Everyone talks about TSMC. About NVIDIA. About the $200-million EUV machines. But before any of those machines can run, something has to flow into the plant first — silicon wafers smoother than glass, photoresist purified to one part in a trillion, and dozens of special gases. This is the deepest layer of the chip supply chain: the 'materials.' It looks like a commodity, but it's actually controlled by just a handful of Japanese companies — and it was once used as a 'weapon' in a trade war.
Intel CEO Warns Memory Prices Up 5x to 7x as Shortage Threatens 2027
Intel CEO Lip-Bu Tan warned this week that memory prices have jumped 5x to 7x and now account for roughly 75% of the cost of some lower-end phones and laptops, cautioning the shortage could deepen in 2027. Tan told investors the industry faces one of the most severe supply constraints in its history across leading-edge logic, silicon wafers, memory, and subscripts, and said these shortages will persist for the foreseeable future. Intel is pivoting production toward data-center CPUs and now guides 2026 capital expenditure above $20 billion, with 2027 spending set to run significantly higher. Micron Technology echoed the outlook, saying it sees tightness continuing beyond 2027, aligned with SK hynix flagging 2027 as potentially the industry's worst supply year. Micron's $100 billion in take-or-pay remaining performance obligations and $22 billion in customer deposits and letters of credit lock in floor pricing above prior peak margins, while its fiscal third-quarter gross margin hit 84.9% on DRAM pricing gains in the low 60s percentage range and NAND pricing in the mid-80s percentage range.
Nvidia CEO Jensen Huang Signals Chip Sales to Double Next Year
Nvidia CEO Jensen Huang said Thursday he expects the company to sell twice as many chips in the next year as it did this year, a signal to investors that demand has not yet peaked. Huang attributed the outlook to AI investment spreading across industries, economies and countries. Management said consumer expectations point to another doubling of growth next year, and Nvidia projected around 70% revenue growth for the fiscal year ending January 2028, bringing revenue to almost $673 billion. Management classified the outlook as supply tight, implying Nvidia's capacity to ship chips could remain one of the largest impediments to growth. Last year, Huang said the company shipped around 6 million Blackwell GPUs in four quarters, and Rubin is now coming up as the next big part of the product cycle.
Soitec Raises €500 Million in ORNANE Bonds Due September 2033
Soitec announced the success of its offering of bonds settled in cash and/or convertible into new shares and/or exchangeable for existing shares, known as ORNANEs, due September 2033 for a nominal amount of €500 million. The bonds carry a fixed coupon of 0.5% per annum, were issued at 100% of their Principal Amount on September 25, 2026, and will be redeemed at par on September 25, 2033, with the conversion and exchange price set at €206.46, a 55% premium above the reference share price of €133.20. Soitec said it will use the net proceeds for general corporate purposes, which may include refinancing existing indebtedness and investments to support organic growth, and Chief Financial Officer Albin Jacquemont tied the placement to investor confidence in the company's Photonics-SOI technologies for next-generation AI infrastructure. Concurrently, certain members of the bank syndicate acting as joint bookrunners organized a placement of existing Soitec shares at €133.20 through an accelerated bookbuilding to facilitate hedging for certain bond subscribers, from which Soitec will receive no proceeds. The company agreed to a lock-up ending 90 calendar days after the Issue Date, and potential dilution from the offering would represent up to 6.3% of the outstanding share capital should Soitec decide to deliver only new shares upon exercise of the conversion and exchange right.
Nvidia to double chip volume next year, Jensen Huang says
Nvidia CEO Jensen Huang said the company expects to double the total number of chips it sells next year as rapid AI adoption continues across global industries. "I expect Nvidia to sell twice as many chips as this next year as we do this year," Huang told the media at a summit with King Charles III in Scotland, adding that AI contributes so much to the benefits of different industries and economies that people in almost every country want to invest in AI. The forecast points to continuing massive growth for the next six quarters and comes shortly after the company revealed it expected 70% growth in the fiscal year ending in January 2028, or about $673B. Nvidia does not disclose the total number of chips it sells; its best-known products are data center graphics processing units such as its Blackwell and Rubin chips, and last fall Huang said Nvidia had shipped 6 million Blackwell GPUs in four quarters. Huang, who was joined at the summit by representatives from Google DeepMind, OpenAI and Anthropic, was in the U.K. to discuss AI safety, and said that when a product is not safe, it should be held back and kept in engineering.
Air Products Signs $250 Million Arizona Semiconductor Gas Supply Deal
Air Products Inc. announced in mid-September 2026 that it has signed a long-term agreement with a leading semiconductor manufacturer and will invest about US$250,000,000 in Arizona to build, own and operate high-purity gas supply infrastructure for the customer's expanding U.S. manufacturing and advanced packaging facilities. The Arizona project is the second recent semiconductor manufacturing supply win for the company, and together with its large semiconductor gas supply project in Pyeongtaek, South Korea, it lifts total announced semiconductor investment above US$900,000,000. Air Products' narrative projects $16.0 billion in revenue and $3.9 billion in earnings by 2029, requiring 8.4% yearly revenue growth and an earnings increase of about $3.9 billion from -$47.3 million today. Three members of the Simply Wall St Community currently place Air Products' fair value in a tight US$342 to US$360 range, against a forecast fair value of $342.42 that implies 20% upside to the current price.
