Lithography — the machine that prints a chip's pattern — usually gets credited as the hero. But the machines that actually "build" the transistors are a different group, working quietly in the background: they spray on films just atoms thick (deposition), then etch away the excess to leave a pattern (etch). Repeat that over a hundred times and you get a single chip. This tool market runs into the tens of billions of dollars a year, is controlled by just a handful of companies, and is the real "picks and shovels" that every AI chip has to pass through.
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Theme index· base 100 · USD total return
Why is Deposition, Etch & Process Tools moving?
Q2 2026
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AI demand drives record results and new chipmaking systems
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Record results and strong guidance from Lam Research Lam Research reported record quarterly revenue of $5.84 billion and gave strong guidance, showing that demand for deposition and etch tools is booming, largely thanks to AI-related chipmaking.
It shows the direct financial impact of AI demand on a key player.
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New 3D chipmaking systems and AI glasses expansion Applied Materials and Lam Research both launched new 3D chipmaking systems, and Applied Materials is expanding into AI glasses with EssilorLuxottica, opening new markets for deposition and etch tools.
It highlights product innovation and new applications driving future demand.
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Long-term demand from IBM's 0.7nm breakthrough and South Korea chip hub IBM's 0.7nm chip breakthrough, developed with Lam, Tokyo Electron, and SCREEN, promises long-term demand for advanced tools. South Korea's $1.3 trillion Samsung/SK Hynix chip hub and analyst upgrades point to a wafer fab equipment market exceeding $200 billion by 2027.
It shows structural drivers that could sustain demand for years.
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Risks: HBM delay, high valuations, and insider selling SK Hynix's HBM expansion delay triggered sharp equipment stock sell-offs. Premium valuations, contested deposition/etch markets, an 80% free cash flow drop, and insider selling at Applied Materials temper the rally despite strong AI demand.
It provides a balanced view of the risks that could slow the sector.
Latest
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AI memory and 2nm buildout keep tool demand hot; China localization and one weak Japanese name are the counterweights
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TSMC 2nm ramp pulls more deposition and etch tools TSMC is pulling forward its 2-nanometer buildout to about 120,000 wafers a month by end-2026, with five new fabs and customers raising orders 10-20%. Each leading-edge wafer needs many more deposition and etch steps, so this is direct, near-term demand for the theme.
New, concrete capacity number showing the leading-edge driver of tool demand is accelerating.
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China fabs buy domestic tools, lifting NAURA and AMEC Chinese fabs are increasingly buying fully domestic equipment after Western supply restrictions, boosting NAURA (etch, deposition, cleaning) and AMEC (plasma etch). This grows the overall tool market and shifts share toward Chinese suppliers, a real competitive threat to Western tool makers' China revenue.
New reporting on a structural shift in who supplies China's fabs, changing the theme's competitive map.
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ACM Research Shanghai orders surge 88% ACM Research Shanghai's order backlog reached 17.07 billion yuan, up 88% from a year earlier, after first-half revenue of 3.72 billion yuan. A rising backlog at a China-focused tool maker signals fab equipment demand is still running ahead of supply.
New hard order data confirming demand strength in the China tool segment.
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Kokusai Electric profit warning is a lone weak spot Kokusai Electric guided fiscal-year operating profit down 18.5% on lower China DRAM investment and weaker factory utilization, even as NAND and DRAM upgrade work grew. It is a single-player miss, but it shows the boom is not lifting every deposition and etch supplier equally.
The period's main counterweight, showing the theme's demand is uneven across companies.
Q3 2026
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AI demand drives record tool sales, but China and bubble risks loom
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AI demand fuels record results and raised outlooks Disco shipped ¥116.5bn in tools, and Applied Materials, Lam Research, MKS, Axcelis, and ACM beat expectations and raised outlooks. SEMI forecast equipment sales up 23% to $166bn, as AI-related chipmaking keeps demand strong.
This is the core positive force: broad-based record results and upbeat guidance across the sector.
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Durable demand layers from 2nm, HBM, hyperscaler capex, and memory shortages TSMC's 2nm ramp, HBM growth, hyperscaler capex of $750B–$1T annually, record wafer-fab spending of $135–156bn, and memory shortages expected through 2031 add long-lasting demand for deposition and etch tools.
It explains why demand is expected to last, not just a one-quarter spike.
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Chinese toolmakers surge on self-sufficiency Chinese toolmakers surged on self-sufficiency: AMEC profit up about 300%, Tuojing over 1,300%, with NAURA and ACM also gaining. This shows China's push to make its own chip tools is boosting local suppliers.
It highlights a major new growth area and competitive shift within the period.
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Risks: China restrictions, AI bubble fears, and uneven supplier impact Samsung's mixed results triggered a chip selloff; analysts warn of an AI bubble, debt-fueled hyperscaler spending, and rising rates. China's 50% domestic-equipment rule and proposed tool-sale bans threaten Western suppliers' China revenue (26–30% for Applied Materials). Insider selling at Kingsemi and Kokusai Electric's -18.5% profit warning show uneven impact.
It provides the essential counterweight: real risks that could derail the positive trend.
News & notes movingDeposition, Etch & Process Tools
Germany
Deposition, Etch & Process Tools▲
SUSS MicroTec Enters Wafer-Cleaning Market With GreenTec Solutions and GT200 System
SUSS MicroTec SE has entered the wafer-level cleaning market with the launch of its new GreenTec Solutions product line and its first system, the GT200. The company said the wafer-cleaning market it is targeting represents an addressable market of approximately EUR 5.4 billion, driven by advanced packaging, heterogeneous integration and rising semiconductor demand from AI and high-performance computing. The GT200 is designed for research and development, process qualification and production in 200 mm manufacturing environments for MEMS, RF, Power Device and CMOS applications, and combines the company's TurbulenStrip and CrustBuster process technologies in a single platform. SUSS said the GT200 is the first member of a scalable GreenTec platform and that it will expand toward high-volume manufacturing with a dedicated 300 mm HVM platform in 2027, pulled in from its original schedule due to strong customer interest, followed by a 200 mm HVM platform in 2028. Chief Executive Officer Burkhardt Frick called the launch an important milestone in the execution of the company's Ambition 2030 strategy, while Senior Vice President Photomask Solutions Yuta Nagai said the product line represents its vision for a next generation of semiconductor manufacturing where sustainability and process excellence go hand in hand.
Applied Materials Shares Rise 2.5% as Besi Joins EPIC Center Partnership
Applied Materials expanded its partnership with BE Semiconductor Industries, also known as Besi, to develop advanced packaging technologies for artificial intelligence infrastructure, sending its shares up 2.5% in the afternoon session. Under the agreement, Besi joined the company's EPIC Center as an Innovation Partner, with the collaboration focused on next-generation 3D integrated circuit scaling, logic and memory integration, photonics, and interconnect architectures. The expanded partnership builds beyond hybrid bonding to develop new interconnect architectures that support artificial intelligence scaling requirements. After the initial pop, the shares cooled down to $522.95, up 2.3% from the previous close. Applied Materials is up 94.5% since the beginning of the year, but at $522.95 per share it is still trading 27.7% below its 52-week high of $723 from June 2026.
Semiconductors › Deposition, Etch & Process Tools Technology
Artificial Intelligence › AI Compute & Accelerator Silicon ▲Technology
AMAT · Technology · Positive Applied Materials expanded its partnership with Besi to develop advanced packaging and interconnect technologies for AI infrastructure.
