Semiconductor News 20260417

In today’s semiconductor news, we report on the dramatic expansion of business performance due to demand for AI infrastructure and the simultaneous restructuring of the supply chain against the backdrop of turbulent global conditions, with TSMC reporting a 58 percent increase in net income in the first quarter, and ASML raising its full-year outlook, Demand for AI is strongly driving corporate performance. In addition, a number of milestones are being made in anticipation of the next generation, such as TSMC’s entry into 2nm mass production, Tesla’s dual procurement of next-generation AI chips, and Japan’s Rapidus’ development of optoelectronic fusion. At the same time, however, issues that bring uncertainty to the industry’s growth trajectory, such as concerns about a prolonged memory shortage that will last until 2027 and material supply risks due to tensions in the Middle East, are also being highlighted.

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1. TSMC posts record first-quarter net income up 58 percent, raises full-year outlook
   Taiwan’s TSMC reported record first-quarter 2026 results, with net income up 58 percent year over year to NT$572.5 billion. Strong AI demand strongly drove revenue, and gross margin of 66.2 percent exceeded market expectations. In response, TSMC also expects second-quarter revenue to increase, and has raised its full-year revenue growth forecast to more than 30 percent, an overwhelming performance that symbolizes the booming AI market.
2. TSMC Enters 2nm Mass Production, Clarifies Mass Production Schedule for Arizona and Kumamoto Factories
   TSMC has entered mass production of its next-generation 2nm process and is simultaneously expanding its 3nm production capacity. The company is also making steady progress in building a global manufacturing network, confirming that it plans to begin 3nm mass production at its second plant in Arizona, USA, in the second half of 2027, and at its Kumamoto plant in Japan in 2028. In order to meet the rapidly growing demand for AI chips, the company is pushing forward with the development of cutting-edge processes and the expansion of its production bases on a global scale in parallel.
3. Semiconductor Memory Supply Shortage to Continue until 2027; Increased Production Not Catching Up with AI Priority
   It has been reported that the global semiconductor memory shortage is expected to continue until 2027, against the backdrop of surging demand for generative AI infrastructure. Three major memory manufacturers in the U.S. and South Korea are rushing to expand production capacity, but the overall pace of production increase, including general-purpose products, is not keeping pace with demand, as production of high value-added products, such as broadband memory for AI, is given top priority. This surge in memory prices is also affecting end products, such as Meta’s price hike for VR terminals.
4. ASML Increases Sales and Profit for Seventh Consecutive Quarter, Raises Full-Year Forecast on Surging Demand from South Korea
   ASML, a leading Dutch semiconductor equipment manufacturer, has reported its seventh consecutive quarter of increased sales and profit. Demand for its manufacturing equipment from the South Korean market in particular has surged, leading the company to upwardly revise its full-year sales outlook for 2026. As competition to develop cutting-edge AI semiconductors and next-generation memory intensifies, demand for core manufacturing equipment, including extreme ultraviolet lithography equipment, is extremely strong, indicating that industry-wide capital investment remains strong.
5. While Samsung is Promoting Yield Improvement of HBM4, Outflow of Core Talent Poses Risk
   It has been reported that Samsung Electronics is strongly promoting yield improvement by introducing advanced inspection technology and other measures in the manufacture of HBM4, the next-generation broadband memory. At the same time, however, there has been a succession of outflows of highly skilled personnel from the System LSI division, raising concerns that the future development of the proprietary Exynos processor and image sensors may be at serious risk. The company is facing a complex management challenge between technological sophistication and competition for human resources.
6. Tesla Suggests Dual Procurement of TSMC and Samsung for Manufacturing of Next-Generation AI Chips
   It has been reported that Tesla, led by Elon Musk, has suggested a dual procurement strategy using both TSMC and Samsung Electronics foundries as manufacturing contractors as it completes the design of its next-generation AI chips that will support self-driving and other applications. The company is now considering a dual procurement strategy that would use both TSMC and Samsung Electronics as manufacturing contractors. The aim is to diversify the risk of dependence on a single manufacturing supplier and to secure a stable chip supply and price negotiation power, and the selection of foundries and promotion of competition by giant technology companies are becoming more active.
7. China Tightens Supply Chain Restrictions, Domestic GPU Startups Rise
   The Chinese government is tightening restrictions on foreign companies cutting off supply chains. While strict U.S. export controls remain in place, Chinese domestic investment in becoming self-reliant is accelerating, and in particular, startups developing domestically produced GPUs, a key component of AI computation, are steadily strengthening their presence in the global AI chip race. The creation of a unique technology ecosystem is progressing at a rapid pace.
8. Rapidus to Start Full-Scale Development of Photoelectric Fusion Technology and Chiplets in Chitose, Hokkaido
   Rapidus, a Japanese next-generation semiconductor manufacturer, will start full-scale development of photoelectric fusion technology to dramatically increase data transfer speeds and chiplet technology to combine multiple semiconductors for higher performance at its base in Chitose City, Hokkaido. The report said that Rapidus will start full-scale development of optoelectronic fusion technology, which dramatically increases data transfer speed, and chiplet technology, which combines multiple semiconductors to achieve higher performance. Under the leadership of the Center for Advanced Semiconductor Technology, a technical research association, the company aims to establish next-generation packaging technology indispensable in the age of AI, and is accelerating cutting-edge research and development for the revival of Japan’s semiconductor industry.
9. Cadence and NVIDIA Deepen AI Alliance to Innovate Chip Design and Robotics
   Cadence, the leading electronic design automation software company, and NVIDIA have announced the further deepening of their strategic alliance in the area of artificial intelligence. capabilities into Cadence’s design tools to significantly streamline the complex design process of semiconductor chips, while aiming for new innovations in the field of robotics. The collaboration between the leaders in software and hardware will advance the entire ecosystem.
10. Escalating Conflicts in the Middle East Accelerate Restructuring and Risks in Technology Supply Chains
    It has been noted that the escalating conflicts in the Middle East, such as between Iran and Israel, are further accelerating the restructuring of global technology supply chains. In addition to the risk of fluctuations in oil prices and disruptions to logistics routes, uncertainty regarding the procurement of materials and other items essential for semiconductor manufacturing is increasing. The global chain of geopolitical risks poses a direct threat to the stable supply of chips and manufacturing costs, and companies are rushing to take defensive measures such as diversifying their procurement networks.

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