Aeluma Posts $4.5 Million Fiscal 2026 Revenue, Targets AI Datacom Commercialization
Aeluma reported total revenue of $4.5 million for fiscal 2026, near the high end of its guidance, as the company pivots toward commercializing high-speed photodetectors and quantum dot lasers for the AI datacom market. Fourth-quarter revenue was $582,000, while the full-year GAAP net loss widened to $9.2 million, or $0.52 per share, from $3 million, or $0.23 per share, in fiscal 2025. Adjusted EBITDA was negative $5.2 million for the year, compared to positive $186,000 in fiscal 2025, driven by increased headcount and operating expenses. The company ended the year with $56 million in cash and no debt, after raising $20.1 million through its ATM facility. For fiscal 2027, Aeluma expects to recognize approximately $2.3 million of booked government contract revenue, with potential for an additional $2 million under discussion, and plans capital expenditures of $10 million to $12 million. Aeluma also announced a letter of intent with the Department of Commerce CHIPS R&D Office for up to $30 million in funding, which is likely to be accounted for as an equity investment rather than revenue, and a new agreement with Sumitomo Chemical Advanced Technologies to expand wafer production capacity.
Japan Arrests Former Asahi Kasei Employee Over Leaking Semiconductor Adhesive Secrets to China
Japanese police have arrested a former employee of Asahi Kasei Corp, a major Japanese chemicals company, on suspicion of disclosing confidential information about adhesives used in semiconductor manufacturing to a Chinese company. The suspect is Shoichi Furukawa, 66. Police in Aichi Prefecture did not disclose whether he admits to the allegations. Police said Furukawa had served as head of the production technology department and in other positions before leaving Asahi Kasei in late November 2018, after which he went to work for a company in Nagoya. That company consulted police in August 2024 about a separate suspected case in which Furukawa was involved in an information leak. An examination of several items, including a computer seized during a search of Furukawa's home, confirmed that he took Asahi Kasei trade secrets out of the company. Kyodo News reported that Furukawa is suspected of failing to return a digital storage device containing information about the production of Novacure, a curing agent classified as a trade secret, on or around November 30, 2018, before sending that information by email to a person connected to another company on or around September 13, 2024.
China unveils five-year plan to build up electronics industry, targeting revenue above 4.5 trillion dollars by 2030
China has unveiled a new five-year development plan for manufacturing in electronics- and information technology-related industries, setting a target to raise revenue above 30 trillion yuan, or 4.5 trillion dollars, by 2030. The plan was drawn up jointly by the Ministry of Industry and Information Technology, or MIIT, and the National Development and Reform Commission, or NDRC. It covers the strategic framework from 2026 to 2030 and reflects the Chinese government's push for supply chain self-reliance, aiming for global leadership in strategically important emerging technologies from artificial intelligence to advanced computing, amid ongoing global competition. Beyond the revenue target, China also aims to raise research and development investment in the industry to 3.5% by 2030, setting out 17 missions covering nine key industry groups, from electronic components and materials, specialised manufacturing and measurement equipment, photonics, advanced computing, consumer electronics, power electronics, positioning and timing information technology, chips and AI endpoint devices, through to industrial electronics. The plan also drives technology development in the integrated circuit industry supply chain, while upgrading advanced electronic materials and smart sensors. In computing and memory, China will develop high-bandwidth flash memory alongside new forms of storage products such as Ferroelectric RAM, Resistive RAM and Magnetoresistive RAM, and aims to build very large-scale intelligent computing infrastructure supporting AI clusters equipped with hundreds of thousands of accelerator cards, while accelerating the deployment of space computing technology. The announcement of this sector-specific plan follows China's release on September 7 of its 15th five-year development plan for the information and communications industry, drawn up by the Ministry of Industry and Information Technology.
Shinhokoku Material Hits Limit-Up on Latest Research Presentation at International Conference
Shinhokoku Material briefly hit the daily limit-up. The company announced in a release that it presented its latest research results at the international conference SPIE Photomask Technology + EUVL 2026. This marks its fourth consecutive year of presenting a paper, and this time it demonstrated the unique isotropy of "Stainless Invar IC-DX," which overcomes "deformation under magnetic field environments," a potential challenge for optical equipment, and it said it strongly showcased its technological superiority to the global semiconductor industry. This appears to have become a catalyst for buying interest.
AXT Shares Jump 11.49% After Needham Names It a Co-Packaged Optics Beneficiary
AXT Inc. shares climbed 11.49 percent on Wednesday to close at $64.30 after Needham & Company named the company one of five semiconductor beneficiaries in the accelerating co-packaged optics sector. Following a five-day visit to Semicon Taiwan 2026, Needham said co-packaged optics will play a huge role in debottlenecking artificial intelligence networks through 2028 and beyond, and that AXT's indium phosphide substrate sits at the center of that shift. Needham also named Coherent Corp. and Lumentum Holdings among the similar beneficiaries, signaling a more bullish view across the industry. The firm upgraded AXT to buy from hold last July with a $90 price target, which still implies 56 percent upside from Wednesday's close. Investors will watch for business updates next week when AXT participates in the Morgan Stanley ASIA Best Corporate Day on Monday and Tuesday, September 21 to 22, including any guidance on third-quarter financial performance and updated operational and financial guidance for the rest of the year. In the second quarter, AXT swung to a net income of $13.03 million from a $7.67 million net loss a year earlier, as total revenues more than doubled to $47.59 million from $17.97 million on record indium phosphide revenues. Hedge fund holders fell to 33 in the second quarter from 37 in the first, but their committed capital rose 34 percent to $487.9 million from $363.7 million quarter-on-quarter.