BESI.AS · Technology · Positive Besi joined Applied Materials' EPIC Center as an Innovation Partner to co-develop next-generation 3D IC scaling and interconnect architectures.
ACM Research Shanghai's Orders in Hand Exceed 17 Billion Yuan, Up Nearly 90% Year on Year
ACM Research Shanghai released a voluntary announcement on the evening of September 30, stating that as of September 29, 2026, the company's total orders in hand amounted to 17.073 billion yuan, an increase of 88.20 percent compared with the orders in hand voluntarily disclosed in the same period last year. The company said that since 2026, the semiconductor equipment manufacturing industry has continued its rapid growth trend, and the company's revenue has maintained sustained growth. The previously released half-year report showed that operating revenue in the first half of the year reached 3.718 billion yuan, up 13.87 percent year on year, while net profit attributable to the parent company was 989 million yuan, up 42.14 percent year on year. The company has already disclosed its full-year 2026 earnings forecast, expecting annual operating revenue to be between 8.2 billion and 8.8 billion yuan.
Semiconductors › Deposition, Etch & Process Tools ▲Demand
688082.CG · Demand · Positive Total orders in hand reached 17.073 billion yuan, up 88.20% year on year, signaling strong customer demand for its semiconductor equipment.
China Races to Build Domestic Chipmaking Equipment, Boosting NAURA and AMEC's Market Share
China's chipmaking equipment industry is growing rapidly as wafer fabs across the country turn to buying 100% domestically produced machinery after supply chain restrictions imposed by Western nations. Data from Google Trends for August to September 2026 shows surging keywords including China Semiconductor Tooling Localization and Domestic Wafer Fab Equipment, while retail investors continue searching for ASML China Export Restrictions. One clear beneficiary is NAURA Technology Group, or 002371.SZ, whose product lines cover etching equipment, thin-film deposition, and wafer cleaning tools, placing it close to Applied Materials and allowing Chinese fabs to procure nearly an entire equipment suite in a single package, with its order backlog overflowing under the National Semiconductor Self-Reliance policy. Another is Advanced Micro-Fabrication Equipment, or AMEC, or 688012.SS, a specialist in plasma etching whose CCP and ICP etchers can compete with Lam Research and which has repeatedly won patent cases against major multinational giants, allowing it to rapidly expand its share of the Chinese market from the tens of percent range to a market-leading position.
002371.CS · Demand · Positive NAURA's order backlog is overflowing as Chinese fabs procure its domestic etching, deposition, and cleaning equipment.
688012.CG · Demand · Positive AMEC is winning Chinese fab orders and expanding its share to a market-leading position as fabs buy domestic tools.
AMAT · Competition · Negative NAURA's near-complete equipment suite lets Chinese fabs buy domestically instead of from Applied Materials, threatening its China share.
LRCX · Competition · Negative AMEC's CCP/ICP etchers compete with Lam Research and are rapidly gaining Chinese market share.
Applied Materials Seen Rallying 34.23% as Analysts Lift Estimates
Wall Street analysts' mean price target of $651 on Applied Materials implies 34.2% upside from the stock's last close of $485, according to Zacks Investment Research. The consensus is built from 33 short-term price targets, ranging from a low of $478.00 to a high of $900.00, with a standard deviation of $95.43; the lowest estimate implies a 1.4% decline while the most optimistic points to 85.6% upside. Over the past 30 days, two estimates for the current year have moved higher against no negative revisions, lifting the Zacks Consensus Estimate by 0.4%. Applied Materials currently carries a Zacks Rank #2 (Buy), which places it in the top 20% of more than 4,000 stocks ranked on earnings-estimate factors. The article cautions that price targets are often overly optimistic and should be treated with skepticism, but argues that the direction of earnings estimate revisions offers a more reliable guide to near-term upside.
Semiconductors › Deposition, Etch & Process Tools Capital
AMAT · Capital · Positive Analysts' mean price target of $651 implies 34.2% upside and earnings estimates were revised higher, a bullish analyst-valuation signal for Applied Materials.
Axcelis to Build $35 Million Ion Implantation Factory in Korea
Axcelis Technologies announced a $35 million investment in a new ion implantation equipment factory in Pyeongtaek, Gyeonggi Province, Korea, with a groundbreaking planned for October 20 and output not scheduled until the back half of 2028. The roughly 200,000-square-foot site will include warehousing, a training center, and two grades of cleanrooms, and CEO Russell Low framed it as an extension of Axcelis' existing Korean presence meant to serve rising global semiconductor demand; Executive Vice President Robert Mahoney took part in an investment declaration ceremony in Washington, D.C., alongside Korean trade officials. The move follows the company's August 6, 2026 second-quarter report, in which revenue rose from a year earlier and beat its own forecasts on stronger system shipments and aftermarket business, with Axcelis guiding to roughly $230 million in third-quarter sales and expecting revenue growth in 2026 that carries into 2027. Even so, GAAP earnings per share fell to $0.75 from $0.98 a year earlier and gross margin slid to 42.4% from 44.9%. Axcelis also has a pending merger with Veeco still awaiting remaining conditions, targets a close in the second half of 2026, and is operating with an interim CFO, while 33 hedge funds held the stock in the most recent quarter, up from 25, and short interest stands at 6.70% of the float.
TSMC 2nm capacity to reach 120,000 wafers monthly by end-2026, EDN reports
Taiwan Semiconductor Manufacturing Co is accelerating its 2-nanometre capacity expansion, with monthly output projected to reach about 120,000 wafers by the end of 2026, ahead of earlier expectations of 90,000 to 100,000 wafers, according to Taiwanese publication EDN. Customers including Apple, Nvidia, AMD, Qualcomm and MediaTek have recently raised orders for TSMC's 2nm family capacity by 10% to 20%, the report said, citing industry sources. TSMC is bringing five 2nm fabs online this year, two in Hsinchu and three in Kaohsiung, according to senior vice president Hou Yung-ching. Hou said first-year 2nm wafer output would be 45% higher than the first-year output of 3nm in 2023, while 2nm capacity is expected to grow at a compound annual rate of 70% from 2026 to 2028.
KOKUSAI ELECTRIC forecasts 18.5% drop in operating profit for fiscal year ending March 2026
KOKUSAI ELECTRIC's full-year results for the fiscal year ending March 2026 showed revenue of 235 billion yen, down 1.6% year on year, operating profit of 41.8 billion yen, down 18.5%, and net profit attributable to owners of the parent of 30 billion yen, down 16.4%. According to the company, on the revenue side, sales of equipment for NAND and mainly DRAM-related upgrade and retrofit work grew, but DRAM-related capital investment in China, which had been brisk in the previous fiscal year, settled down, resulting in lower overall revenue. On the profit side, the company cited lower utilization rates at production plants, changes in product mix, and upfront investment including research and development for the future. The gross margin remained above 40% at 41.2%, while selling, general and administrative expenses swelled to 55.1 billion yen, pushing their ratio to revenue up to 23.4%, and research and development spending also rose to 18.2 billion yen, an increase of more than 40% over two fiscal years. The share price climbed from the 4,200 yen range to the 10,800 yen range before pulling back, with a gap of more than 2.5 times between the lowest and highest month-end closing prices.
