Summary of MTK (2454 TT): NVDA’s $3.5bn investment + intact TPU progress 📈 Nvidia to invest $3.5bn in MediaTek via its $3.9bn CB. Alphabet also participating in the CB. * This marks Nvidia’s first investment in a Taiwan-listed company. * Nvidia/MTK expanding collaboration across AI infrastructure, local AI and automotive. * MTK to adopt NVLink Fusion for custom XPU integration. * Collaboration spans NVLink/NVLink-C2C, NVHBM, advanced packaging and SerDes. * MTK/Nvidia aim to provide chip-to-“””rack infrastructure”””, not just silicon. 🐟 Humufish EMIB progress is better than feared. * Japanese substrate suppliers’ yields improved from 20–25% → ~45% on recent testing vehicles. * Yield remains on track toward the first-stage 55–60% target. * Humufish lifecycle volume appears revised up, not cut. * Foe now, We maintain 4.6m Humufish/Triggerfish units in 2028E. * Triggerfish’s large SRAM should help MTK expand into AI inference. We expect MTK to gain TPU share across volume, value and workloads. 🤝Nvidia + Alphabet backing reinforces confidence in MTK’s datacenter trajectory. 📈 Remain positive #NVDA# #GOOG# #TPU# #Mediatek#

Abstracts of UMC (2303 TT, UMC) Acceleration in PIC/TFLN（薄膜铌酸锂 Thin‑Film Lithium‑Niobate） 📈 Buy | TP lifted to NT$160 - PIC/TFLN upside unlocks a higher-margin cycle • High-margin PIC business acceleration mainly driven by:
– Hyperlight (could have made significant progress with Google)
– TeraHop (key customers: Nvidia, GOOG) • TFLN 8” Wafer shipment expectations:
– 20k wafers/month by 4Q27
– 40k wafers/month by 4Q28 • PIC economics far superior to corporate average with Gross margin >70%, ASP ~$2.5k per 8” wafer (vs Normal 8” ASP below $1k), Expected EPS contribution of NT$0.7 in 2027 and NT$1.5 in 2028 • That said, TFLN will help UMC shift its product mix toward higher-value AI segments (including optics) • Possibility remains open for UMC to extend its PIC wafer business into packaging over the mid/long term In addition to PIC/TFLN, • UTR expected to keep rising, driven by: AI (incl. optics), CIS / ISP
and DDIC (benefiting from Apple moving Mac from 8” to 55nm) • Although the market has less appetite for the price-hike theme, visibility has been extended to 2H27 • Intel collaboration: Management earlier reiterated the partnership remains on track Tape-out targeted for 2027 on Intel 12, and we now expect the Capacity to be more than one phase #UMC# #PIC# #SiPh# #TFLN# #NVDA# #CPO#

Earnings Takeaways - MTK (2454 TT) * 2Q26 revenue NT$152.2B (+2% QoQ, +1% YoY) was above guidance. * 2Q26 GM/EPS in line: 46.2% GM; EPS NT$15.28. * Smart Edge +19% QoQ, offsetting smartphone weakness. * 3Q26 guide: Revenue NT$152.2–159.8B (flat to +5% QoQ) better than recent broker’s -5% but inline with us * 3Q26 GM: 46.0% ±1.5%, inline. * Maintain Buy: TP NT$6,420 * ASIC guidance raised: 2026 from $2B to >$2B. * 2027 ASIC share target: Raised to 15–20% (from 10–15%). * We estimate Zebrafish shipments to be 2–3 months earlier than Sunfish * MTK’s Triggersfish to drive inference share gains with larger SRAM (4x 250MB) in 2028 * Reit SpaceX is the likely 2nd datacenter ASIC customer * We est. MTK’s Icefish is by now the only official v10 project. * Smartphone better than feared; 2nm SoC to drive share gains in Android’a Ultra models #MTK# #Mediatek#