Broadcom Trades at 19x Forward Earnings Despite 221% AI Revenue Surge
Broadcom is trading at just 19 times forward earnings even as its AI semiconductor revenue surged 221% year over year to $16.70 billion, a disconnect that 24/7 Wall St. calls an opportunity with a $423.95 price target implying 22.31% upside from the current $344.05 quote. The call follows a fiscal Q3 report in which total revenue reached $29.591 billion, up 85.5% year over year, with non-GAAP EPS of $3.32 beating consensus, and management guided Q4 AI revenue to $21.7 billion. CEO Hock Tan said Q3 demand was simply hot and that the company is just getting started, and management now targets fiscal 2027 AI revenue of $115 billion and fiscal 2028 AI revenue of $230 billion across a $350 billion two-year shipment pipeline spanning six XPU customers including Google, OpenAI, Meta, and Anthropic. Broadcom's 19x forward multiple looks cheap against NVIDIA at 24x, AMD at 33x, and Marvell at 56x, despite faster AI revenue acceleration than those peers, and the Wall Street consensus target sits at $531.85 with 37 Buy and 8 Strong Buy ratings. Execution risk remains the biggest concern, with Tan flagging land, power, and shell constraints on capacity deployment and potential bottlenecks in HBM memory, substrates, and leading-edge wafers, while the bear scenario lands at $374.92, still above today's price.
US Lacks Effective Tools to Halt China's AI Catch-Up as Rare Earth Retaliation Looms
The United States is struggling to find effective means to prevent China from becoming an AI superpower. Anthropic CEO Dario Amodei, in a 3,800-word essay, called for banning sales of advanced AI semiconductors to China and tightening crackdowns on smuggling, but President Trump has signaled openness to allowing sales of some chips to China, including Nvidia's H200. The biggest challenge for the US is avoiding provoking further tightening of export controls by the Chinese government on rare earths used in precision-guided missiles and drones. Last year, President Trump and President Xi Jinping agreed to a truce in which China guaranteed rare earth supplies in exchange for tariff reductions, and that agreement is likely to be extended when Xi visits the White House next week. Although China still lags in semiconductor production, AI models developed by companies such as DeepSeek and Moonshot AI are narrowing the capability gap with the most advanced US models, often at a fraction of the cost.
Global photoresist prices rise up to 38%, Xilong Scientific hits limit up
Japan's JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical and other companies announced that from October 1, 2026, new photoresist pricing for global customers will be raised by 15% overall, with high-end ArF series long-term contract quotes up 16% to 22%, HBM-specific immersion ArF up as much as 24%, spot bulk orders up 32% to 38%, KrF series standard grades up 9% to 14%, and 3D NAND thick-film KrF up 18% to 20%. Boosted by the price hike news, the electronic chemicals sector remained strong all day. Xilong Scientific surged to limit up with heavy volume shortly after the midday open, hitting a two-month high, with turnover in less than 15 minutes exceeding the entire previous day's total. Haixing shares climbed rapidly on late-session volume, while Guangxin Materials and Zhongshi Technology also showed unusual upward moves during the session. Also lifted by the price hike news, the glass fiber sector index has risen for seven consecutive days, with Honghe Technology up for seven straight days, and China Jushi, International Composites and Sinoma Science & Technology all up for five consecutive days. The latest data from Sublime China Information shows that as of September 15, the ex-factory price of 7628 electronic fabric was about 11.5 to 12.1 yuan per meter, up 10% to 20% month on month, with the year-to-date gain reaching as high as 162%.
Juhe Materials plans to invest 300 million yuan in Guoju Tonghui to expand semiconductor materials footprint
Juhe Materials announced on September 14 that it intends to use its own funds to join Shanghai Guoju Tonghui Enterprise Management Consulting Partnership as a limited partner, with a new subscribed capital contribution of 300 million yuan. The partnership plans to focus on semiconductor materials-related fields. Guoju Tonghui currently has total subscribed capital of 30 million yuan. After this capital increase and the transfer of subscribed capital shares are completed, its total subscribed capital will increase to 950 million yuan, of which Juhe Materials and Juhe Zhiyuan will subscribe 300 million yuan and 350 million yuan respectively, accounting for 31.58 percent and 36.84 percent. The company's final subscribed capital ratio is expected not to exceed 33.33 percent. This transaction constitutes a related-party transaction and still needs to be submitted to the shareholders' meeting for review. In the first half of 2026, the company achieved operating revenue of 10.602 billion yuan, up 64.75 percent year on year, while net profit attributable to shareholders of the listed company was negative 86 million yuan, turning from profit to loss compared with the same period last year. The company's core business is photovoltaic conductive paste, and it has already entered the semiconductor materials field through the acquisition of SKE's blank mask business, with products covering process nodes from 14 nanometers to 90 nanometers.
Grinm Semiconductor Unveils Major Asset Restructuring Plan to Acquire Stakes in Two Semiconductor Silicon Material Companies and Resume Trading
Grinm Semiconductor, a leading semiconductor silicon material company with stock code 688432, disclosed a major asset restructuring plan on the evening of September 11. It intends to acquire 71.89% equity in Shandong Grinm Ace Semiconductor Materials and 14.98% equity in Shandong Grinm Semiconductor Materials through share issuance and cash payment. After the transaction, both companies will become wholly-owned subsidiaries of Grinm Semiconductor, and the company's shares will resume trading on September 14. The issue price for the share-based purchase is set at 26.59 yuan per share, no less than 80% of the average trading price over the 120 trading days before the pricing base date, and approximately 58.8% of the share price before the trading suspension. As of the signing date of the plan, the audit and valuation work related to this transaction has not been fully completed, and the transaction prices of the target assets and the number of shares to be issued have not yet been determined. The specific transaction consideration will be further disclosed in the subsequent restructuring draft. This transaction is expected to constitute a major asset restructuring and a related-party transaction, but not a reverse merger. The controlling shareholder, RS Technologies, and the actual controller, Fang Yongyi, will remain unchanged before and after the transaction. The financial performance of the two acquisition targets shows clear divergence. Shandong Grinm Ace Semiconductor Materials achieved revenue of 208 million yuan and a net loss of 186 million yuan in 2025, and revenue of 163 million yuan and a net loss of 79 million yuan in the first half of 2026. Shandong Grinm Semiconductor Materials achieved revenue of 934 million yuan and net profit of 251 million yuan in 2025, and revenue of 555 million yuan and net profit of 141 million yuan in the first half of 2026.