Applied Materials Commits US$5b to India for 140-Acre Semiconductor Research Park
Applied Materials has committed US$5b to India over the next decade, anchored by a 140 acre semiconductor research park. The announcement comes as the company's share price has climbed 76.39% year to date, with a 1 year total shareholder return of 138.91%, though the 90 day share price return is down 24.34%. Applied Materials closed at $474.25, while the most followed narrative framework places fair value at $627.66, implying the stock is 24% undervalued, and a separate discounted cash flow model estimates future cash flow value at $277.49. The company's broad portfolio and investments in local manufacturing infrastructure, including new Arizona and EPIC centers, position it to capture a greater share of global wafer fab buildouts, with over 100 new fabs or expansions tracked this year. Risks include reliance on China and a concentrated group of large chipmakers, where export restrictions or delayed fab projects could undermine the upbeat narrative.
Semiconductors › Deposition, Etch & Process Tools ▲Capital
AMAT · Capital · Positive Applied Materials commits US$5b over a decade to a 140-acre India semiconductor research park, a major capex/investment commitment.
Lam Research Lifts 2026 Wafer Fab Equipment Outlook to Low $150B Range
Lam Research drew fresh attention after management lifted its 2026 wafer fab equipment outlook to the low US$150b range while also flagging a sharp expected rise in advanced packaging revenue. The stock has risen 14.1% over the past week but is down about 19% across the last three months, even as its year-to-date share price return sits near 66% and its 1 year total shareholder return is about 141%. The current share price of $307.16 sits well below a narrative fair value of $423.85, a gap that hinges on how the AI driven memory cycle plays out. On earnings multiples the picture is tougher, with the stock trading on a 52.9x P/E, above both the peer average of 46.9x and a fair ratio of 44.6x. The narrative could break if memory makers pull back capex faster than expected or if China restrictions tighten and compress wafer fab demand.
LRCX · Demand · Positive Lam Research lifted its 2026 wafer fab equipment outlook to the low $150B range and flagged a sharp expected rise in advanced packaging revenue, signaling stronger equipment demand.
Japan Stocks Poised to Catch Up With Global AI Rally as Yen Steadies
Japanese stocks look set to catch up with a global AI-led rally when trading resumes Thursday, with Nikkei 225 futures in Osaka trading about 1.4% above Friday's settlement of the underlying gauge after the Silver Week holiday. Chip-equipment makers Tokyo Electron and Advantest are expected to be among the biggest winners, according to Hu You, a senior research analyst at iFast Financial in Singapore, who also flagged chip package substrate maker Ibiden and memory maker Kioxia Holdings. The yen traded around 157.28 per dollar in Tokyo after a four-day losing streak, its longest since late August, keeping traders alert to intervention risk following the Bank of Japan's Friday rate hike and its signal that further tightening remains possible. The BOJ move, which disappointed yen traders for its lack of clearer guidance, also leaves bond traders facing a volatile reopen, with iFast's Hu You saying the hike sets a higher floor for short-term rates and is fundamentally negative for front-end JGB prices. The global AI trade has gathered steam on early signs of success for Meta Platforms' new AI agent and Alibaba Group Holding's unveiling of what it calls China's most powerful AI chip, though overnight weakness in US equities and rising oil prices may temper the optimism.
6857.JP · Demand · Positive Named as a chip-equipment maker expected to be among the biggest winners as Japanese stocks catch up with the global AI rally.
285A.JP · Demand · Positive Flagged by iFast analyst as a memory maker expected to benefit from the AI-led rally.
4062.JP · Demand · Positive Flagged by iFast analyst as a chip package substrate maker expected to be among the biggest winners in the AI-led rally.
Yuanta Securities Expects LRCX19 Profit to Grow 62% in 2027 on AI Expansion
Yuanta Securities views Lam Research Corporation, or DR LRCX19, as one of the beneficiaries of rising demand for NAND flash memory, especially as AI usage expands from model training toward broader real-world deployment. Lam Research derives a relatively large share of revenue from equipment used to produce NAND, while revenue from equipment for DRAM memory chips is also supported by growing demand for advanced chips, namely the stacking of DRAM into HBM, a technology in which Lam Research already has expertise. In the short term, improving US-China relations could also be a supporting factor for the company, since it generates a high proportion of revenue from China and had previously been restricted from selling certain types of equipment to Chinese customers. The meeting between Trump and Xi Jinping could fuel short-term speculative interest. For the earnings outlook for fiscal year 2027, which ends in June 2027, the Bloomberg Consensus expects normalized profit to still grow strongly at 62% year on year, while the current price trades at a PER of 32 times for FY2027. It gives a target price of 4.80 baht per DR, implying 24% upside.
Axcelis Technologies Plans US$35 Million Ion Implantation Plant in Pyeongtaek, Korea
Axcelis Technologies has announced a planned US$35 million ion implantation manufacturing facility in Pyeongtaek, Korea. The capacity move comes as the company's shares have risen 3.5% over one day and 7.4% over seven days, though the stock is down 11% over 30 days and 34% over 90 days, while year-to-date it is up 31.4% and its five-year total shareholder return stands at 127.4%. Axcelis last closed at $113.15, below the $161 fair value cited in the most-followed analyst narrative, which sees the stock as 30% undervalued, while a Simply Wall St discounted cash flow model estimates future cash flow value at just $10.79 per share. The bullish case rests on ongoing R&D and next-generation Purion platform enhancements driving customer engagement in advanced node processes such as trench and super junction devices, but also leans heavily on China exposure and silicon carbide adoption trends that could surprise negatively. Simply Wall St produced the analysis.
Semiconductors › Deposition, Etch & Process Tools Supply
ACLS · Capital · Positive Axcelis announced a planned US$35 million ion implantation manufacturing facility in Pyeongtaek, Korea, a capacity/capex investment.
TSMC Q2 CapEx Hits $15.59 Billion as 2026 Budget Raised a Third Time
TSMC spent $15.59 billion on capital expenditure in its June 2026 quarter, its largest quarterly outlay in the past eight quarters and about 42% above the $10.98 billion spent in the prior quarter, as the company raised its 2026 capital budget for a third time this year, from $52 billion to $56 billion in January, to the high end of that range in April, and to $60 billion to $64 billion in July. On the Q2 2026 earnings call, CFO Wendell Huang guided third quarter gross margin down 170 basis points to 66%, citing 3 to 4 percentage points of dilution from the steep ramp of TSMC's 2 nanometer process, even as the June 2026 quarter's gross margin reached 67.72%, its highest in two years and consistent with the 67.7% figure cited by CEO C.C. Wei. Huang said TSMC generated about $24.5 billion in operating cash flow that quarter, enough to cover the $15.59 billion in CapEx and roughly $4.9 billion in dividends without new borrowing. TSMC is trading at 22.46 times forward normalized earnings, close to its 22.41 times two year average and well below the 29.65 times high in that range, after a mid September selloff tied to AI safety warnings from Anthropic's Dario Amodei and OpenAI's Sam Altman rather than anything specific to TSMC. Institutional 13F filings dated June 30, 2026 show a split Street, with Coatue raising its TSMC stake 7.6% to 9.3 million ADRs and Situational Awareness lifting its position to 2.6 million shares, while Lone Pine cut its stake 92.7%, SoftBank cut 71.5%, and Viking Global cut 29%.
Semiconductors › Process Control — Metrology & Inspection ▲Capital
2330.TW · Capital · Positive TSMC raised its 2026 capex budget for a third time to $60-64B and spent a record $15.59B in Q2, funded by $24.5B operating cash flow without new borrowing.
