Semiconductor

Nvidia CEO Jensen Huang met former President Donald Trump on Capitol Hill to discuss the proposed GAIN AI Act, which would force U.S. chipmakers to prioritize domestic sales of advanced AI processors over exports to markets such as China. Huang welcomed the bill’s exclusion from the NDAA, warning it would stifle innovation and harm U.S. competitiveness, and advocated for a single federal AI framework rather than fragmented state rules. He noted that tighter export controls could reshape global AI‑hardware supply chains, prompting firms like Nvidia and AMD to shift focus toward domestic and allied‑nation customers while navigating stricter compliance requirements.

ASML Holding repurchased €2.1 billion of shares in the first nine months of FY 2023‑24, bringing total buy‑backs to €5.0 billion and lifting EPS by €0.42. The programme, backed by €5.8 billion free cash flow from record €26.0 billion revenue, reflects confidence in its EUV market dominance and upcoming High‑NA EUV launch. Shares gained 1.3 % after the announcement, and analysts upgraded ratings, citing robust cash generation and attractive valuation. Management expects FY 2024 revenue of €28 billion and €6.5 billion free cash flow, sustaining further repurchases.

words.Dutch chip maker Nexperia has publicly urged its Chinese facilities to resume exports, warning that “imminent production outages” are looming for customers worldwide. The plea follows a Dutch government seizure of Nexperia’s Dutch subsidiary over U.S. security concerns, which prompted Beijing to restrict shipments from China. Although the Dutch intervention was lifted, supply‑chain disruptions persist, threatening automotive manufacturers such as Nissan and Bosch. Analysts say the episode highlights Western reliance on China‑assembled semiconductors and may accelerate moves toward domestic chip production.

Apple and Broadcom stocks surged to new intraday highs as strong product demand fuels AI‑related growth. Apple is projected to outsell Samsung in 2025, shipping about 243 million iPhones and capturing 19.4% of the global market, a rebound driven by the iPhone 17 and a return to a $4 trillion market cap. While its AI strategy remains vague, Apple’s 2 billion‑device ecosystem offers monetization potential. Broadcom, boosted by a Goldman Sachs target‑price raise, expects AI revenue to jump 128% YoY in FY2026, supported by its role in Google’s TPUs and prospective Meta adoption. Both firms are well positioned to benefit from accelerating AI adoption.

TSMC is suing a former senior VP, Wei-Jen Lo, alleging he leaked confidential information to Intel after joining them in July. TSMC claims Lo violated his contract and potentially the Trade Secrets Act. Concerns arise over the potential compromise of strategic proprietary data. Taiwan’s High Prosecutors Office is also investigating. TSMC’s stock fell by over 3%, while Intel’s dipped 1.5%. Intel’s CEO denies any misconduct, but the lawsuit highlights the competitive intensity and IP risks within the semiconductor industry.

Lam Research inaugurated a new $65 million R&D facility in Tualatin, Oregon, expanding its “Silicon Forest” presence. The 120,000-square-foot building will house up to 700 employees, boosting the company’s development of advanced semiconductor manufacturing equipment. This investment reflects Lam’s commitment to the growing semiconductor market, particularly in AI-related technologies like SABRE® 3D and VECTOR® TEOS 3D. The expansion strengthens Lam’s position as a key supplier of fabrication equipment and reinforces Oregon’s role in semiconductor innovation.

Asian chip stocks declined following a drop in Nvidia’s stock, despite strong earnings. SoftBank, having recently sold its Nvidia shares, also saw a significant fall. Companies like SK Hynix, Samsung, and TSMC, key Nvidia suppliers and competitors, experienced declines. Factors contributing to the downturn include Bitcoin’s selloff, speculation regarding Fed interest rates, tightening financial conditions, and AI bubble concerns. The pullback highlights the interconnectedness and sensitivity of the semiconductor supply chain to major players like Nvidia.

Nvidia’s strong earnings, driven by AI chip demand, boosted Asian chip stocks. SK Hynix and Samsung, key memory suppliers, saw gains along with TSMC, Nvidia’s primary chip manufacturer. Renesas and Tokyo Electron, Nvidia suppliers, also rose. SoftBank, despite selling Nvidia shares, benefited through Arm and AI ventures. Nvidia’s CEO dismissed “AI bubble” concerns, citing a “new computing era,” suggesting long-term industry growth.

The semiconductor industry anticipates a memory chip shortage due to surging AI demand, diverting resources towards advanced memory solutions and impacting other sectors like consumer electronics and automotive. SMIC’s CEO noted client hesitation in placing orders for other chips. Analysts highlight under-investment in production capacity following recent downturns, exacerbating supply constraints. Memory companies are reportedly increasing prices, with potential impacts on low-end devices and consumers, who may face higher electronics prices.

Elon Musk announced Tesla may build its own “gigantic” chip fabrication plant (“Tesla terra fab”) to meet growing AI and robotics demands. Currently relying on TSMC and Samsung, Tesla could also partner with Intel. Musk envisions a capacity of 100,000 wafer starts per month, scaling to 1 million, potentially disrupting the semiconductor landscape. This signifies a major shift to vertical integration. Musk also announced the production of Cybercab in April, reinforcing Tesla’s commitment to AI and robotics as drivers of economic growth.