Anji Technology received intensive research from 176 institutions last week, ranking first among 679 listed companies
This week, from September 7 to September 12 at the time of publication, 679 listed companies disclosed records of institutional investor research. Among them, Anji Technology received research from 176 institutions, making it the company with the largest number of institutional research visits. Anji Technology's main business is the research, development, and industrialization of key semiconductor materials. Its products include chemical mechanical polishing slurries, functional wet electronic chemicals, and electroplating solutions and additive series, mainly used in integrated circuit manufacturing and advanced packaging. Institutions focused on the company's submission of an application for H-share issuance and listing to the Stock Exchange of Hong Kong Limited, and asked whether overseas markets will be a growth priority in the future and the current progress of overseas expansion. Anji Technology responded that overseas markets are one of the company's important strategic directions. This application for H-share issuance aims to build an international capital operation platform, broaden diversified financing channels, and further enhance the company's international influence and overall competitiveness. In the past five trading days, Anji Technology's stock price rose 3.06 percent. Since the beginning of this year, the company's stock price has risen 30.88 percent, with a latest market value of 50 billion yuan.
Yuanyuan Landscape Plans Share Issuance and Cash Payment to Acquire Controlling Stake in Hualan Micro; Trading Halted
Yuanyuan Landscape, stock code 605303, is planning to acquire a controlling stake in Hangzhou Hualan Microelectronics by issuing shares and paying cash, which is expected to constitute a major asset restructuring, and trading in the company's shares has been halted. CATL repurchased 604,300 A-shares of the company for the first time, with a transaction value of about 200 million yuan. Inspur Information plans to raise no more than 9 billion yuan through a private placement to invest in AI infrastructure and other projects. Sungrow Power Supply has raised prices of photovoltaic inverters, energy storage converters, and energy storage systems by 5 to 15 percent, while Sanan Optoelectronics has raised prices for some LED chips, RF chips, power electronics chips, and optical technology chips. Zhongjuxin's investee company plans to invest 1.1 billion yuan to build a high-purity quartz materials project. Longban Media has completed its trading halt review and will resume trading on September 14.
AXT's Liquidity Supports InP Expansion Amid AI Demand
AXT, Inc. has the financial strength to support aggressive indium phosphide (InP) capacity expansion, positioning the company to capitalize on strong AI data-center demand. AXT ended the second quarter with $748.8 million in cash, cash equivalents and investments, up $625.6 million sequentially, primarily following its April secondary offering, which generated approximately $632 million before expenses. This strengthened liquidity provides financial flexibility to expand its manufacturing footprint. The timing is favorable because InP demand continues to exceed supply. AXT has committed to doubling InP capacity in 2026 and is ahead of schedule while planning another expansion in 2027. Its InP backlog has surpassed $100 million, providing visibility into future demand. Customer commitments further strengthen the outlook, with long-term agreements including Casela, Coherent, and Lumentum, the latter reserving InP capacity through 2031. AXT's second-quarter revenues reached a record $47.6 million, while GAAP gross margin climbed to 44.9%. The Zacks Consensus Estimate projects 2026 and 2027 revenue growth of 146.4% and 108.4%, respectively. However, competitive pressure is rising as Coherent and Lumentum expand their own InP production, potentially reducing reliance on AXT. AXT shares have skyrocketed 325.4% year to date, and the stock carries a Zacks Rank #1 (Strong Buy).
AMD Targets $70 Billion Data Center Revenue by 2027
Advanced Micro Devices Inc. rose 6.35% intraday after management told Citi's Global TMT Conference that its data center business should double in 2027 to around $70 billion, with AI GPUs contributing in the low $40 billions and server CPUs the rest. Executives put the AI market at $2 trillion by 2030, spanning training, inference, enterprise computing and agentic work. AMD named Anthropic alongside Meta Platforms Inc. and OpenAI as its three anchor customers, each tied to multi-gigawatt deployments across multiple product generations. The company has $29 billion to $30 billion in purchase commitments and said it received the largest allocation increase Taiwan Semiconductor Manufacturing Co. gave any customer. Supply remains tight across wafers, HBM memory, advanced packaging and substrates, and AMD said gross margin may edge lower in the fourth quarter and through 2027 as the MI450 ramps, with the focus on gross profit dollars instead of percentage. Server CPU TAM went to more than $220 billion by 2030 from a $60 billion estimate given last November. AMD also completed its acquisition of Taalas, adding chiplet-based silicon for ultra-low-latency inference.
