact, over the past few years, despite acquiring Intel's NAND business, SK Hynix has still been at a relative disadvantage in this field, and now the AI driven HBM demand has exploded, allowing it to rediscover its core growth points. At present, SK Hynix holds a leading position in the HBM field, almost monopolizing NVIDIA's AI acceleration card supply chain, and its profitability has significantly improved. In contrast, its V10 NAND development progress is relatively lagging behind, and the company has also focused its resources on advanced DRAM and HBM internally. This strategic shift clearly indicates that NAND is gradually being marginalized within SK Hynix and will not be the main investment direction, at least in the short term.   American strategic contraction, Japanese pressure, domestic breakthrough     Micron's actions also confirm the difficulties faced by the NAND industry. In August of this year, Micron announced that due to the continued weak financial performance of mobile NAND products in the market and the slowdown in growth compared to other NAND opportunities, Micron will cease the development of future mobile NAND products globally, including terminating the development of UFS5 (fifth generation universal flash storage). Micron pointed out that this decision only affects global mobile NAND product development work. Micron will continue to develop and support other NAND solutions, including SSD, automotive, and other terminal NAND solutions. At the same time, Micron will continue to support the mobile DRAM market and provide DRAM product combinations. Faced with profit pressure, Micron directly withdrew from competition with Samsung and SK Hynix in the consumer market. The company will shift its focus to the enterprise SSD, automotive, and data center markets, which, although not as large as smartphones, have more stable demand and higher profit margins. At the same time, Micron has significantly increased its research and development, as well as capacity building, in HBM and DRAM, in an attempt to carve out a bigger share of the pie in the AI era. According to its financial report, since the second half of 2024, Micron has continuously raised its revenue and gross profit margin guidance, resulting in significantly better market performance than its NAND business. This differentiation pattern of "NAND sluggish, DRAM strong" reflects Micron's strategy of shrinking NAND to free up resources for future AI memory. Compared to Samsung and Hynix, the situation of Armor Hero is even more difficult. As the world's third-largest NAND supplier, Kaixia has long relied on technology and production capacity cooperation with Western Digital. However, the merger between the two companies, which has been brewing for many years, has yet to materialize, making it difficult for Kaixia to achieve economies of scale that can compete with Korean giants. The lack of scale advantage means that Kaixia is in a passive position in cost control, technological iteration, and market discourse power. At the same time, the drastic fluctuations in NAND prices directly dragged down Kaixia's financial performance, causing its performance to hover on the edge of profit and loss for years. Faced with the pressure of the capital market, Kaixia needs to maintain basic R&D and production investment to maintain competitiveness, but lacks sufficient financial flexibility to promote larger scale expansion or technological upgrades, falling into the dilemma of "unable to advance and unable to retreat". On the other hand, China's Yangtze River storage has chosen to increase investment against the trend and embarked on a differentiated development path. With the support of domestic market demand, Changjiang Storage has been able to maintain its expansion momentum during the global industry's widespread "scale reduction" phase, winning a strategic window for future competition. However, from a global perspective, the NAND market is still dominated by oligopolies, with established manufacturers such as Samsung, SK Hynix, Micron, and Kaixia still firmly controlling most of their production capacity and channel resources. Even though the Yangtze River storage is rapidly catching up, it is difficult to completely shake this structure in the short term. The overall atmosphere remains cautious, with companies placing greater emphasis on risk control and capital returns in investment and expansion, awaiting the arrival of the next growth cycle with clear demand.     The 'cold wave' of equipment manufacturers     The most direct victims of the slowdown in NAND investment are undoubtedly semiconductor equipment manufacturers. In the past few years, local equipment companies in South Korea, such as SEMES (a subsidiary of Samsung), Jusung Engineering, Dongjin Semichem, etc., have relied heavily on Samsung and Hynix's expansion projects to maintain growth. Now, with the two giants delaying the mass production plans of advanced NAND projects, related equipment orders have significantly declined, and cash flow and profitability have been severely impacted. Global device giants have not been spared either. ASML's EUV lithography machines mainly serve the logic and DRAM processes, and their DUV equipment shipments are under pressure during low NAND demand; TEPCO Electronics (TEL) has a high dependence on NAND business in the fields of thin film deposition and etching, and delayed orders directly affect its performance; Applied Materials and Lam Research have felt the most obvious impact in the deposition and etching processes, especially in the demand for ALD, CVD, and high aspect ratio etching equipment for high-level NAND. This has forced both companies to lower their shipment expectations. Kokusai Electric、 Japanese companies such as Hitachi High Tech and SCREEN Semiconductor have also been hit by chain reactions. Faced with this dilemma, equipment manufacturers have to accelerate their "pivot". With the explosive demand for AI driven HBM and high-performance DRAM, as well as the continuous increase in advanced logic processes (3nm/2nm), equipment giants are gradually shifting Jusung Engineering's focus from NAND to logic chips and HBM/DRAM related devices to fill the NAND investment gap. Dongdian Electronics has repeatedly emphasized the stability of its DRAM business in its financial report, while Kelei and Applied Materials are actively promoting the layout of advanced logic and wafer level packaging equipment. At the same time, the popularization of the "conversion investment" model is also changing the industry ecology. More and more wafer fabs are choosing to purchase second-hand equipment and carry out remanufacturing or renovation to extend the service life of the equipment, in order to reduce overall capital expenditures. This trend has driven a rapid rise in the second-hand equipment market, leading to business growth for companies such as Surplus GLOBAL, AG Semiconductor, MTM, and others. However, this has further compressed the market demand for new devices, causing equipment manufacturers that previously relied on large-scale NAND expansion to feel an unprecedented chill in the short term.     