Semiconductor

ASE Technology Holding reported strong 2025 results, with consolidated net revenues reaching approximately US$20.8 billion, an 11.8% increase year-over-year. The fourth quarter also saw robust growth. Demand for advanced packaging and testing services, driven by AI, 5G, and complex ICs, fueled this performance. The Advanced Technology Materials segment showed significant year-over-year revenue growth, highlighting its critical role in next-generation chip manufacturing.

A presidential endorsement following a meeting with Intel’s CEO boosted the company’s shares. President Trump highlighted the U.S. government’s significant stake, acquired through the CHIPS Act, which has already yielded substantial returns. Intel, facing competition, recently launched advanced U.S.-made chips, showcasing domestic manufacturing capabilities. This government investment and strategic recalibration aim to strengthen U.S. technological sovereignty amid complex global supply chains.

Baidu plans to spin off its AI chip unit, Kunlunxin, for a Hong Kong IPO. This move aligns with China’s push for semiconductor self-sufficiency amid US-China tech tensions. Kunlunxin, integral to Baidu’s AI ambitions, has seen significant revenue growth and secured orders from major clients. The spin-off aims to foster independent growth and attract sector-specific investors, though regulatory approval is pending.

China is pressuring the Netherlands to reverse its decision on Chinese-owned chipmaker Nexperia, citing concerns for global semiconductor market stability. The Dutch government’s move, reportedly influenced by US security worries, has led to Chinese retaliatory measures and anxieties among automakers facing ongoing chip shortages. China urges the Netherlands to correct its “mistakes” and adopt a responsible attitude towards the global supply chain. Nexperia’s critical “foundation chips” are vital for vehicles, and disruptions could severely impact auto production.

The U.S. will implement new tariffs on Chinese semiconductor imports starting June 2027, following an investigation into unfair trade practices. Initially set at zero for 18 months, the tariffs aim to address China’s non-market policies and pursuit of global semiconductor dominance. This move, distinct from previous duties, continues a focus on older chip technologies and underscores the strategic importance of semiconductors in global technological competition.

Micron’s stock jumped over 12% after reporting strong Q1 earnings and an optimistic outlook, fueled by surging demand for AI-driven memory chips. The company exceeded expectations, projecting substantial growth in the high-bandwidth memory market and increasing capital expenditures. Executives noted significant unmet demand, indicating a favorable pricing environment. Wall Street analysts responded positively, with some raising price targets and upgrades, highlighting Micron’s significant upside and the broader benefit to memory manufacturers from AI’s continued expansion.

China’s AI chip sector is surging, driven by geopolitical tensions and a push for self-sufficiency. Companies like Huawei, Baidu, Alibaba, and Cambricon are innovating in GPUs and AI accelerators. Despite US export controls, Chinese firms are developing unique strategies, such as Huawei’s chip clusters and Baidu’s full-stack approach, to challenge foreign dominance. A wave of IPOs, including MetaX and Moore Threads, highlights robust investor confidence and the nation’s commitment to domestic AI innovation.

Micron Technology exceeded Q1 expectations with strong AI-driven demand, reporting $4.78 EPS and $13.64 billion in revenue. The company forecasts robust Q2 growth, projecting $18.70 billion in revenue and $8.42 EPS, significantly outpacing analyst estimates. This surge is fueled by the booming AI sector, which requires substantial memory and storage solutions, positioning Micron as a key supplier for AI infrastructure. Shares climbed over 7% post-announcement.

Broadcom posted a solid fiscal Q4, with revenue up 28% to $18.02 billion and adjusted EPS rising 37% to $1.95, both beating forecasts. AI‑related sales surged, highlighted by Anthropic’s $10 billion and $11 billion Ironwood XPU orders and a $1 billion deal with a new XPU client. Margins expanded, and Q1 guidance topped expectations, prompting a “Hold” rating and a price‑target lift to $425. However, investors worried about AI customers potentially developing in‑house chips, causing a 4.5% after‑hours drop despite the earnings beat.

.Broadcom beat Q4 expectations, reporting $1.95 EPS and $18.02 bn revenue, and forecast FY‑Q1 revenue of about $19.1 bn, a 28% YoY rise driven by AI demand. AI‑related chip sales doubled to $8.2 bn, boosting net income 97% to $8.51 bn. The company added a fifth custom‑AI customer, with orders totaling $11 bn and a $1 bn commitment for 2026, bringing its AI backlog to $73 bn. Broadcom’s XPU strategy aims to combine GPU throughput with ASIC efficiency, positioning it as a full‑stack AI infrastructure provider amid intense competition from Nvidia and others.