China Imposes Anti-Dumping Measures on Chip Material from Japan
China's Ministry of Commerce has announced anti-dumping measures on imports of dichlorosilane from Japan, a chemical used in semiconductor manufacturing. Importers will be required to place deposits at rates up to 99.2%, effective from today (September 8). Although the measures target a specific product, they signal an escalation of diplomatic tensions between China and Japan stemming from last year's Taiwan issue. Japanese Chief Cabinet Secretary Minoru Kihara said the government will closely monitor the measures and work with businesses to prevent severe impacts. Shares of Chinese companies involved in dichlorosilane production rose, led by Tangshan Sunfar Silicon Industry Co., which hit the 10% daily limit on the Shanghai Stock Exchange. Meanwhile, Japan's Shin-Etsu Chemical Co. fell 1.5%, with a spokesperson saying the measures will not affect the company's revenue as dichlorosilane accounts for only a small portion of its overall business. The diplomatic conflict between China and Japan began in November 2025 after Japanese Prime Minister Sanae Takaichi suggested sending troops to intervene if China attempted to take Taiwan by force. The latest move comes ahead of Takaichi's expected visit to the United States this month, while President Xi Jinping is scheduled to meet President Donald Trump at the White House on September 24.
TSMC's 67.7% Margin Spurs Solvay to Double Taiwan Peroxide Capacity
Taiwan Semiconductor Manufacturing, the world's dominant contract chipmaker, is getting a supply-chain boost as Solvay plans to more than double Taiwan's annual production capacity for ultra-pure hydrogen peroxide from 35,000 tonnes to over 70,000 tonnes by year-end, Reuters reported Thursday. The electronic-grade chemical is used to clean wafers, where microscopic contaminants can destroy complex circuitry. Solvay is scaling its Tainan joint venture and targeting a threefold expansion of its global electronic-grade peroxide business within five to seven years. TSMC's second-quarter results delivered $40.2 billion in revenue, a 67.7% gross margin, and a 60.3% operating margin, and suppliers rarely double capacity without seeing serious demand ahead. However, TSMC's share price of $411.3263 sits 27.52% above its GF Value of $322.57, indicating investors already expect near-flawless execution.
Four U.S. Companies to Invest $2 Billion in South Korea in Semiconductors and Energy
South Korea's Ministry of Trade, Industry and Energy announced on the 4th that four U.S. companies have decided to invest a total of $2 billion in South Korea in the fields of semiconductors, advanced materials, and energy. The investments were announced at a ceremony attended by Trade Minister Cheong In-kyo in Washington on the 3rd. U.S. industrial gas giant Air Products will expand facilities for semiconductor gases and rare gases in Pyeongtaek, Gyeonggi Province, and semiconductor equipment maker Axcelis will expand its production of ion implantation equipment in South Korea. Additionally, materials giant Corning will invest in advanced glass and other materials used in displays and semiconductors, and renewable energy developer Pacifico Energy will proceed with a 3.2-gigawatt offshore wind power project in the southwest, where a new semiconductor cluster is expected to be established.
5N+ Wins US$7.3M Award for Domestic GaAs Production
5N Plus Inc. has been selected by the U.S. Department of War to receive a US$7.3 million award to establish domestic production of gallium arsenide components for U.S. defence applications, following its presentation at the inaugural Defense Industrial Base Accelerator Pitch Competition in Philadelphia. The award addresses a critical supply chain gap, as there is currently no qualified domestic source of GaAs electro-optical components, and will support production at 5N+'s facility in St. George, Utah. The company plans to expand its Utah operations with crystal-growth and GaAs compounding equipment, and will work with initial customer Lockheed Martin to complete product qualification before moving to low-rate production. The capabilities developed could also support future production of GaAs substrates and other advanced materials for defence and space applications, broadening 5N+'s addressable market.
Broadcom forecasts $58B fiscal 2026 AI revenue and outlines $115B in 2027, $230B in 2028
Broadcom reported record fiscal Q3 results and raised its full-year AI revenue outlook, forecasting $58 billion for fiscal 2026, up 186% year-over-year and above prior guidance of $56 billion. The company also outlined plans to double AI revenue to approximately $115 billion in fiscal 2027 and again to $230 billion in fiscal 2028, with CEO Hock Tan citing secured supply and line of sight for growth. In the quarter, AI semiconductor revenue more than tripled year-over-year to $16.7 billion, driven by six XPU customers, including the shipment of OpenAI's first-generation custom accelerator, Jalapeno. Consolidated revenue hit a record $29.6 billion, up 86% year-over-year, with non-GAAP EPS of $3.32, up 96%. For Q4, Broadcom expects AI revenue of $21.7 billion, up 236% year-over-year, and total revenue of $34.8 billion. Management highlighted supply-chain constraints in wafers, substrates, and HBM memory as key gating factors, and noted that Anthropic is on track to become its largest XPU customer in 2027.
US awards Alcoa $174M for Australian gallium plant
The U.S. Department of War will provide $174 million in financing to Alcoa Corp. to build a gallium plant at its alumina refinery in Western Australia, as Washington moves to reduce reliance on China for critical minerals. Gallium is essential for high-performance semiconductors used in defense technologies, and China controls about 98% of global production, having banned direct exports to the U.S. in 2024. Alcoa has begun construction on the Wagerup facility, expected to produce roughly 100 tons of gallium annually, in partnership with Japan's Sojitz Corp. and JOGMEC. Assistant Secretary of War Michael Cadenazzi called the agreement landmark, securing vital supply for the defense industrial base.