Applied Materials to Invest $5 Billion in India Over Next Decade
Applied Materials plans to invest $5 billion in India over the next decade, expanding its research, supply-chain, and workforce capabilities as India tries to establish itself as a major semiconductor manufacturing hub. The announcement came at SEMICON India, where more than 600 companies from 52 countries participated, and follows India's commitment of more than $21 billion in semiconductor incentives, with domestic semiconductor consumption expected to reach $110 billion by 2030. India has already approved 12 semiconductor projects under its incentive program, though Reuters reported that India still has no large-scale chip fabrication facility in commercial production and that Tata Electronics' planned $10 billion fab in Gujarat has been delayed by nearly two years. The investment fits Applied's current growth cycle: in fiscal Q3 2026, revenue reached a record $9.12 billion, up 25% year over year, while gross margin rose to 50.3 percent and operating income increased to $3.08 billion, with record operating cash flow of $3.04 billion. Applied also faces geopolitical exposure, having paid $253 million in 2026 to settle a U.S. Commerce Department inquiry involving certain China shipments, and its fourth-quarter revenue forecast of $10.25 billion came with a roughly 50.4 percent margin outlook amid increasing competition.
Semiconductors › Deposition, Etch & Process Tools Capital
Semiconductors › Wafer-Fab Equipment & Lithography Capital
AMAT · Capital · Positive Applied Materials plans a $5 billion investment in India over the next decade, expanding research, supply-chain, and workforce capabilities.
Tata Electronics Private Limited · Supply · Neutral Its planned $10 billion Gujarat fab has been delayed by nearly two years, a setback for India's chip ambitions, though the article gives no clear directional read for the private company.
UVJC to Launch NovaJet, First Commercial UVJP System, at WESEMiBAY in Shenzhen
Universal Vapor Jet Corporation, a wholly-owned subsidiary of Universal Display Corporation, will unveil NovaJet, the first commercial system built on its proprietary Universal Vapor Jet Printing platform, at the WESEMiBAY Semiconductor Ecosystem Conference and Expo in Shenzhen, China, from 14 to 16 October 2026. The launch, at Booth 8G03, marks UVJC's first trade show appearance and introduces its dry, solvent-free and maskless thin-film deposition technology to one of Asia's most important semiconductor ecosystems. A scale model of NovaJet will anchor the display alongside coated substrates and printed samples produced on the production system installed and operating at UVJC's headquarters and R&D facility in Singapore. Chief Executive Officer Chandran Nair said NovaJet is an important step in bringing UVJP closer to real-world manufacturing, and he and Li Jiafan, UVJC's Head of Business Development in China, will present on enabling dry and patterned thin-film printing for next-generation manufacturing on 15 October 2026. UVJP is a dry vapour-phase process for digitally patterned thin-film deposition that places functional materials directly onto substrates, reduces process steps tied to solvents, masks, drying and lithography, and works without substrate heating, suiting delicate, non-planar and temperature-sensitive surfaces.
Citi Forecasts Memory Chip Shortages Widening Through 2031 on AI Demand
Citi expects shortages across the global memory semiconductor market to deepen through 2031, driven by rising demand for high-bandwidth memory, DRAM and NAND as artificial intelligence systems adopt continual learning. In a research note published Monday, the investment bank identified continual learning as a potential central theme in AI development over the next five years, an approach that updates AI models with new tasks while retaining prior knowledge and so drives demand for both memory and data storage. Citi forecasts HBM bit demand will increase 62% year over year to 75.2 billion gigabits in 2027, followed by a further 69% rise to 127.0 billion gigabits in 2028, and it expects demand for enterprise solid-state drives to expand as AI systems require additional storage capacity. For DRAM, Citi projects global demand growth of 30% in 2027 and 35% in 2028, against supply growth of 19% and 22%, producing supply-demand ratios of -8.7% and -9.7% for the respective years. The bank anticipates a similar imbalance in NAND memory, forecasting demand growth of 29% in 2027 and 33% in 2028 versus supply increases of 21% and 25%, with NAND supply-demand ratios of -6.1% in 2027 and -5.5% in 2028 compared with an estimated -0.8% in 2026. In its equity research, Citi named Samsung Electronics, SK Hynix, Micron, Sandisk and Kioxia as its preferred memory semiconductor stocks, and highlighted Montage, Applied Materials, Lam Research, TES, Eugene Tech and TechWing within semiconductor equipment and materials.
KLA Lifts Calendar 2026 WFE Market Estimate to Low-$150 Billion Range
KLA Corporation is benefiting from accelerating artificial intelligence infrastructure spending, which is driving higher investments in leading-edge foundry and logic technologies and boosting demand for its process-control solutions. In fiscal 2026, the Semiconductor Process Control segment's revenues increased 12% year over year, and overall fiscal 2026 revenues rose 12% year over year to $13.58 billion. During the fourth quarter of fiscal 2026, management raised its calendar 2026 wafer-fabrication equipment market estimate, including advanced packaging, to the low-$150 billion range, up from its previous $140 billion-plus view and approximately $120 billion in calendar 2025. KLAC expects second-half 2026 revenues to be approximately 20% higher than the first half, aided by high-performance computing, high-bandwidth memory, increasing extreme ultraviolet adoption in DRAM and advanced packaging technologies such as hybrid bonding, and said backlog was expected to reach about $12.5 billion. The company faces intensifying competition from Applied Materials, which expects its process diagnostics and control business to grow more than 50% in calendar 2026, and from ASML, which expects advanced foundry and logic revenues to rise about 25% in 2026 and extreme ultraviolet revenues to increase roughly 45%.
Semiconductors › Advanced Packaging & Test (OSAT) ▲Demand
KLAC · Capital · Positive Management raised its calendar 2026 WFE market estimate to the low-$150 billion range from $140 billion-plus and guided second-half 2026 revenues ~20% above the first half.
KLAC · Demand · Positive AI infrastructure spending is driving leading-edge foundry/logic investment and demand for KLA's process-control solutions, with fiscal 2026 revenue up 12% to $13.58 billion and backlog near $12.5 billion.
AMAT · Competition · Neutral Named as an intensifying competitor whose process diagnostics and control business is expected to grow over 50% in calendar 2026.
ASML.AS · Competition · Neutral Cited as a competitor expecting advanced foundry/logic revenues up ~25% and EUV revenues up ~45% in 2026.
Kingsemi's second-largest shareholder Liaoning Kefa plans inquiry-based transfer of 1% stake; share price up over 145% this year
After market close on September 18, Kingsemi announced that shareholder Liaoning Kefa Industrial Co., Ltd., which holds more than 5% of the company, intends to carry out an inquiry-based transfer of pre-IPO shares totaling 2.021 million shares, representing 1.00% of the company's total share capital, citing its own capital needs. Liaoning Kefa currently holds 21,315,832 shares, or 10.55% of total share capital, making it the company's second-largest shareholder, behind only NAURA Technology Group Co., Ltd. at 17.84%. The transfer is being organized by CITIC Securities Co., Ltd., with a minimum transfer price of no less than 70% of the average stock trading price over the 20 trading days before September 18, 2026. Transferees must be institutional investors and may not transfer the shares within six months of acquisition. Based on a rough estimate using the September 18 closing price of 363.98 yuan per share, the corresponding market value is approximately 736 million yuan. Just over a month earlier, company directors and senior executives Zhang Xinchao, Wang Mingbo, Cheng Hu, and Liu Shujie had announced reduction plans to sell no more than 63,093 shares in total. As of September 18, Kingsemi's share price had risen 145.09% year-to-date. In the first half of 2026, the company achieved operating revenue of 897 million yuan, up 26.47% year-on-year, while net profit attributable to shareholders of the listed company was 8.0622 million yuan, down 49.37% year-on-year.
