TOKYO ELECTRON SPON ADS EACH REP 2 COM

Taiwan DRAM maker Nanya Tech plans to build new 12-inch wafer fabs in Yunlin and Pingtung, Taiwan for DRAM and customized DRAM, media report.

-The Yunlin fab will focus on sub-10nm process node products for AI.

-Nanya’s latest project, the NT$300 billion Linkou 5A DRAM fab, due for mass production in 2028

-Media quote a Nanya executive confirming plans for additional new fabs, but declining to comment where. $Applied Materials(AMAT.US) $ASML(ASML.US) $Lam Research(LRCX.US) $KLA(KLAC.US) $Tokyo Electron(TOELY.US) #semiconductors

Source: Dan Nystedt

TSMC’s operation in Kumamoto, Japan is recovering and will need some time to recalibrate equipment after the 7.1-magnitude earthquake, tripping safety systems and halting production, media report. TSMC said the fab structure, water supply, power and safety systems are all normal, and detailed inspections continue. Construction of the 2nd fab has resumed.

Japan’s Sony Semiconductor, Renesas and Tokyo Electron also halted production and are undertaking safety inspections.

(Note: TSMC is no stranger to earthquakes. The Kumamoto fab could be back in full production in a week. The amount of time it takes will tell us a lot about the damage.) $Taiwan Semiconductor(TSM.US) $Sony(SONY.US) $RNECY $Tokyo Electron(TOELY.US) #Japan #Kumamoto #semiconductors

Source: Dan Nystedt

Morgan Stanley: Intel CapEx Spend

Core Forecasts and Capex Revisions

> WFE and Capex Projections: The 2027 WFE forecast is set at $202 billion (a 31% year-over-year increase), which incorporates a $25 billion capex assumption specifically for Intel, though analysts see potential for further upside.

> Upward Revisions: Intel previously revised its 2026 capex outlook to over $20 billion and signaled that 2027 capex will be "significantly above 2026 levels".

> CPU Demand Drivers: Producing 5 million incremental Xeon 6 units requires an estimated $5.3 billion+ in WFE. Expanding logic wafer capacity to capture two-thirds of incremental CPU units (22.4 million units through 2030) demands a minimum of $23.8 billion for Xeon 6 and $27.9 billion for Xeon 7.

Key Equipment Beneficiaries

> Outside the US:

Tokyo Electron (TEL): Historically counts Intel as a major customer (ranging from over 10% up to 20.4% in F3/20).

Lasertec: Has seen Intel represent 10% or more of its customer base historically, peaking at 31.6% in F6/22.

> Within the US:

KLA Corp (KLAC): Highlighted as an outsized US beneficiary. Although Intel has not been a 10% customer since F6/15, Intel is heavily leaning on KLA to improve manufacturing yields and margins to succeed as a viable foundry, positioning KLA for potential massive revenue growth from Intel between 2025 and 2027.

$KLA $Intel(INTC.US)