Daily: TSMC's 2025 Annual Shareholder Meeting; China's memory players; Broadcom's latest switch chip
4 min read.
Highlights
TSMC’s 2025 Annual Shareholder Meeting. TSMC Chairman and CEO C.C. Wei spoke at the company’s annual shareholder forum. They expect record profit in 2025, fuelled by strong AI demand. The only thing he fears is a global economic slowdown, brought on by geopolitics, tariffs, and volatile currencies.
TSMC’s U.S. fab buildout is moving ahead, though Wei warns that it will be difficult to complete within Trump’s second term, or even this decade, due to a shortage of skilled labour. Meanwhile, TSMC’s Japan fabs are facing some minor delays.
China’s memory players. A detailed piece in TrendForce about the advancing moves of minor memory players in China. Chinese industry trends classically go from Lots to Consolidation, with China’s EV market being the representative example. I suspect there are too many minor memory companies in China and will be merged / acquired / failed / otherwise consolidated in the coming years, likely under the major memory firms YMTC or CXMT, or maybe even under the growing umbrella of national champions Huawei or Xiaomi.
Broadcom’s latest switch chip. Broadcom developed the Tomahawk 6 switch chips, the latest data centre switch chips, to boost AI accelerator’s efficiency.
Thanks for reading.
1. Policy and Geopolitics
1.1
FT (06/04): Xiaomi among Chinese tech groups set to be hardest hit by US chip software ban
Chinese tech companies designing their own advanced chips for manufacturing in Taiwan are set to be the hardest hit by new US restrictions on software tools.
Smartphone maker Xiaomi is first in line to be affected, according to people with knowledge of the matter, after a US directive last month instructed electronic design automation (EDA) groups to stop supplying their technology to China.
Xiaomi unveiled a breakthrough self-designed mobile processor in May. Its chip is on a leading-edge 3-nanometre node of miniaturisation and is made in Taiwan with a mix of licences and tools from now-restricted US EDA companies.
1.2
SCMP (06/01): China targets chip, quantum advances with 2030 metrology action plan in tech race with US
China has released an action plan for “disruptive technological innovation” in metrology – the scientific study of measurement – within the next five years.
The 2030 action plan, released by the State Administration for Market Regulation, focuses on breakthroughs in chip technology and quantum-scale measurement, both critical to a wide range of industries.
According to a report by ministry newspaper Science and Technology Daily last week, the plan targets tackling several “pain points” or shortcomings in China’s metrological capabilities, including measurement capabilities that are missing or need to be improved.
2. Economy, Finance, and Business
2.1
Nikkei (06/03): TSMC expects record 2025 profit despite US tariffs, currency volatility
Taiwan Semiconductor Manufacturing Co. on Tuesday said it expects to log a record profit for 2025 despite uncertainties brought on by geopolitical tensions, tariffs and volatile exchange rates.
Speaking at TSMC's annual general meeting, Chairman and CEO C.C. Wei said AI demand remains strong and that the only thing he fears is a global economic slowdown.
2.2
Bloomberg (06/03): TSMC Flags Delays in Japan Expansion While US Plans Advance
Taiwan Semiconductor Manufacturing Co. Chief Executive Officer C. C. Wei blamed worsening traffic snarls for delays in expanding its base in southwestern Japan, even while a parallel US effort races ahead.
Wei reaffirmed a commitment to spend another $100 billion ramping up manufacturing in Arizona over the next half-decade, while saying a plan to build a second plant in Japan was experiencing slight delays. He stressed productive discussions with Donald Trump earlier this year, even after telling the US president it will be “very, very difficult” to complete such a big buildout in five years because of a shortage of skilled labor. Trump was “warm” during their exchange, Wei said.
2.3
TrendForce (06/04): Chinese Memory Industry in High Gear as Manufactures Gather Steam
Recently, China’s memory industry has shown burgeoning growth, with companies strengthening their competitiveness through capital operations, technological upgrades, and industrial chain integration.
On May 28, Zentel submitted an application to the Hong Kong Stock Exchange for the issuance and listing of H-shares. According to the prospectus, the proceeds from the IPO will be used to expand its R&D team for high-bandwidth and DRAM products and to enhance production capabilities.
Zentel has established a long-term partnership with foundry service provider PSMC and collaborates with global top 10 DRAM module makers like ADATA and Memory Technology Corporation to build a stable production supply chain. Its “Zentel” memory brand, inherited from the 20-year-old Zentel Japan, is backed by an international R&D team and has penetrated the global premium client network.
3. Technology
3.1
Bloomberg (06/03): Broadcom Ships New Gear Meant to Improve AI Chip Performance
Broadcom Inc. began shipping a new version of its data center switch chips that can boost the efficiency of AI accelerators, aiming to take a bigger role in the booming market for artificial intelligence computing.
The company started delivering the Tomahawk 6 switch chips to customers over the weekend, and the product will be broadly available in July, said Ram Velaga, senior vice president and general manager of Broadcom’s Core Switching Group. Switches, a central piece of networking equipment, allow computers to communicate with one another. A single new Tomahawk 6 can do the work of six of the previous versions, Broadcom said.
Shares of the company gained as much as 3.5% to $257.50 on Tuesday in New York, reaching a record high. They had been up 7.3% this year through Monday’s close.