Yageo, Taiwan’s biggest passive component maker, said demand for AI server components remains 'very, very strong', leading some customers to pay a premium to secure supply and sign Long Term Agreements (LTAs), media report, adding Yageo raised prices in the 2nd quarter to keep pace with rising materials costs, and may have to raise prices again. #Yageo# #TaiyoYuden# #SamsungElectroMechanics#

AI server giant Quanta Computer plans to raise up to US$2.2 billion (NT$71.2B) through a GDS (Global Depositary Share) offering in Luxembourg, media report, the biggest overseas fundraising by a Taiwan firm in nearly 20-years, media report, with the funds to be used for factory construction, component and materials purchases, more. $NVDA $AMZN $GOOGL $MSFT $META #Quanta# #AIservers#

Delta Electronics, the power electronics giant, will spend NT$70 billion (US$2.2B) on capex this year, up from NT$46 billion last year and sees the 2nd half of the year even better than the first half. Mass production of 800V DC equipment is expected to begin in the 3rd quarter, said Chairman Ping Cheng, also: “The wave of AI data center construction will not stop.” #DeltaElectronics# #DC#

UMC, Taiwan’s 2nd biggest chip foundry, has raised its capex to US$2 billion from $1.5 billion as it expands production in Singapore and Tainan, south Taiwan, media report. UMC will expand cleanroom capacity of its Phase 4 facility in Singapore and build a new fab in Tainan. Construction of the new fab is expected to take 20-months. UMC also said it plans to spend at least $5 billion over 3-years, including the $2B this year. $UMC $AMAT $ASML $LRCX $KLAC #semiconductors#

TSMC’s US$100 billion addition to its US investment plans – now totaling $265 billion – will expand TSMC Arizona to 12 fabs, but the market fears the move will hurt profitability, media report, noting construction costs are 4 to 5 times higher than Taiwan (from TSMC’s CFO). The fear is TSMC’s gross margin may fall below 65%, given margin pressure from ramping 2nm (3-4 percentage points) and overseas fab investments (2-3 percentage points). The report argues such worries are overdone. TSMC is playing the long game, building critical AI infrastructure for the long haul – with capex raised to $60-$64B from $52-$56B previously, and it takes 5-years years for advanced fabs to ramp up to mass production, from the initial groundbreaking. Operationally, mass production at TSMC Arizona means costs go down as fabs ramp up through volume and efficiency gains. Production lines improve as workers better understand their jobs; construction improves the same way. $TSM #semiconductors#

AEMC (Advanced Echem), a specialty chemical maker and key TSMC supplier, will invest NT$4.52 billion (US$140M) on a new chemical plant and R&D lab in the Longtan Science Park in north Taiwan due to strong demand, media report. AEMC’s top products are used in 2nm production and advanced packaging (Photoresist, EBR, BARC, 2D/3D wafer-level packaging materials, more). $TSM #semiconductors#

TSMC and other high energy users may soon see costs rise: Taiwan lawmakers will on Wednesday (7/22) review a proposal to require major electricity consumers (TSMC is the biggest) to install their own power supply for 5MW or more power contracts, media report, noting around 400 companies in semiconductors, AI data centers, optoelectronics, and more will be affected. The idea is to avoid straining Taiwan’s power grid. $TSM $UMC $ASX $BE $GE #semiconductors#

UMC, Taiwan’s 2nd biggest chip foundry, is looking to expand a fab in south Taiwan due to an overflow of advanced packaging and specialty AI-related orders (silicon interposers, DTC) from Qualcomm, Intel and SanDisk, media report, noting new plans for UMC’s Fab 12A P7 near Tainan, Taiwan, are under evaluation. Orders for power management chips (PMICs) for AI products are also booming. UMC is working with Qualcomm on silicon interposers, DTC (deep trench capacitors), and wafer-to wafer hybrid bonding, while Intel and UMC have partnered on 12nm FinFET, and the UMC-SanDisk cooperation is for memory chip stacking. The story cites unnamed industry sources. $UMC $QCOM $SNDK $INTC #semiconductors#