News

Last week, Nvidia made history by becoming the first company to surpass a market value of $5 trillion. But this is just one of the many ways it affects the global economy. This chip manufacturer leading the artificial intelligence revolution is not only the world's most valuable company to date, but may also be the most influential stock in Wall Street history. Since the beginning of 2023, Nvidia has been the main driving force behind market growth, bringing huge returns to shareholders and earning billions of dollars for CEO Huang Renxun. Nowadays, its market value has exceeded 6 out of 11 sectors in the S&P 500 index, and even surpassed the market value of most countries' entire stock markets. From a historical perspective, this is clearly a huge anomaly and a shocking move, "said Matt Miskin, Co Chief Investment Strategist at Manulife John Hancock Investments. Just last week, Nvidia announced cooperation agreements with Nokia, Samsung Electronics, and Hyundai Motor Group. Although the company will not release its financial report until mid November, the recent performance of large technology companies highlights their enormous growth potential. Microsoft, Amazon, and Meta Platforms have all pledged to continue investing heavily in artificial intelligence. According to data compiled by Bloomberg, it is expected that the total capital expenditures of these four companies will increase by 34% in the next 12 months, reaching approximately $440 billion. These expenses are the main reason why Nvidia's projected revenue for the next fiscal year is expected to reach $285 billion, compared to only $11 billion in revenue for the 2020 fiscal year. All these help to explain why the artificial intelligence based stock market foam has become so popular, and Nvidia is the center of this foam. Last week, Huang Renxun played down people's concerns about the runaway market frenzy at the company's annual GTC conference, and Jerome Powell, the chairman of the Federal Reserve, also refuted the idea of comparing the current situation with the Internet foam at the end of the 1990s at a press conference on Wednesday. This trend will reach its peak and reverse, and we expect this situation to eventually happen, "Miskin said. However, currently, companies at the center of the artificial intelligence race are performing the best in terms of profitability, and this situation needs to change in order to achieve leadership succession. Nevertheless, the S&P 500 index seems to have put too many eggs in one basket The following five charts document the process of Nvidia's market value soaring to $5 trillion and demonstrate its importance to the stock market:   As the world's largest company by market capitalization, Nvidia naturally has the highest weight in major stock indices (calculated by market capitalization). Its stock accounts for 8.5% of the S&P 500 index, exceeding the total weight of the 240 companies with the lowest market capitalization. Howard Silverblatt, a senior index analyst at Standard&Poor's, said that this is likely the highest weighted record among any constituent stock, but he also pointed out that it is difficult to find daily data for a century. In mid-2023, Apple's weight reached a peak of 7.7%, while Microsoft also reached 7.4% later that year. At present, the total weight of the seven major technology stocks in the S&P 500 index exceeds 36%, with Apple Inc. ranking second with a weight of 6.9%.   Nvidia is not only the world's most valuable company, with a market value about $1 trillion higher than the second ranked Apple, but according to data compiled by Bloomberg, Nvidia's market value even exceeds the total market value of five countries' stock markets: the Netherlands, Spain, the United Arab Emirates, and Italy. This Santa Clara, California based company's market value now exceeds that of all stock markets except for the United States, China, Japan, Hong Kong, and India.   Almost all Wall Street analysts are bullish on this stock, with about 91% of analysts giving it a "buy" or "buy" rating. The market generally believes that this upward trend will continue, and HSBC analyst Frank Lee recently raised the target price of the stock to the highest on Wall Street at $230- meaning its market value will approach $8 trillion. However, there is also an analyst who holds the opposite opinion on the stock: Jay Goldberg, an analyst at Seaport Global Securities, has maintained a "sell" rating since April and has set a Wall Street low target price of $100. During this period, the stock price has more than doubled.   As the company expands, its sales growth rate often slows down due to a larger base. The average annual revenue growth rate for S&P 500 index companies with expected sales of $100 billion or more is 6%. As a result, Nvidia has become an exception, with its revenue expected to increase by nearly 60% this fiscal year. Although this growth rate has slowed down from 126% and 114% in the previous two years, it still far exceeds other giant companies of Nvidia. The expected annual revenue growth rates for the second and third ranked companies - Microsoft and Apple - are 15% and 6.2%, respectively.   With the soaring stock price of Nvidia, Huang Renxun's net worth has also skyrocketed. According to the Bloomberg Billionaires Index, his net worth has reached $176 billion. This year alone, his wealth has increased by over $60 billion, enough to make him one of the top ten billionaires in the world. According to documents submitted to the US Securities and Exchange Commission in October, Huang Renxun holds approximately 3.5% of the company's shares in his personal name and family trust.