Kanghui Co. Subsidiary Signs 1.72 Billion Yuan Computing Power Deal; Accelink Technologies Sees 253 Million Yuan Net Institutional Buying
Kanghui Co.'s wholly owned subsidiary Beijing Kanghui Zhichuang signed a Computing Power Service Contract with Client Company A, with a total contract value of approximately 1.72 billion yuan including tax, for a term of five years. Computing power delivery will be implemented in batches from the end of the third quarter of 2026 through the end of the first quarter of 2027. Trading disclosure data from September 16 shows Accelink Technologies saw net institutional buying of 253 million yuan, accounting for 3.42 percent of total turnover. Luozhou Co. saw net institutional buying of 44.4196 million yuan, accounting for 6.03 percent of total turnover. Huawei disclosed that its next-generation Ascend supernode will soon be officially launched, targeting large-scale data center construction, trillion-parameter large model training, and high-concurrency inference scenarios. According to media reports, Japan's JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical, and others announced that starting October 1, 2026, new pricing for photoresist for global customers will be raised by 15 percent overall, with high-end ArF series long-term contract quotes raised by 16 to 22 percent, and HBM-specific immersion ArF raised by up to 24 percent. In addition, Deye Co. plans to repurchase shares for 100 million to 200 million yuan, with a repurchase price not exceeding 133 yuan per share. Henggong Precision plans to issue convertible bonds of no more than 810 million yuan for projects including embodied intelligent robots.
AI Infrastructure Spending to Boost Plastics in Electronics Market
A new report from BCC Research finds that planned AI infrastructure spending of approximately $650 billion in 2026 is increasing demand for advanced engineering plastics used in servers, semiconductor packaging, connectors, and thermal systems, while AI simultaneously transforms polymer R&D and manufacturing efficiency. The report, titled "AI Impact on Plastics in Electronics Components Market - BCC Pulse Report (AIT214A)," highlights that hyperscale AI data center buildout is the defining demand catalyst, with Alphabet, Amazon, Meta Platforms, and Microsoft collectively planning the $650 billion in spending. NVIDIA's expected Q2 2026 data center revenue of up to $75.2 billion illustrates the scale of compute hardware deployment driving materials demand. Semiconductor reshoring, including TSMC's additional $100 billion commitment to U.S. chip facilities and Texas Instruments' $60 billion expansion, along with $1.4 billion in U.S. government CHIPS Act support, underpins sustained demand for ultra-clean engineered polymers. The report also notes that AI-enabled automotive electrification, factory automation, and digital twin-driven injection molding optimization are creating new plastics use cases, with key players including BASF, Celanese, Covestro, SABIC, and others. For investors, the structural alignment between AI infrastructure capital deployment and engineered plastics demand presents a multi-year opportunity, though risks include demand volatility and concentration of spending among a few hyperscalers.
Japan to Submit Record 7.8 Trillion Yen Budget to Boost AI, Chips, and Rare Earths
Japan's Ministry of Economy, Trade and Industry is considering proposing a record budget of 7.8 trillion yen, or about 49 billion dollars, for fiscal year 2027 to accelerate investment in semiconductors, artificial intelligence (AI), and other strategic industries, which are central to the government's economic drive under Prime Minister Sanae Takaichi. The budget is part of a plan for 370 trillion yen in public and private investment in key industries over 14 years. Within the 7.8 trillion yen, the ministry will allocate 6.31 trillion yen to the Strong and Prosperous Japan Investment Framework, including 2 trillion yen for developing AI, semiconductors, and robotics, and another 680 billion yen for security of critical minerals, including rare earths. Meanwhile, 220 billion yen is for enhancing naphtha supply capabilities, and 180 billion yen for upgrading defense and dual-use technology capabilities, jointly with the Ministry of Defense. This budget allocation reflects the geopolitical and economic security challenges Japan faces, including technological competition among major powers, oil supply impacts from the war in Iran, and China's use of rare earths as a bargaining tool.
Tri Chemical Laboratories Raises Full-Year Net Profit Forecast to 6.5 Billion Yen
Tri Chemical Laboratories, a semiconductor chemicals maker, announced on the 31st that its consolidated net profit for the fiscal year ending January 2027 is expected to rise 19.1% from the previous year to 6.5 billion yen. The company raised its forecast from the previous 4.6 billion yen, citing the expansion of the semiconductor market. This exceeds the consensus forecast of 5.9 billion yen from five analysts compiled by IBES. The company also revised upward its sales forecast to 29.5 billion yen, up 23.5% year-on-year, and operating profit to 7.4 billion yen, up 26.2%.
Thailand accelerates photonic chip development for AI growth, BOI applications reach 82.7 billion baht
The Thai government is pushing forward with the development of the photonics industry, or optical chips, to support the growth of AI and data centers. Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, revealed that from 2021 to June 2026, 79 projects have applied for BOI promotion, with a total value exceeding 82.7 billion baht, covering the production of optical fiber, optical communication equipment, and high-speed optical transceivers. The government aims to increase the country's total investment share from 23-24% to 30% of GDP to drive Thailand's economy to grow by 3%. Data from the Office of National Higher Education, Science, Research and Innovation Policy Council (NXPO) indicates that Thailand has the potential to build on its PCB and PCBA manufacturing base to produce high-value components. The government is also accelerating the development of human resources to support the semiconductor industry, targeting over 100,000 people within 5 years, while opening opportunities for SMEs to enter the supply chain.
Solstice Advanced Materials, a U.S. advanced materials company, and Element Solutions, a U.S. specialty chemicals company, agreed on the 27th to withdraw their $14.5 billion merger plan. The decision came after shareholders expressed a desire for the companies to remain independent, and no termination fees will be incurred. Solstice had announced the merger in July, ten months after its spin-off from Honeywell, and amid surging semiconductor demand, the combination was expected to create a leading supplier. Solstice Chairman Rajeev Gautam said the company respects shareholders' views, and the board approved its first share buyback plan of up to $500 million. In after-hours trading, Solstice shares rose 15% and Element shares rose 4%.
