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#

Samsung Electronics 2Q26 Earnings Call Q&A Q. What is the current foundry utilization rate? A. Utilization rates have improved across all process nodes. At advanced nodes of 8nm and below, we have maximized sales on strong demand from high-growth applications, and utilization has reached peak levels. Regarding yields, based on our mass-production experience with the first-generation 2nm process, we will begin the full-scale ramp-up of our second-generation 2nm process in the second half of the year. We continue to stabilize yields and improve productivity through process optimization. In terms of profitability, the combined effects of higher utilization, improved yields, and price increases have driven a significant year-over-year improvement, and the recovery is now gaining momentum. As for the timing of a return to profitability, the order-based nature of the foundry business makes it difficult to provide a precise timeframe. However, we expect to achieve a turnaround in the near future. Q. What are Samsung’s foundry capacity-expansion plans? A. The pace of advanced-node capacity expansion has not been sufficient to keep up with demand. To address this, preparations for the Taylor Fab 1 to commence operations in 2026 are progressing as planned. We intend to expand our 2nm capacity in phases. To respond to growing customer demand in a timely manner, we are also preparing to begin construction of Taylor Fab 2 by the end of this year, targeting mass production in 2030. In addition, as customer inquiries regarding the 1.4nm process increase, we are reviewing the possibility of securing an additional fab. Detailed plans will be developed in phases based on customer orders and the outcome of ongoing discussions. For mature nodes, we are shifting toward a higher-margin business mix and concentrating our capabilities on demand for high-value-added specialty products. Specifically, we are expanding capacity for 8nm, 17nm, CIS, and embedded nonvolatile memory, or eNVM, where demand is increasing. We are also focusing on areas such as integrated silicon capacitors and silicon photonics.

Samsung Electronics 2Q26 Earnings Call Q&A Q. Could you provide an update on LTAs? A. Regarding multi-year memory supply agreements, demand for securing medium- to long-term AI service infrastructure is surging, while the market increasingly expects the memory supply shortage to persist for an extended period. As a result, many customers are requesting LTAs. These customer requests align with our objective of hedging medium- to long-term business risks. We are therefore prioritizing negotiations with customers that have firm future demand and are capable of entering into agreements with strong, mutually binding commitments to contract performance. However, customers are requesting additional supply across both DRAM and NAND, while market prices continue to rise. With virtually every customer seeking an LTA, it is difficult to accommodate all supply requests within our available capacity. To maintain sufficient supply flexibility to serve customers outside multi-year agreements, we plan to allocate approximately 60–70% of our total capacity to LTAs. Additional customers are seeking LTAs, while some customers that have already signed agreements are requesting increased volumes. To provide further detail, our LTAs generally have a five-year base term and follow a rolling structure under which additional periods are added through negotiations in subsequent years. By establishing a five-year rolling-contract structure and securing a certain proportion of our business through committed orders, we expect to achieve a more stable business model. We have already completed agreements with five major global data center customers and are in the final stages of negotiations with five additional large customers. We expect the number of LTA customers to increase over time. Once the agreements currently under negotiation are finalized, we expect LTA volumes to comfortably reach 60–70% of our medium- to long-term production plans for both DRAM and NAND. We also plan to discuss additional contract requests and are reviewing various medium- to long-term capacity-expansion scenarios. To strengthen the binding nature of these multi-year supply agreements, the contracts include substantial advance payments that are held over multiple years. We have already received approximately one-quarter of the agreed advance payments, and the total amount is expected to increase as additional agreements are signed. We ask for your understanding that we cannot disclose the amount of the advance payments due to confidentiality agreements with customers. Regarding the contract model, the agreements incorporate pricing mechanisms designed to offset future risks to an appropriate degree. Product pricing varies depending on each customer’s product portfolio, and contract terms are determined through mutual consultation with customers. For commodity products, pricing is structured to sufficiently hedge future investment risks arising from fluctuations in market prices. Our core principles are to secure medium- to long-term demand visibility, support the healthy development of the AI industry, and maintain a balanced customer portfolio. These principles are also reflected in our LTAs. Given the memory industry’s longstanding pattern of repeated upturns and downturns, expanding the proportion of business covered by LTAs should significantly improve our business stability and visibility. We will continue to expand our portfolio of AI applications with strong medium- to long-term demand visibility and maintain our leadership in the memory market.

Samsung Electronics Q2 Earnings Call Q&A Q. What is the supply mix between HBM and conventional DRAM? As stated during our previous earnings call, we manage our product mix independently of differences in profitability, with a focus on capturing AI-driven demand. We are applying the same approach to the growing demand for HBM. In particular, customer qualification for HBM4—a product drawing significant market attention—has progressed smoothly. We are rapidly expanding supply in line with customers’ ramp-up schedules in the second half of the year. Supported by increased 1c capacity and improved yields, we continue to expand our supply capabilities. As a result, HBM4 revenue in the third quarter is expected to more than triple quarter over quarter. For the second half as a whole, HBM4 is expected to account for well over 60% of our total HBM revenue. During the second half, we expect to increase our HBM market share to a level comparable to our overall DRAM market share, thereby achieving a balanced DRAM portfolio. (Translator’s note: Does this imply that Samsung expects to overtake SK hynix and become the No. 1 player in HBM market share?) Looking ahead to next year, we believe we have sufficient product competitiveness, based on the outcome of supply discussions with customers for 2027—which have already been completed—and our technological capabilities, as demonstrated by the industry’s first sampling of HBM4E. That said, we will continue to monitor the explosive growth in demand for general-purpose computing driven by agentic AI, as well as the relative growth of HBM and server DRAM. We will maintain an optimized product-mix strategy, targeting similar market-share levels in HBM and conventional DRAM to ensure a balanced portfolio.

Samsung Electronics Q2 Earnings Call Q&A Q. Is Samsung considering an ADR listing? An ADR listing would go beyond simply listing shares in an overseas market, potentially providing benefits such as access to capital and a broader investor base. However, it would also require a comprehensive assessment of factors including additional disclosure and operational burdens. ADRs involve a limited portion of a company’s shares being traded in a separate market, which could create valuation discrepancies between the ADRs and the underlying shares depending on liquidity and supply-demand conditions. We must carefully assess whether such a move would benefit all shareholders who have placed their trust in the company and invested in it over the long term. Given our cash-generation capabilities supported by a diversified business portfolio, the need for an ADR listing is currently not particularly high. Although some media reports have raised the possibility of a U.S. listing, we are not currently considering issuing ADRs. That said, from a mid- to long-term perspective, we remain open to considering it as one of various potential options. Q. Could you provide an update on major foundry customers? Regarding the Foundry Business’s advanced-node order activity in the second quarter, we secured 2nm projects from a major CSP customer and HPC customers. These customers have begun product design work. We are also discussing projects with major customers, including Broadcom, and discussions regarding advanced-node orders are expanding. Building on this order momentum, we expect the number of 2nm projects secured in 2026 to more than double year over year.

SAMSUNG ELECTRONICS JUST REPORTED Q2 EARNINGS - Revenue of $118.05B missing expectations of $119.19B 🔴 (+130% YoY) - Operating profit of $61.72B beating expectations of $60.84B 🟢 (+1,813.8% YoY, a record) - Operating profit up 56.37% quarter over quarter; revenue up 28.11% quarter over quarter

Samsung Electronics won a contract worth more than $200 billion to make chips for Broadcom $AVGO The pact, to run for five years through 2030, will focus on Samsung’s 2-nanometer and below process technologies for Broadcom’s products - Bloomberg