Just now, Skyworks, a leading global high-performance analog and mixed signal semiconductor company, and Qorvo, a leading global provider of connectivity and power solutions, announced that they have reached a final agreement to merge the two companies in cash and stock transactions, with a combined valuation of approximately $22 billion, to create a globally leading high-performance RF, analog, and mixed signal semiconductor company headquartered in the United States. Skyworks CEO and President Phil Brace said, "This merger is an important milestone for both our industry and Skyworks. The combination of Skyworks and Qorvo's complementary product portfolio, along with a world-class engineering team, will enhance our ability to meet the growing customer demands in the mobile and diversified markets. With stronger scale, a more diverse customer base, and operational synergies, we can bring superior innovation to our customers and create sustainable value for shareholders. ” Qorvo CEO and President Bob Bruggeworth said, "Qorvo and Skyworks share a common culture of innovation and are committed to solving our customers' most complex challenges. By partnering with Skyworks, we can accelerate innovation and provide broader and more comprehensive solutions in numerous growth areas. We are pleased to leverage the combined strengths of our teams, products, and technology combinations to strengthen our capabilities in the mobile field and significantly expand our influence in industries such as defense and aerospace, edge IoT, artificial intelligence data centers, automotive, and others driven by long-term growth trends. ” Strategic basis and transaction highlights It is expected that this transaction will bring significant long-term value to customers, employees, and shareholders. Enhanced scale and financial condition: The combined company is expected to have a total revenue of approximately $7.7 billion and adjusted EBITDA of $2.1 billion. The combined company will be more capable of competing with larger companies - thanks to a stronger and more balanced revenue base, resulting in more predictable performance, more efficient cost structure, and flexible cash generation over the cycle. Stronger innovation capability: This merger will create an innovative global RF, analog, and power technology company, providing customers with more integrated complete solutions and a wide range of products and technologies. The merged company will bring together world-class engineering talent, including approximately 8000 engineers and technical experts, as well as over 12000 authorized and pending patents, enabling accelerated development of advanced system level solutions and unlocking new Design Win opportunities to meet growing customer demands. Create $5.1 billion mobile business: This merger will integrate complementary RF technologies and top-notch products, expand opportunities for mobile business, and enhance revenue stability. A broader product portfolio will enhance our cross platform competitiveness, deepen customer integration, and enrich our technological foundation, while consolidating our advantages in dealing with increasingly complex RF businesses. Establishing a diversified broad market platform worth $2.6 billion: This transaction will create a broad market platform worth $2.6 billion, with a continuously growing potential market size (TAM) and strong profitability, covering the defense and aerospace, edge IoT, artificial intelligence data centers, and automotive markets. The characteristics of these markets are good long-term growth trends, long product lifecycles, and good gross profit margins. Enhancing the domestic manufacturing status and utilization rate in the United States: The merged company will strengthen its domestic production capacity and improve its capital efficiency, and provide support through a strong supply chain partner network to meet the needs of large quantities and highly specialized customers. Immediate and Significant Value Added: It is expected that this transaction will immediately and significantly increase non GAAP earnings per share upon completion of the transaction, and generate $500 million or more in annual cost synergies within 24-36 months after the full integration of the two companies. Transaction Details According to the terms of the agreement, at the end of the transaction, Qorvo shareholders will receive $32.50 in cash and 0.960 shares of Skyworks common stock for each share of Qorvo stock they hold, which means the combined enterprise value is approximately $22 billion. After the transaction is completed, Skyworks shareholders will hold approximately 63% of the merged company's shares, while Qorvo shareholders will hold approximately 37% of the merged company's shares (calculated on a fully diluted basis). Phil Brace will serve as the CEO of the merged company; Bob Bruggeworth will join the board of directors of the merged company. The board of directors of the merged company will consist of 11 directors, including 8 from Skyworks and 3 from Qorvo. Skyworks plans to pay for the cash portion of the transaction through existing cash and additional financing. Skyworks has received a debt financing commitment from Goldman Sachs Bank of America. This transaction does not come with any financing conditions. It is expected that the net leverage ratio of the merged company at the end of the transaction will be approximately 1.0 times its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the past 12 months. This favorable capital structure will help the company continue to invest in its business, thereby enhancing shareholder value. Time and Approval The boards of directors of both companies have unanimously approved the transaction, which is expected to be completed in early 2027, subject to obtaining necessary regulatory approvals, approvals from Skyworks shareholders and Qorvo shareholders, and meeting other customary closing conditions. Starboard Value LP, which holds approximately 8% of Qorvo's shares, has signed a voting agreement to support the transaction.