Aeluma Targets AI Datacom With $30 Million CHIPS LOI and $56 Million Cash
Aeluma Inc is shifting its near-term commercialization focus to the AI datacom market, backed by a letter of intent with the Department of Commerce CHIPS R&D Office for up to $30 million in non-dilutive funding. The company ended fiscal 2026 with $56 million in cash and no debt, but reported a net loss of $9.2 million, wider than the $3 million loss in fiscal 2025, and adjusted EBITDA of negative $5.2 million versus positive $186,000 a year earlier. Aeluma expects government contract revenue to fall to approximately $2.3 million in fiscal 2027 from $4.5 million in fiscal 2026, while planning capital expenditures of $10 million to $12 million, mainly for two Aixtron G10 MOCVD reactors. The company strengthened its manufacturing partnership with Sumitomo Chemical Advanced Technologies and is negotiating commercial NRE agreements, though no deals are guaranteed. Management said the CHIPS award, if finalized, would likely be accounted for as an equity investment by the U.S. government rather than revenue.
Axcelis Eyes Mid-Single-Digit 2026 Revenue Growth as Veeco Merger Awaits China Approval
Axcelis Technologies is pointing to renewed growth as memory, power and aftermarket demand improve, with management expecting full-year 2026 revenues to grow at a mid-single-digit rate and further growth in 2027. The Zacks Consensus Estimate calls for 2027 revenues of $981 million and earnings of $5.29 per share, versus $884 million and $4.12 expected for 2026. Customer Solutions & Innovation revenues increased 35.1% year over year to $82.8 million in the second quarter of 2026, up 14% sequentially from $72.6 million. Second-quarter non-GAAP gross margin was 42.7%, down from 45.2% a year earlier, and non-GAAP operating margin fell to 14.7% from 17.7%, even as revenues rose 10.6% year over year. Axcelis trades at 21.2X forward 12-month earnings, above the Zacks industry multiple of 20.0X and its five-year median of 18.6X, and its pending all-stock combination with Veeco Instruments still depends on regulatory approval from China's State Administration for Market Regulation after shareholders approved the related share issuance in February 2026.
Semiconductors › Deposition, Etch & Process Tools ▲Demand
ACLS · Capital · Negative Second-quarter non-GAAP gross margin fell to 42.7% from 45.2% and operating margin dropped to 14.7% from 17.7%.
ACLS · Demand · Positive Axcelis expects mid-single-digit 2026 revenue growth on improving memory, power and aftermarket demand, with Customer Solutions & Innovation revenue up 35.1% YoY.
VECO · Regulation · Neutral Veeco's pending all-stock merger with Axcelis still awaits regulatory approval from China's State Administration for Market Regulation.
Applied Materials AGS Revenue Hits Record $1.78 Billion, Up 22%
Applied Materials' Applied Global Services business posted record revenue of $1.78 billion in the third quarter of fiscal 2026, up 22% year over year, with operating margin improving 280 basis points. Management said customers are bringing new fabs online while optimizing existing facilities, and more than 37,000 chambers are now connected to Applied Materials' AIx software for AI-powered monitoring, diagnostics and predictive analytics. The company added more than 1,500 manufacturing and AGS support employees in the quarter and plans to double quarterly system output from current levels by 2028, with further capacity additions through 2030. Customers are providing longer-term forecasts that support AGS revenue growth of more than 20% in 2026 and a sustainable mid-teens annual rate over the longer term, and Applied Materials expects AGS revenue of approximately $1.84 billion in the fourth quarter of fiscal 2026. Applied Materials expects non-GAAP earnings of $4.02 per share, plus or minus 20 cents, for 85% year-over-year growth at the midpoint, while the Zacks Consensus Estimate points to 86.6% growth.
BofA Lifts US Semiconductor Growth Forecast to 18% Through 2030
Bank of America raised its growth forecast for the US semiconductor industry, projecting an 18% compound annual growth rate between 2026 and 2030, up from its previous estimate of 14%. The bank attributed the revision primarily to higher expectations for memory chips and server-related components, and now forecasts the industry's total addressable market will reach $3.2 trillion by 2030, up from its previous estimate of $2.7 trillion. BofA said the industry took approximately 50 years to reach $1 trillion in sales but could double its current estimated market size of $1.7 trillion within four years, citing customer orders and capacity commitments across the data-centre and AI sectors. Separately, the bank raised its forecasts for the wafer fabrication equipment market, expecting spending to reach $156 billion in 2026, a 33% increase from the prior year, and $210 billion in 2027, representing projected annual growth of 34%, with the revisions reflecting higher expected spending on memory manufacturing equipment, particularly for DRAM production. BofA forecasts DRAM equipment spending of $61 billion in 2026 and $85 billion in 2027, and estimates the overall wafer fabrication equipment market could reach $360 billion by 2030, a compound annual growth rate of approximately 23% between 2026 and 2030.
BAC · Capital · Positive BofA raised its US semiconductor growth and WFE spending forecasts, a bullish analyst/valuation revision from the bank itself.
NVDA · Demand · Positive BofA cited customer orders and capacity commitments across data-centre and AI sectors, supporting demand for NVIDIA's AI chips.
Applied Materials Forecasts First $10 Billion Quarter This Fall
Applied Materials is guiding toward its first-ever $10 billion revenue quarter, with management setting a midpoint of $10.25 billion, plus or minus $500 million, for its fiscal fourth quarter of 2026, which runs through late October. That midpoint sits about 51% above the year-ago period, when fiscal fourth-quarter revenue fell 3% to $6.80 billion. The guidance range bottoms out at $9.75 billion, so management's own forecast leaves room to fall short of the milestone. The company's fiscal third quarter, ended July 26, was itself record-setting, with revenue rising 25% year over year to $9.12 billion and non-GAAP earnings per share reaching a record $3.50, up 41%. Management has beaten its own guidance all year, and CEO Gary Dickerson said in the fiscal third-quarter earnings release that based on increased demand visibility from customers, the company expects another strong growth year in 2027. Applied guided fourth-quarter adjusted earnings per share to $4.02, plus or minus $0.20, up about 85% from the year-ago quarter's $2.17, and shares trade around $462, down about 38% from their 52-week high of $739.67.
AMAT · Capital · Positive Applied Materials guided to its first-ever $10B+ revenue quarter with record Q3 revenue and EPS, a strong earnings/guidance event.