NAND， How to break the deadlock     The NAND market entering a downturn is not due to a single reason, but a combination of multiple factors: On the one hand, the global shipment growth of smartphones is sluggish, the PC replacement cycle is prolonged, and the demand for traditional mobile NAND is under long-term pressure. On the other hand, the explosive growth in demand for HBM and DDR5 driven by AI has tilted capital and R&D manpower towards these emerging fields, and NAND is gradually being marginalized. In addition, NAND is also facing capital pressure. Over the past three years, the total investment in the semiconductor industry has reached a historic high, forcing manufacturers to control costs and invest limited resources in businesses with faster returns. Finally, we cannot ignore the technological challenges. Currently, the number of NAND stack layers is approaching the limit of 400, and process difficulty, yield issues, and cost control have become bottlenecks, greatly increasing investment risks. In the foreseeable future, the NAND market will continue to maintain a low speed, investment will be cautious, and manufacturers will allocate more resources to DRAM and HBM. However, in the medium term, with the popularity of AI training, edge computing, high-capacity SSDs and other scenarios, NAND may rediscover growth opportunities. For example, in the storage systems required for future generative AI, high-capacity and low-cost NAND may have unique value. Of course, NAND manufacturers are also looking for breakthrough opportunities like HBM, such as the recent collaboration between Sandisk and SK Hynix aimed at standardizing "high bandwidth flash" (HBF). HBF is a memory technology based on NAND flash memory, built into a package similar to HBM. This marks the first solid step in the industry towards integrating flash memory and DRAM like bandwidth into a single stack, with the potential to fundamentally change the way AI models access and process data on a large scale. But in the long run, the dual breakthroughs in technology and market will truly determine whether the NAND industry can reach the next turning point. On the one hand, new processes such as hybrid bonding and>400 layer stacking need to mature in order to achieve a qualitative leap; On the other hand, new application bursts must emerge on the demand side in order to free NAND from the fate of marginalization. Otherwise, this former 'star storage' is likely to continue hovering on the edge of the industry.

On August 19th, Intel Corporation and Japan's SoftBank Group announced that SoftBank will invest $2 billion (approximately 14.376 billion yuan) in Intel! According to the agreement, SoftBank will purchase Intel's common stock at a price of $23 per share. Affected by this news, Intel's stock rose 4% in after hours trading. This investment is seen as an important vote of confidence in Intel. In recent years, Intel has failed to fully seize the opportunities brought by the artificial intelligence boom in the advanced semiconductor field, resulting in poor stock price performance. In 2024, Intel's stock price fell by 60%, marking the worst annual performance since the company went public more than half a century ago. However, as of the close of this Monday, Intel's stock price has risen by 18% in 2025. Intel, as the only company in the United States capable of producing the most advanced chips, holds a crucial position in the US semiconductor supply chain. Recently, Intel has become a focus of discussion in the Washington political arena as the company is seen as a key chip supplier to the United States. However, Intel's foundry chip manufacturing business has not yet received significant customer orders, which is crucial for the stability and expansion of its business. Last month, Intel stated that it would further invest in its foundry business after receiving customer orders. At the industry level, the arrival of this funding coincides with Intel's critical transformation period. According to the second quarter financial report, Intel achieved revenue of $12.9 billion, which was basically the same as the same period last year, but suffered a net loss of approximately $2.9 billion due to restructuring, impairment, and one-time costs. To alleviate pressure, the company's management is reducing operating expenses while continuously promoting organizational streamlining, and is shifting space for wafer foundry manufacturing, chip products, and AI routes through a "cost reduction+focus" approach. Currently, the progress of capital expenditures, customer commitments, and manufacturing outsourcing business has become an important signal for the outside world to observe Intel's future trends. However, in the fiercely competitive semiconductor industry, relying solely on financial subsidies or cost control is not enough to reverse the situation. What is more crucial is technological iteration and gaining more customers. Especially Intel's decision to continue investing in its wafer foundry business (IFS) is crucial in identifying key customers and long-term foundry orders. This is related to whether the utilization rate and gross profit margin of the production line can be improved, thereby establishing a sustainable business path and forming a positive cycle for the subsequent research and mass production of nodes such as 14A/18A. SoftBank's investment has also sparked speculation in the market about the potential synergy between Arm, a subsidiary of SoftBank, and Intel. Intel is promoting its foundry business, hoping to provide wafer manufacturing services to more chip customers. If the two can collaborate, Arm's IP ecosystem and Intel's manufacturing capabilities may complement each other.