By the early 1970s, engineers already had oscillators, timers, and monostable circuits, though they weren't integrated into a single integrated circuit. Analog circuits using discrete components were cumbersome, and existing timer chips lacked flexibility. This changed in 1971, when Hans Camenzind, a contractor at Signetics, designed a general-purpose timer chip using only about 25 transistors, a few diodes, and a clever resistor divider network. The result was the NE555: an eight-pin analog timer that could generate monostables, square waves, and triggers, depending on how it was connected. It operated from a single supply, had a robust output stage, and could withstand noisy environments. Signetics's introduction quickly became a hit among hobbyists and industry.   In the decades that followed, the 555 chip found widespread use in LED flashlights, motor drivers, servo testers, voltage-controlled oscillators (VCOs), debounce circuits, and more. Engineers used it to control relays, play melodies, detect missing pulses, and ensure the proper functioning of watchdog timers. Tens of billions of units have been shipped, and today's CMOS versions continue this tradition, retaining the mindset that millions of engineers grew up with while significantly reducing power consumption.   Depending on how the pins are connected, the 555 can operate in one of three core modes: Monostable (one-shot): A negative pulse at the trigger pin pulls the input below 1/3 VCC, setting the latch and driving the output high. The capacitor then charges through the resistor, and when the voltage reaches 2/3 VCC, the latch resets and the output falls. The pulse width is t ≈ 1.1 RC. Astable (free-running): Placing a capacitor between ground and pin 6 (THRES), with the charge/discharge time controlled by two resistors (RA and RB), causes the output to oscillate continuously. The frequency is approximately f ≈ 1.44 / ((RA + 2RB) x C). Bistable (Flip-Flop): TRIG and THRES can be used as set/reset inputs, enabling the 555 to be used as a basic storage element or a debounced switch. The IC also includes a control voltage pin for external modulation or PWM control, providing a 2/3 VCC threshold. If unused, it is typically bypassed to ground with a 10 nF capacitor to prevent instability. One of the 555's most useful design features is its output stage. The bipolar output current is approximately 200 mA, sufficient to directly drive small loads, making it a popular choice for low-component-count circuits long before microcontrollers became inexpensive and commonplace. Despite its analog simplicity, the 555 continues to appear in new designs where its inclusion still makes sense. While a microcontroller might seem overkill, the 555 chip is a fast, deterministic, and robust solution for implementing pulse, delay, or blinking behavior with just a few passive components. With the introduction of CMOS versions like the TLC555 and LMC555, the chip's appeal expanded to low-power, battery-powered, and rail-to-rail swinging applications.   Of course, there were trade-offs. The bipolar NE555, due to its large output transients, could introduce noise spikes on VCC. It also had asymmetrical output drive strengths and a minimum duty cycle exceeding 50% in its basic astable mode, though a shunt diode across RB or other topologies could address this.   Nevertheless, for engineers who grew up controlling blinking LEDs with 555 chips on breadboards, this chip was the epitome of analog circuit elegance: no firmware, no initialization, just a few volts and a capacitor. And it still ships in volumes that most digital ICs can only dream of.

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"