AI Leaders Call for Slowing Frontier Development as DeepMind RSI Rumors Swirl
Anthropic CEO Dario Amodei called for slowing frontier AI development, a position OpenAI CEO Sam Altman backed by saying the industry needs to "pace the frontier," and Elon Musk agreed, as fears grow that the alignment problem remains fundamentally unsolved. Amodei wrote on September 12 that AI has been advancing drastically faster since roughly this summer, driven by AI's growing ability to help build the next generation of AI, a dynamic he now explicitly calls recursive self-improvement and says is beginning across the industry, including at Anthropic. OpenAI has disclosed that its researchers were already using 3.1 agent-workdays for every human workday by mid-August, and Reuters reported on August 12 that Google co-founder Sergey Brin had been pushing resources inside DeepMind toward recursive self-improvement, putting Alphabet directly inside the story. Amodei's proposal hinges on China: he argues U.S. frontier labs can only slow by roughly the amount of their technological lead over Chinese projects, and his first recommendation is to stop selling powerful AI chips and semiconductor-manufacturing equipment to China, saying chips will be the main determinant of China's AI strength. That places Nvidia at the physical center of the debate, since its Data Center revenue reached $89.0 billion in fiscal Q2 2027, up 117% from a year earlier, yet the company has said current U.S. policy has effectively shut it out of China's data-center compute market and its fiscal Q3 outlook assumes no Data Center compute revenue from China. DeepMind Chair Demis Hassabis has said Amodei's essay points toward the right path forward, while noting the details still need work.
NVDA · Tariff · Negative Amodei's proposal to stop selling powerful AI chips and semiconductor-manufacturing equipment to China, plus current U.S. policy that has shut Nvidia out of China's data-center compute market, threatens its China revenue.
GOOG · Technology · Neutral Reuters reported Sergey Brin pushed resources inside DeepMind toward recursive self-improvement, putting Alphabet at the center of the RSI debate, though the article gives no clear positive or negative read.
Anthropic · Technology · Neutral Anthropic CEO Dario Amodei authored the call to slow frontier AI development and says recursive self-improvement is beginning at Anthropic, but the article gives no clear positive or negative read.
DeepMind · Technology · Neutral DeepMind is tied to the recursive self-improvement rumors and Chair Demis Hassabis endorsed Amodei's path, but the article gives no clear positive or negative read.
OpenAI · Technology · Neutral OpenAI CEO Sam Altman backed slowing frontier development and OpenAI disclosed researchers using 3.1 agent-workdays per human workday, but the article gives no clear positive or negative read.
Cramer Calls Applied Materials a Long-Term Buy as CEO Flags 40% Growth
Jim Cramer told a Mad Money caller on September 9 that he would go beyond holding Applied Materials and make it a long-term buy, citing CEO Gary Dickerson's interview with David Faber that day. Speaking at the Goldman Sachs Communacopia + Technology Conference on September 9, Dickerson said Applied's semiconductor equipment business was approaching 40% revenue growth in 2026, up from forecasts of more than 20% in February and more than 30% in May, driven largely by AI and data-center demand, with agentic AI identified as a major 2026 driver. Dickerson said the company has an eight-quarter rolling forecast and customer commitments extending through 2030, and that growth in 2027 would be strong and growth beyond 2027 very strong, though he gave no specific 2027 figure. Applied Materials' fiscal third-quarter revenue rose 25% year over year to a record $9.12 billion, while GAAP EPS increased 43% to $3.17. The stock closed at $468.85 on September 9, a 26.25 forward P/E, with China at $2.506 billion, or 28% of fiscal third-quarter revenue, down from 35% a year earlier, and the company recorded a $253 million charge tied to a settlement with the U.S. Commerce Department's Bureau of Industry and Security over export-controls compliance. Hedge fund holders of Applied Materials numbered 137 in the second quarter versus 138 in the first, and short interest stood at approximately 1.5% of the float.
AMAT · Capital · Positive Applied Materials posted record fiscal Q3 revenue of $9.12 billion, up 25% year over year, with GAAP EPS up 43% to $3.17, and Cramer called the stock a long-term buy.
AMAT · Demand · Positive CEO Dickerson said Applied's semiconductor equipment business is approaching 40% revenue growth in 2026, driven largely by AI and data-center demand, with customer commitments extending through 2030.
Lam Research Says Chip Equipment Demand Is Sold Out, Eyes Mid-50% Gross Margins
Lam Research said semiconductor equipment demand is "fundamentally sold out," with eight to 10 new clean rooms expected at its tier-one customers between now and the end of next year. Speaking during a Goldman Sachs discussion, an unnamed Lam executive said the company is prioritizing customer execution, capacity readiness and product-roadmap delivery, and is expanding manufacturing, hiring and installation resources to meet tool demand that customers want sooner than Lam can provide it. Lam's Customer Support Business Group posted its third consecutive record revenue quarter at nearly $2.5 billion, covering spare parts, services, equipment upgrades and the Reliant mature-node product line. The company reported gross margin of 52%, its highest in 20 years, and reiterated guidance of 51% to 52%, while saying differentiated products, operating closer to customers and pricing efforts could lift gross margin into the mid-50% range over several years. Lam expects DRAM wafer-fab-equipment spending to remain the largest contributor next year, followed by leading-edge foundry and logic, with NAND also growing, and it said the NAND conversion cycle should involve about $40 billion in spending through the end of next year. The executive added that major M&A is not part of Lam's ongoing strategy, though the company may pursue small tuck-in acquisitions from time to time.
LRCX · Capital · Positive Lam reported 52% gross margin, its highest in 20 years, and guided to mid-50% margins on differentiated products and pricing efforts.
LRCX · Demand · Positive Lam says chip equipment demand is 'fundamentally sold out' with 8-10 new clean rooms at tier-one customers and record Customer Support revenue.
Applied Materials Posts Record Q2 Revenue of $9.12 Billion, Up 24.8%
Applied Materials reported quarterly revenues of $9.12 billion, up 24.8% year on year, exceeding analysts' expectations by 0.9%, as the 14 semiconductor manufacturing stocks tracked by the report delivered a very strong Q2 in which group revenues beat consensus estimates by 3.5% and next quarter's revenue guidance came in 6.5% above. President and CEO Gary Dickerson called it another record-breaking quarter with the highest sequential revenue growth in the company's history, citing significant improvement in inventory levels and next-quarter revenue guidance above analysts' expectations, though the stock is down 15.3% since reporting and trades at $453.00. Among peers, Kulicke and Soffa posted the group's fastest growth with revenues of $330.4 million, up 123% year on year and 5.7% above expectations, yet its stock is down 11.7% at $82.90, while KLA Corporation, the weakest of the group, reported revenues of $3.66 billion, up 15.2% and 1.3% above expectations, with its stock down 7.3% at $176.86. FormFactor reported revenues of $258.2 million, up 31.9% and 7.6% above expectations, with its stock up 34.7% at $112.38, and Lam Research reported revenues of $6.72 billion, up 30% year on year, meeting expectations, with its stock up 17.8% at $297.23.
TSMC Trades at $428 as 24/7 Wall St. Sets $492 Target on Record August Sales
Taiwan Semiconductor Manufacturing is trading at $428.29 against a 24/7 Wall St. price target of $492.37, implying 14.96% upside on a buy rating with 90% confidence. The call rests on record August 2026 revenue that surged 53.3% year over year, with January-through-August revenue up 39.3%, prompting management to raise full-year 2026 revenue guidance to slightly above 40% USD growth. Q2 2026 delivered EPS of $4.31 against a $3.8866 estimate, revenue of $40.20 billion, up 36.05% year over year, and a 67.7% gross margin, while Q3 revenue is guided to $44.6 billion to $45.8 billion and the 2026 capital budget was raised to $60 billion to $64 billion. The bull case leans on demand from Nvidia, whose Q3 guide of $108 billion, and Broadcom, whose Q3 FY26 AI semiconductor revenue reached $16.7 billion, up 221% year over year, effectively lock in TSMC's advanced-node order book, while Intel Foundry lost $2.1 billion in its latest quarter. The main near-term risk is gross-margin compression, with the 2nm ramp expected to dilute gross margin by 3 to 4 percentage points and overseas fabs adding another 2 to 3 points of drag, alongside Taiwan-Strait geopolitics as an unpriced tail risk; the bear-case one-year price is $413.79 against a bull case of $525.08 and a sell-side consensus target of $552.38.
