AI rack power density is entering a new era. OCP’s M+ Diablo architecture introduces a ±400V DC sidecar to support rapidly rising AI power requirements. With Google, Meta, and Microsoft contributing, data-center power architecture is shifting from a supporting function to a critical bottleneck—and competitive advantage—for AI infrastructure.

AI compute is going to orbit. 🚀 @SpaceX’s Starmind AI1 satellite compute payload is powered by NVIDIA Vera Rubin NVL72, bringing AI factory compute closer to the stars. The next chapter of AI infrastructure boldly goes where no AI compute has gone before.

Japan, Yen Defense, and the U.S. Long End Bessent’s call to the New York Fed is the signal worth watching. It suggests Treasury sees Japan’s yen defence as a potential source of pressure on the long end of the U.S. curve, and possibly a move into dangerous territory. That is the real story. If the Ministry of Finance (worlds largest holder of UST) is selling U.S. Treasuries to support the yen, the result is not a neat academic debate about inflation expectations. It is a live flow problem, with reserve shifts and duration sales capable of pushing long-end yields higher. In that sense, the market is not reacting to a fresh inflation regime so much as to cross-border balance-sheet mechanics. The pundits inflation narrative is looking increasingly threadbare. Breakevens are anchored, which undercuts the claim that the bond market is suddenly pricing a new inflation scare. Credit markets are not flashing red on prices. What they are signalling is strain in global duration and FX plumbing, with Japan at the centre. That matters because the steepening in U.S. yields is not happening in a vacuum. Japan is defending the yen, and that defense can create real pressure through reserve management, Treasury sales, and cross-border duration flows. At the same time, Large Tech stops buying UST, with its AI capex is pouring fuel on the demand for capital, data centers, chips, and power infrastructure, which raises funding needs and pushes more duration into the market. Those are powerful forces. They are more convincing than pundits waving their hands about Warsh communication Strategy and inflation when breakevens are stable. That matters because long-end yields are where financial conditions tighten most quickly. Once the back end starts to move on flows rather than inflation, the risk is that the market overshoots. Bessent appears to understand that, which is why the New York Fed call matters. This is not a story about pundit-friendly inflation angst. It is a story, about Big Tech Pivot and Japan yen defence, and a U.S. Treasury market that is now being forced to absorb the spillover.

📣 Get a first look at the NVIDIA Photonics co-packaged optics switch with @LambdaAPI. At NVIDIA GB300 NVL72 scale, the network doesn't just move data between GPUs — it determines how fast your cluster thinks. Co-packaged optics cut switch power, reduce failure points, and deliver more tokens per watt. Here's what that looks like in practice. ➡️

Good Morning! 6/12 Foreign Media Summary - 4958 Zhen Ding Technology (ZDT): U.S. Brokerage Raises Target Price A major U.S. brokerage's global team has significantly raised its 2026-2028 optical transceiver shipment forecasts from 53/71/80 million units to 73/141/150 million units. Among these, 1.6T volumes are 29/79/87 million units, with 3.2T expected to contribute 8 million units starting the year after next. Brokerages estimate a 83% CAGR for the optical transceiver PCB market from 2025-2028. As data transmission speeds increase, mSAP process capability becomes particularly critical and is considered an ideal technology for optical transceivers. Brokerages identify capable suppliers as 4958 Zhen Ding Technology, 2313 Compeq, and 3037 Unimicron. The brokerage particularly views Zhen Ding as the primary beneficiary. Additionally, it is expanding its ABF customer base, including Google TPU. The brokerage has raised its 2026-2028 EPS estimates to NT$14.5 / NT$24.2 / NT$33.4 and, applying a 27.5x PE multiple on next year's earnings, has simultaneously raised the target price. - 3037 Unimicron: U.S. Brokerage Raises Target Price Following the above observations, the major U.S. brokerage notes that Unimicron is one of the suppliers benefiting from growing optical transceiver demand. It also expects ABF supply to return to a shortage starting next year, with a persistent 5-10% supply gap through 2030. T-Glass supply shortages will be a key focus, leading suppliers to prioritize high-end products. The brokerage has raised its 2026-2028 EPS estimates to NT$11.8 / NT$25.3 / NT$51 and, applying a 51x PE multiple on next year's earnings, has simultaneously raised the target price.

Good Morning! 5/19 Foreign Media Summary - Mature Process Nodes: US Firms Say Upcycle Beginning * Upgrade/Rating Upgrade & Target Raise: UMC * Downgrade but Target Raise: GlobalWafers * Target Raise: Vanguard International Semiconductor (VIS) US major banks state that mature process capacity shortages are expected in 2H27. AI power IC demand will more than offset weakness in consumer electronics and smartphones. This is further supported by spillover orders from TSMC and Samsung. They believe TSMC will manage older-generation capacity in a more disciplined manner. Broker observations on UMC: Demand is recovering and wafer prices are being raised. Average prices in 2H26 are expected to rise 5-10%, with further increases next year. Capacity is expected to be tight from 2H26 to 2028. For VIS : Brokers note that TSMC is outsourcing part of its interposer production to them. The interposer business at the Singapore fab will also have higher gross margins than other power-related products. Due to tight capacity, prices will be raised in 1H26, including for LDDIC. Finally, for GlobalWafers: Brokers believe the market has already priced in the price recovery in the second half, improved LTA fulfillment, and progress in compound semiconductors. - ABF Substrates: US Firms Raise Targets for Unimicron & Nan Ya PCB; Upgrade & Target Raise for Zhen Ding US major banks have raised their ABF supply gap forecasts, expecting the shortage to widen to 22% by 2030 (previously ~15%).Brokers have raised Unimicron’s 2026-2028 EPS estimates to NT$11.6 / $24 / $49, valued at 51x forward P/E. For Nan Ya PCB, estimates raised to NT$11.5 / $23.8 / $51, valued at 54x forward P/E. For Zhen Ding Technology Holding: Brokers expect IC substrate revenue to triple by the year after next. In addition to benefiting from growing Chinese chip demand, they see the company competing for Google TPU substrate certification. It already has mSAP capability in the optical module segment, and BT market share is also rising. Raised 2026-2028 EPS to NT$13.8 / $21.1 / $28.5, valued at 25x forward P/E. - 2383 EMC: US Firm Reiterates Positive Stance US brokers estimate that capacity will need to expand another 20% in the year after next to meet demand. In mSAP, Elite Material has maintained ~80% market dominance since 2019 (first introduced in smartphones). They expect volume production in CPO applications. Near-term momentum: 2Q price increases to reflect rising costs, with gross margin recovery expected. Positive rating reiterated. - 3023 Sinbon: Asian Firm Raises Target Asian brokers have raised this year’s outlook and forecast revenue exceeding NT$50 billion in the year after next. Next year’s momentum will be driven by semiconductor equipment and automation trends; the year after by humanoid robots and drones. Latest EPS estimates for 2026-2028: NT$15.7 / $19.1 / $22.5, valued at 21x forward P/E, with target raised.