Zhongjing Technology's first-half net profit attributable to parent rises 61.5% to 41.56 million yuan
Zhongjing Technology released its 2026 half-year report. Net profit attributable to the parent in the first half rose 61.5% year on year to 41.56 million yuan, while operating revenue was 268 million yuan, up 23.3%. In the second quarter, operating revenue was 149 million yuan, up 27.4% year on year, and net profit attributable to the parent was 27.71 million yuan, up 48.4%. As of the end of the second quarter, total assets were 1.293 billion yuan, up 3.2% from the end of the previous year, and net assets attributable to the parent were 683 million yuan, up 2.4%. The company focuses on semiconductor monocrystalline silicon materials and related products. It has obtained key customer certification for monocrystalline silicon wafer projects used in high-end discrete devices and very large scale integrated circuits, entered the volume delivery stage, and has sufficient orders. Jiangsu Gaoxin's new plant equipment installation and commissioning have been completed, and it is now in the stage of product certification for the new production line and output ramp-up.
Huahai Chengke's first-half net profit attributable to parent rises 188.1% year on year to 39.68 million yuan
Huahai Chengke released its 2026 interim report. In the first half, operating revenue was 469 million yuan, up 161.8% year on year; net profit attributable to the parent was 39.68 million yuan, up 188.1% year on year; net profit attributable to the parent after deducting non-recurring items was 36.69 million yuan, up 188.9% year on year; net operating cash flow was 11.13 million yuan, up 507.5% year on year; and earnings per share were 0.277 yuan. In the second quarter, operating revenue was 246 million yuan, up 158.4% year on year, and net profit attributable to the parent was 26.16 million yuan, up 298.4% year on year. As of the end of the second quarter, total assets were 3.052 billion yuan, down 3.4% from the end of the previous year, and net assets attributable to the parent were 2.264 billion yuan, up 4.2% from the end of the previous year. The company said the increase in operating revenue was driven by newly consolidated subsidiaries and an increase in sales orders. Its main products include epoxy molding compounds and electronic adhesives, which are used in semiconductor packaging and board-level assembly, among other areas. It has also made phased progress in advanced packaging and storage, and multiple high-end products have completed customer-side testing and verification and entered volume supply.
AI4Chip policy and Nvidia earnings resonate, Science and Technology Innovation Chip ETF Southern closes up 4.55%
The implementation of the AI4Chip policy, combined with Nvidia's earnings beating expectations and confirming computing power demand, drove the Science and Technology Innovation Chip Index tracked by Southern Fund's Science and Technology Innovation Chip ETF Southern, ticker 588890, to close up 4.55% yesterday. As of the close on August 27, 2026, the ETF's turnover rate was 4.09%, with a trading volume of 152 million yuan. On the policy front, the Beijing Economic-Technological Development Area issued the nation's first AI4Chip special action plan, using five major actions and 20 tasks to promote AI empowerment in chip design, EDA tools, and manufacturing. On the same day, Shanghai issued its 15th Five-Year Plan for new industrialization, clearly targeting the entire chain in integrated circuits. On the industry front, Nvidia's second-quarter revenue reached 96.2 billion dollars, up 106% year on year, with data center revenue of 89 billion dollars, up 117% year on year. Its third-quarter guidance of 108 billion dollars exceeded expectations, confirming global AI computing power demand. In addition, price increase signals in semiconductor materials are clear, with silicon wafer prices up 18% to 22%, tungsten hexafluoride exceeding 3.15 million yuan per ton, and target materials up as much as 70%. The industry is currently at a critical juncture as AI computing power demand spreads from the training side to the inference side, with domestic AI accelerator card shipment share already rising to 41%, and Goldman Sachs predicting it could exceed 50% in 2026.
Xinlai Yingcai's net profit fell 7.52% year-on-year in the first half of 2026
Xinlai Yingcai released its semi-annual report for 2026, achieving operating revenue of 1.546 billion yuan, up 9.69% year-on-year; net profit attributable to shareholders of the listed company was 99.9597 million yuan, down 7.52% year-on-year. During the reporting period, benefiting from the acceleration of domestic substitution in semiconductors and the expansion of domestic wafer fabs, the company's new orders across its pan-semiconductor product lines improved, downstream demand was strong, and orders in hand were full, achieving pan-semiconductor operating revenue of 565 million yuan, up 28.12% year-on-year. Among them, net profit in the second quarter was 47 million yuan, and 53 million yuan in the first quarter; based on this calculation, net profit in the second quarter fell 10% quarter-on-quarter.
AXT Expands Supply Agreements to Boost Revenue Visibility
AXT, Inc. is expanding its supply agreements with major customers, improving visibility into future InP shipments and potentially supporting revenue growth. The company's second-quarter 2026 results showed backlog exceeding $100 million, with coverage extending into 2027 through both backlog and long-term supply agreements. AXT's agreements with Casela and Coherent further reinforce this pipeline: Casela committed to approximately $25.4 million of InP wafer purchases for 2027, with at least 80% of the committed quantity subject to purchase, while Coherent agreed to a three-year development and supply arrangement for 6-inch InP wafers, backed by a $22.3 million prepayment. In July, AXT signed a long-term agreement with Lumentum covering minimum annual InP capacity commitments through December 2031, with an initial $43.5 million deposit and a second $43.5 million deposit to be determined during 2028. These agreements are particularly meaningful because customer demand already exceeds AXT's available InP capacity, while the company is expanding production and developing higher-value 6-inch substrates. According to the Zacks Consensus Estimate, AXTI's revenues are projected to reach $217.6 million in 2026. The expansion of supply agreements could further enhance revenue visibility, as it will boost production capacity and convert contracted demand into actual shipments.
