01. April Exports Break $80 Billion Again; Chip Exports Surge 173%
On May 4, according to MoneyDJ news, driven by strong semiconductor export growth, South Korea's April exports exceeded $80 billion for the second consecutive month, reaching $85.89 billion—a 48% year-on-year increase and the second-highest level on record.
As demand for AI memory chips remains robust, the semiconductor supercycle continues. April chip exports surged 173.5% year-on-year to $31.9 billion, a record high for the period. The AI boom also fueled solid-state drive (SSD) demand, with computer exports soaring 515.8% year-on-year to $4.08 billion—the highest monthly figure ever recorded.
02. Semiconductor Market to Reach $1.29 Trillion This Year, Up 52.8% YoY
On May 8, IDC forecasted that total semiconductor revenue will reach $1.29 trillion in 2026, representing a 52.8% year-on-year increase. AI infrastructure has become the structurally dominant market, with data center semiconductor revenue projected to hit $477.1 billion in 2026. Capital expenditures by the four tech giants are expected to rise 70% year-on-year to approximately $600 billion.
Memory revenue is projected to grow from $226 billion in 2025 to $594.7 billion. DRAM revenue will reach $418.6 billion, up 177%, with HBM capacity already locked in through 2026. NAND flash revenue will hit $174.1 billion, up 138.5%.
While mobile phone and automotive markets face cost pressures and macroeconomic headwinds, edge AI is creating new demand. IDC predicts semiconductor revenue will reach $1.75 trillion by 2030.
03. Denso Abandons Rohm Acquisition Plan, Maintains SiC Partnership
On May 4, semiconductor industry media SemiMedia reported that Japanese automotive supplier Denso has withdrawn its proposal to acquire Rohm Semiconductor. Denso had previously offered approximately ¥1.3 trillion ($8.2 billion), but the bid failed to gain support from Rohm's board. After assessing the long-term business impact, Denso decided to abandon the plan.
Despite the failed acquisition, the partnership between the two companies remains intact. Denso holds nearly a 5% stake in Rohm, and both firms continue to collaborate on power semiconductor technology, particularly automotive silicon carbide (SiC) devices. As electric vehicles and powertrain systems demand higher efficiency and thermal performance, the demand for SiC power devices is growing. Denso continues to explore applying Rohm's technology across broader automotive applications.
04. Winbond: Demand "Extremely Tight," 2027 Capacity Fully Sold Out
On May 7, according to Wealth Magazine, Winbond posted a record-high gross margin of 53.4% in Q1, signaling continued strong pricing in Q2. General Manager Chen Pei-ming stated bluntly that due to AI-driven demand, "overall memory demand is extremely tight," with prices remaining high in the second half of the year and 2027 capacity already fully booked.
The AI capacity squeeze is significant: with weak PC demand, Winbond has shifted capacity toward servers and AI. SLC NAND Flash will see capacity expansion with 80% bit growth, as "NAND shortages have no solution." This year's capital expenditure will exceed NT$40 billion, with monthly capacity expanding to 24,000 wafers by 2027. NT$5 billion is being invested in CUBE high-bandwidth memory, with an increasing number of customers proactively requesting long-term supply agreements.
05. OpenAI Enters Smartphone Market; MediaTek Expected to Secure Exclusive Processor Orders
On May 6, according to the Economic Daily, analyst Ming-Chi Kuo stated that OpenAI is accelerating its push into the smartphone sector, targeting mass production as early as H1 2027. MediaTek is expected to secure exclusive processor orders, with TSMC handling manufacturing. Total shipments are projected at approximately 30 million units for 2027 and 2028 combined.
The OpenAI smartphone is expected to use a customized Dimensity 9600 chip, produced on TSMC's N2P process in the second half of this year. The design focuses on enhancing AI tasks with a dual-NPU architecture. The core philosophy is to fundamentally rethink how smartphones operate—eliminating the need to open individual apps, with users simply telling the AI assistant what they want to accomplish.
06. AI Demand Continues to Tighten; 3nm and CoWoS Capacity Constrained Through 2027
On May 7, TrendForce noted that AI chip demand continues to tighten global advanced semiconductor manufacturing and packaging capacity. 3nm to 2nm wafer production and 2.5D/3D advanced packaging have become critical bottlenecks for the industry.
CoWoS packaging capacity has been in sustained supply shortage since 2023, with the shortage spreading to equipment, substrates, and raw materials. Increasing AI processor sizes means each device consumes more resources. TSMC remains the dominant 3nm supplier; most AI chips will migrate from 4nm to 3nm between H2 2025 and 2026, concentrating massive computing demand at this node.
TrendForce expects severe global 2.5D packaging capacity shortages may ease slightly by 2027, when TSMC's CoWoS capacity will grow by over 60%.