Semiconductors › Advanced Packaging & Test (OSAT) ▲Demand
Semiconductors › Lithography Systems ▲Capital
2330.TW · Capital · Positive 24/7 Wall St. sets a $492.37 price target on TSMC with a buy rating, citing record August revenue and raised guidance
2330.TW · Demand · Positive Record August 2026 revenue surged 53.3% YoY with Jan-Aug revenue up 39.3%, prompting management to raise full-year 2026 revenue guidance above 40% growth
AVGO · Demand · Positive Broadcom's Q3 FY26 AI semiconductor revenue of $16.7B, up 221% YoY, is cited as locking in TSMC's advanced-node order book, indicating strong AI chip demand
NVDA · Demand · Positive Nvidia's Q3 guide of $108 billion is cited as locking in TSMC's advanced-node order book, reflecting strong AI chip demand
INTC · Competition · Negative Intel Foundry lost $2.1 billion in its latest quarter, highlighting competitive weakness versus TSMC
Applied Materials has been drawing heavy investor attention after Zacks Investment Research assigned the chipmaking equipment maker a Zacks Rank #2 (Buy), citing upward revisions to analyst earnings estimates. The company is expected to post earnings of $4.05 per share for the current quarter, a year-over-year change of +86.6%, with the Zacks Consensus Estimate rising +13.3% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $12.76 points to a change of +35.5% from the prior year, while the next fiscal year's estimate of $18.28 indicates a change of +43.3%. Revenue forecasts call for $10.29 billion in the current quarter, up +51.3% year over year, with current and next fiscal year estimates of $34.21 billion and $45.69 billion, representing changes of +20.6% and +33.6%. In its last reported quarter, Applied Materials posted revenues of $9.12 billion, up +24.8% year over year, and EPS of $3.5 versus $2.48 a year earlier, beating the Zacks Consensus Estimate of $9 billion by +1.31% on revenue and by +3.55% on EPS, and the company has topped consensus EPS and revenue estimates in each of the trailing four quarters. Despite the strong estimate momentum, Applied Materials carries a Zacks Value Style Score of D, indicating it trades at a premium to its peers.
AMAT · Capital · Positive Zacks assigned Applied Materials a Rank #2 (Buy) as analyst earnings estimates were revised upward, with consensus EPS and revenue forecasts rising sharply.
JPMorgan Names KLA Top Chip-Equipment Pick, Lifts WFE Forecasts
JPMorgan raised its forecasts for the wafer fabrication equipment market and named KLA as its top pick among U.S. chip-equipment makers in a note to clients on Friday. Analyst Mio Shikanai lifted the bank's WFE market growth estimates to 31% for 2026, taking the market to $163 billion, 38% for 2027 at $225 billion and 17% for 2028 at $263 billion, a 28% compound annual growth rate over 2025 to 2028. Shikanai said cloud service providers are accelerating their investments in response to further growth in AI-related demand, with spending by the top four U.S. players seen growing at a 58% annual rate through 2028. DRAM memory and TSMC drove the upgrade, with the analyst expecting memory supply to lag demand even in 2028 and TSMC's leading-edge capacity to stay above 100% utilization. Shikanai said she sees the most attractive risk/reward in KLA given its relative underperformance year to date, underappreciated exposure to foundry and logic-led WFE spending in 2027, and potential for upward revisions to consensus revenue estimates, noting KLA shares are up about 50% this year but have lagged peers Lam Research and Applied Materials, up roughly 85% and 82%, respectively.
KLAC · Capital · Positive JPMorgan named KLA its top pick among U.S. chip-equipment makers, citing underperformance and potential upward consensus revenue revisions.
AMAT · Capital · Positive JPMorgan's raised WFE market forecasts and AI-driven capex outlook lift the chip-equipment sector, benefiting Applied Materials as a peer named in the note.
LRCX · Capital · Positive Raised WFE forecasts and AI-driven spending support Lam Research, named as a peer that has outperformed KLA.
Memory Boom to Drive Chip Equipment Spending to Record $135.2 Billion in 2026
Global wafer-fabrication-equipment spending is projected to rise 16.9% to a record $135.2 billion in 2026, up from $115.7 billion in 2025, with memory equipment growing faster than the broader market. Within that total, 300mm DRAM equipment spending is projected to rise 29% to $37 billion and 300mm 3D NAND equipment spending is expected to increase 28% to $14 billion, while logic, foundry and other equipment spending remains the largest category at approximately $84.2 billion but grows just 10.6%. The combined $51 billion of DRAM and NAND equipment spending is being driven by Samsung Electronics, Micron Technology and SK hynix simultaneously expanding investment in advanced DRAM, high-bandwidth memory, NAND, cleanrooms and advanced packaging. Lam Research, the most direct beneficiary, reported record June-quarter revenue of $6.72 billion and fiscal 2026 revenue of approximately $23.23 billion, up from $18.44 billion in fiscal 2025, and recently raised its quarterly dividend 27% from $0.26 to $0.33 per share. KLA reported fiscal fourth-quarter revenue of $3.66 billion, up approximately 15% year over year, with fiscal 2026 revenue of $13.58 billion and GAAP net income of $4.83 billion, while ASML reported second-quarter 2026 net sales of €9.3 billion, a 54% gross margin and net income of €2.9 billion, and raised its expected 2026 net sales range to between €43 billion and €45 billion. The principal industry risk remains eventual memory overinvestment, though current investment is concentrated on advanced products, cleanrooms and process migrations.
Semiconductors › Deposition, Etch & Process Tools ▲Demand
Semiconductors › Process Control — Metrology & Inspection ▲Demand
Semiconductors › Lithography Systems ▲Demand
ASML.AS · Demand · Positive ASML reported Q2 2026 net sales of €9.3bn, 54% gross margin, and raised its 2026 sales guidance to €43-45bn amid record wafer-fab equipment spending driven by memory makers.
LRCX · Demand · Positive Lam Research, called the most direct beneficiary, posted record June-quarter revenue of $6.72B as memory equipment spending surges.
KLAC · Demand · Positive KLA reported fiscal Q4 revenue up ~15% YoY to $3.66B amid record wafer-fab equipment spending driven by memory makers.
000660.KO · Capital · Positive SK hynix is expanding investment in advanced DRAM, HBM, NAND, cleanrooms and advanced packaging, fueling record equipment spending.
005930.KO · Capital · Positive Samsung Electronics is among the memory makers simultaneously expanding investment in advanced DRAM, HBM, NAND and packaging.
MU · Capital · Positive Micron is among the memory makers simultaneously expanding investment in advanced DRAM, HBM, NAND and packaging, driving equipment demand.
