01. Significant Price Surge in DDR4, NAND, and SSD
On June 4th, Semiconductor Frontline reported that the memory market is experiencing a wave of price increases. The delay in the implementation of retaliatory tariffs by the United States has prompted computer manufacturers to stockpile goods, leading to a sharp rise in DDR4 memory prices. The increase over the past two months has exceeded 20%, with a 27% increase in May alone, marking the largest increase in eight years. Meanwhile, NAND flash prices have risen for five consecutive months due to production cuts by the three major manufacturers. The average price of 128GB NAND on May 12th increased by 4.84% compared to April.
Additionally, SSD prices have also shifted from falling to rising due to the reduced production of the key component NAND Flash. In the period of April to June 2025, the wholesale prices of the benchmark SSD products TLC 256GB and 512GB were approximately $31.7 and $59.4, respectively, a rise of about 6% compared to the previous quarter, marking the first increase in three quarters. SSDs for AI servers have seen higher price increases, while those for PCs have seen relatively lower increases. However, the upcoming year-end peak season and the demand for device upgrades due to the discontinuation of Windows 10 will drive further growth in demand.
02. STMicroelectronics Sees Market Recovery, But Warns of Geopolitical Risks
On June 4th, STMicroelectronics CEO Shelly indicated that the company has observed signs of recovery in the semiconductor market, with expectations of improved performance in the coming quarters. Order volumes in the second quarter have increased, and the market is in an upward cycle. The recovery momentum is expected to continue into the third quarter, with potential year-on-year sales growth. However, Shelly pointed out that geopolitical risks, particularly U.S. trade policies, could bring uncertainty to the market in the second half of 2025.
Shelly also noted that there is currently no evidence of significant customer stockpiling. Demand is uneven across regions, with strong demand in China but a weaker market in Europe. Previously, STMicroelectronics experienced a decline in orders and excess capacity due to weak demand in the automotive, industrial, and consumer electronics markets. However, with the rise in demand driven by AI and emerging applications, the semiconductor industry is gradually emerging from the trough.
03. Infineon Partners with Ather Energy to Drive Semiconductor Innovation in India's Electric Two-Wheeler Market
On June 3rd, Infineon Technologies signed a Memorandum of Understanding (MoU) with Ather Energy, a leading Indian electric two-wheeler manufacturer, in Seoul, South Korea. The partnership aims to drive innovation in India's electric vehicle (EV) sector by developing advanced semiconductor technologies for light electric vehicles (LEVs), charging infrastructure, and vehicle safety systems.
This collaboration will combine Infineon's expertise in microcontrollers, sensors, and power devices (including silicon carbide [SiC] and gallium nitride [GaN] technologies) with Ather Energy's experience in designing advanced LEVs. The goal is to enhance the performance, reliability, and cost-effectiveness of electric two-wheelers, thereby accelerating the adoption of electric mobility in India.
04. Broadcom's Q3 Sales Expected to Surpass Estimates, Driven by Strong AI Semiconductor Performance
On June 5th, Broadcom Inc., the U.S. semiconductor giant, projected that its sales for the third quarter (May-July) would exceed market expectations, primarily due to robust demand for networking semiconductors and custom artificial intelligence (AI) semiconductors.
Broadcom expects third-quarter sales of approximately $15.8 billion, higher than the market consensus estimate of $15.71 billion aggregated by Refinitiv (LSEG). During the earnings call, Broadcom CEO Hock Tan stated that AI semiconductor sales are accelerating, with an estimated $5.1 billion in revenue for the third quarter, marking the tenth consecutive quarter of growth. This is driven by continued investment from hyperscale partners. Meanwhile, non-AI semiconductor sales remain near the bottom, with a relatively slower recovery pace.
05. J.P. Morgan Bullish on PC and Server Industry Chains
J.P. Morgan's latest report released on June 4th indicates that the strong demand for AI servers is driving an increase in supply chain orders. The report's analysis of Dell and HP's financial statements shows a promising outlook for AI server orders, with ODM manufacturers such as Wistron set to benefit. The growing interest in AI from second-tier cloud service providers (CSPs) is also contributing to the accumulation of supply chain orders, which is advantageous for manufacturers like Quanta, Wiwynn, and Foxconn.
Commercial PC demand remains robust, primarily driven by the expiration of Windows 10 and the launch of AI-enabled PC models. However, consumer demand is relatively weaker due to the impact of tariffs. Asian brands such as ASUS are less affected.
06. The price of TSMC's 1.6nm wafer may reach $45,000, up 50% from the previous generation
On June 4th, it was reported that TSMC plans to start mass production of 2nm (N2) process chips in the second half of 2025, and the price of its 2nm wafers is expected to be $30,000 per piece. However, according to Taiwan's China Times, the price of TSMC's more advanced A16 (1.6nm) node wafers may be as high as $45,000, a 50% increase compared to the 2nm node. This price is expected to be achieved in the second half of 2026.
Such a high price means that only top customers can afford it, which also marks the entry of chip manufacturing into the era of "price war". With the significant increase in wafer prices, the economic threshold for the semiconductor industry is also rising, and small chip manufacturers may find it difficult to enter the high-end market. The high cost of the A16 node makes it mainly suitable for high-performance applications such as AI, supercomputing and flagship mobile chips. TSMC plans to increase the monthly production capacity of its 2nm process to approximately 30,000 wafers by the end of 2025 and is preparing for the A16 node and other advanced process nodes (such as A14). It is expected that the production capacity will be gradually expanded in the coming years.