Daqo Cuts Losses While Betting on AI Power Infrastructure
Daqo New Energy reported second-quarter earnings on August 20, showing narrowed losses but continued sales below production cost, while management highlighted a new pivot toward AI power infrastructure and semiconductor-grade polysilicon. Revenue rose to $62.7 million from $26.7 million in the first quarter, gross loss narrowed to $82.7 million from $139.4 million, and net loss improved to $81.2 million from $88.4 million. The company holds zero debt and $1.92 billion in liquidity, which supports its patience through the downturn. Daqo joined seven other polysilicon manufacturers on August 6 in an initiative to stop below-cost sales, and a new national energy standard effective January 1, 2027, is expected to force noncompliant plants to shut down. On June 3, Daqo announced an investment agreement to build a manufacturing base for AIDC power infrastructure, including energy storage systems and solid-state transformers, and it is targeting a semiconductor-grade polysilicon market where it sees global demand of 75,000 tons against supply of 57,000 tons. However, the average selling price fell to $4.04 per kilogram from $5.96, while production cost stayed at $5.95 per kilogram, resulting in a negative 132% gross margin. Cash used in operating activities for the first half of 2026 reached $276.2 million, more than double the $105.4 million a year earlier. Management acknowledged that the qualification cycle for semiconductor-grade polysilicon is taking longer than expected, and the AIDC effort is still small, with only $30 million to $40 million earmarked for 2026.
Jingrui Electric Materials 2026 Interim Report: Revenue up 23.59%, net profit attributable to parent down 29.53%
Jingrui Electric Materials released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 949 million yuan, up 23.59% year on year, but net profit attributable to the parent company was 49 million yuan, down 29.53% year on year, showing a pattern of rising revenue without rising profit. Non-GAAP net profit was 45 million yuan, up 36.49% year on year, indicating stronger profitability in the core business, but net profit attributable to the parent company fell significantly due to fluctuations in the fair value of trading financial assets and declining gross margins for some products. Net operating cash flow was 43 million yuan, a sharp drop of 75.20% from 173 million yuan in the same period last year, mainly because cash paid for purchasing goods and receiving services increased. By business segment, semiconductor industry revenue was 552 million yuan, accounting for about 58% of the total. Within this, high-purity chemicals revenue was 544 million yuan, up 20.69% year on year, while gross margin fell 3.92 percentage points year on year. Photoresist business revenue was 122 million yuan, up 15.15% year on year, with sales volume and revenue of high-end ArF photoresist surging nearly 300% year on year, and KrF photoresist sales volume growing more than 40%. Lithium battery materials revenue was 125 million yuan, up 19.22% year on year, with gross margin up 9.65 percentage points. Industrial chemicals revenue was 126 million yuan, up 70.75% year on year, with gross margin up 13.08 percentage points. The company said the global semiconductor industry continues to recover driven by AI computing demand, and capacity expansion at domestic wafer fabs is expected to boost demand, but it is necessary to guard against risks such as fading policy dividends for new energy vehicles and raw material price fluctuations.
Zhengfan Technology's H1 revenue up 10.56%, net loss attributable to parent nearly 50 million yuan
Zhengfan Technology's 2026 interim report shows first-half operating revenue of 2.23 billion yuan, up 10.56% year on year, but net loss attributable to the parent was 49.99 million yuan, down 153.05% year on year, and net loss attributable to the parent after deducting non-recurring items was 110 million yuan, down 287.74% year on year. The company attributed the loss mainly to previously signed low-margin orders still being delivered, dragging down overall gross margin, while financial expenses and asset impairment losses increased year on year. Non-recurring gains and losses in the reporting period reached 60.40 million yuan, including government subsidies of 26.38 million yuan and fair value changes in financial assets of 39.09 million yuan, partially offsetting losses in the main business. In terms of business structure, OPEX-type business rose from 37% last year to 60%, with semiconductor equipment components revenue jumping from 15% to 32%, gases and advanced materials accounting for 18%, and professional operations and maintenance at 10%; CAPEX-type equipment business shrank accordingly. New semiconductor orders accounted for 77%, with new orders in the first half reaching 3.23 billion yuan, up 62% year on year. On the expense side, financial expenses were 76.20 million yuan, up 132.09% year on year, research and development expenses were 143 million yuan, down 11.17% year on year, and selling expenses were 59.40 million yuan, up 24.16%. At the shareholder level, director and general manager Shi Kecheng reduced his holdings by a net 688,900 shares, vice president Zheng Hongliang reduced his holdings by a net 550,000 shares, core technical personnel Li Dongsheng reduced his holdings by a net 271,900 shares, and Yu Feng reduced his holdings by a net 300,000 shares.
Fujing Technology's first-half net profit attributable to parent reaches 181 million yuan, up 41% year on year
Fujing Technology released its 2026 interim report. Net profit attributable to the parent in the first half was 181 million yuan, up 41.0% year on year, while operating revenue was 724 million yuan, up 39.5% year on year. In the second quarter, operating revenue was 399 million yuan, up 42.7% year on year, and net profit attributable to the parent was 115 million yuan, up 47.5% year on year. As of the end of the second quarter, total assets stood at 3.2 billion yuan, up 30.8% from the end of the previous year, and net assets attributable to the parent were 1.897 billion yuan, up 7.6% from the end of the previous year. The company continues to focus on the laser and optical communications sectors. Benefiting from growth in optical communications market demand driven by artificial intelligence and high-bandwidth data center construction, its laser device products are gradually breaking the monopoly of overseas manufacturers.