Lam Research Returns Over $5.12 Billion to Shareholders in Fiscal 2026
Lam Research returned more than $5.12 billion to shareholders in fiscal 2026 through share repurchases and dividends. Buybacks were the larger component at $3.85 billion, up from $3.42 billion in fiscal 2025, while dividends totaled $1.27 billion. In the fourth quarter of fiscal 2026, revenues rose 30% year over year to $6.72 billion, non-GAAP operating margin expanded to 38.4% from 34.4%, and non-GAAP earnings per share climbed 37% to $1.82. In August 2026, the company raised its quarterly dividend by 27% to 33 cents per share from 26 cents. The Zacks Consensus Estimate for fiscal 2027 projects revenues of $8.10 billion, implying 52.1% year-over-year growth.
TSMC August Revenue Jumps 53% as Capex Hits Record $64 Billion
Taiwan Semiconductor Manufacturing Co. reported August revenue of NT$514.8 billion, or $16.3 billion, up 53.3% from a year earlier, though its shares slipped 0.40% premarket. Analysts expect 46.8% growth for the quarter as a whole, and the company guides to full-year sales growth slightly above 40% in dollar terms. TSMC is trying to build and equip roughly 20 factories at home and abroad, against a previous record of four or five simultaneously, with deputy co-chief operating officer Cliff Hou saying chipmaking tool requirements have nearly doubled since the end of last year. Capital expenditure is set for a record $60 billion to $64 billion in 2026, raised in July alongside revenue projections. TSMC also agreed this week to deploy ASML's High NA extreme ultraviolet machines in mass production from 2030, reversing a position it had held repeatedly on cost grounds, with the systems running up to $400 million each. Shares are up about 40% this year.
Axcelis to Build $35M Manufacturing Facility in Pyeongtaek, Korea
Axcelis Technologies, Inc. (Nasdaq: ACLS) announced plans to invest $35 million in a new ion implantation equipment manufacturing facility in Pyeongtaek, Gyeonggi Province, Korea, as part of its global manufacturing expansion. The facility will span approximately 200,000 square feet and include warehousing, cleanrooms, and a training center, with production slated to begin in the second half of 2028. President and CEO Russell Low said the investment underscores Axcelis' commitment to supporting global semiconductor demand. The announcement follows an Investment Declaration Ceremony in Washington, D.C., with Korean trade officials, and a groundbreaking is scheduled for October 20, 2026.
Semiconductors › Deposition, Etch & Process Tools Capital
ACLS · Capital · Positive Axcelis announces a $35M investment in a new ion implantation equipment manufacturing facility in Pyeongtaek, Korea, expanding its global manufacturing capacity.
Weihong recently released an ultrafast laser cutting and cleaving integrated solution, officially entering the precision processing of glass substrate base materials. The solution integrates femtosecond or picosecond ultrafast lasers with Bessel beam shaping technology to achieve nanoscale precision micro-modification, and features self-developed PSO functionality triggered by physical spatial distance to improve cross-section consistency and yield. The accompanying ULC100 laser controller is based on EtherCAT bus and supports dual-laser synchronized control. The solution is currently adapted for cutting base materials such as OLED flexible glass substrates and semiconductor packaging carriers, with applications spanning semiconductor chips, photovoltaic new energy, and next-generation display panels. The company stated that the next step will be to advance R&D on large-format integrated cutting and cleaving production lines and five-axis PSO technology.
Semiconductors › Deposition, Etch & Process Tools Technology
300508.CS · Technology · Positive Weihong launches an integrated ultrafast laser cutting and cleaving solution for glass substrates, entering a new market with advanced technology.
Sanfu Shares Hit Limit-Up with 160,000 Lots Queued
On September 8, major A-share indices opened mixed, with agricultural products and precious metals among the leading sectors. Sanfu Shares hit limit-up at 44.43 yuan per share, with 160,000 lots queued on the buy side. On the news front, on September 7, China's Ministry of Commerce issued an announcement deciding to impose provisional anti-dumping measures on imports of dichlorosilane originating from Japan. Dichlorosilane is mainly used in thin-film deposition during chip manufacturing, and several A-share companies have production capacity for it. Among them, Sanfu Shares' wholly-owned subsidiary Tangshan Sanfu Electronic Materials has an electronic-grade dichlorosilane capacity of 500 tonnes per year, with plans to expand to 850 tonnes per year.
Semiconductors › Deposition, Etch & Process Tools ▲Supply
603938.CG · Regulation · Positive China's anti-dumping measures on Japanese dichlorosilane imports benefit domestic producers like Sanfu, which has electronic-grade dichlorosilane capacity.
Four U.S. Companies to Invest $2 Billion in South Korea in Semiconductors and Energy
South Korea's Ministry of Trade, Industry and Energy announced on the 4th that four U.S. companies have decided to invest a total of $2 billion in South Korea in the fields of semiconductors, advanced materials, and energy. The investments were announced at a ceremony attended by Trade Minister Cheong In-kyo in Washington on the 3rd. U.S. industrial gas giant Air Products will expand facilities for semiconductor gases and rare gases in Pyeongtaek, Gyeonggi Province, and semiconductor equipment maker Axcelis will expand its production of ion implantation equipment in South Korea. Additionally, materials giant Corning will invest in advanced glass and other materials used in displays and semiconductors, and renewable energy developer Pacifico Energy will proceed with a 3.2-gigawatt offshore wind power project in the southwest, where a new semiconductor cluster is expected to be established.
Applied Materials Enters New AI-Driven Growth Cycle
Applied Materials has entered a new AI-driven growth cycle, reporting record revenue of $9.12 billion with non-GAAP EPS of $3.50 and GAAP EPS of $3.17, and gross margin above 50% for the 13th consecutive quarter of year-over-year expansion. The company expects Q4 revenue of approximately $10.25 billion, up 51% year-over-year, with non-GAAP EPS of $4.02, up 85%, and Semiconductor Systems revenue projected to rise 62% to about $7.9 billion. UBS analyst Timothy Arcuri maintains a Buy rating with a $675 price objective, citing aggressive capacity expansion and share gains, and the company aims to double systems output capacity by CY 2028. Applied Materials also rolled out six new systems targeting DRAM and advanced packaging, and its $500 million Singapore expansion more than doubles advanced cleanroom capacity there. However, rising expectations leave little room for error, as any slowdown in AI-related semiconductor spending, subdued DRAM investment, or delays in advanced-node capacity additions could weigh on the stock.
Applied Materials Faces Growing China Risk from Domestic Equipment Push
Reports that Shanghai Aishengna Electronic Technology Group has begun producing immersion DUV systems sent shares of ASML Holding (ASML) down sharply, but the immediate threat to Applied Materials (AMAT) is overstated. Applied Materials does not make lithography systems; a Chinese immersion DUV machine competes directly with ASML, not with Applied Materials' deposition, etch, and other systems. However, China's directive requiring semiconductor manufacturers to use at least 50% domestically produced equipment when adding new capacity pressures Applied Materials' $4.2 billion annual China revenue. In fiscal Q1 2026, China accounted for $2.095 billion, or 29.9% of total revenue, and in Q2, $2.087 billion, or 26.4%. Six major Chinese equipment suppliers saw combined sales surge from $748 million in 2020 to $7.608 billion in 2025, and CXMT, a key DRAM maker, sources an estimated 40% to 50% of its tools domestically, potentially overtaking Micron in physical wafer capacity by 2030. While five initial DUV systems are too few to impact 2026 earnings, the longer-term risk is that China's domestic equipment ecosystem reduces Applied Materials' addressable market over several years.
