01. Storage Spot Market Partially Diverges, Channel Memory Prices Rise, and Industry SSD Prices Fall
On August 26, CFM reported partial differentiation in the storage spot market. Due to tight resources and reduced inventory, DDR4 memory prices have increased. Channels with limited DDR5 resources have seen some brand manufacturers raise prices, driving minor increases in DDR4 and DDR5 memory prices.
In the industry SSD market, the back-to-school season failed to boost PC customer inventory demands, leading to more bearish market sentiment. Some manufacturers have lowered prices to accelerate sales, causing industry SSD prices to become more flexible.
The embedded market has seen a shift to a more subdued trading atmosphere. The demand side has shown insufficient capacity to absorb high-priced LPDDR4X, slowing down purchases. Most customers are consuming existing inventories, and the market is filled with a strong sense of caution. For embedded eMMC, there is a significant price gap between buyers and sellers, with actual transactions progressing slowly. High-capacity products face greater pressure, but overall short-term prices remain basically stable.
On the upstream resource side, the price of 256Gb Flash Wafer has risen to $2.95, while DDR4 and DDR5 die prices have remained stable.
02. Japan Plans to Build a Semiconductor Supply Chain in India to Reduce Dependence on China
According to the Nikkei on August 28, Japan and India will propose strengthening cooperation in the field of economic security during their summit talks on August 29, with semiconductors at the core. Japanese equipment and materials companies will enter India to help establish a supply chain. Tokyo Electron will launch its first equipment development base in India in September, and AIR WATER INC. will build several new industrial gas plants.
After the Japan-India summit, both sides will reach an "Economic Security Cooperation Initiative," designating semiconductors and mineral resources as key areas and supporting corporate cooperation. Tokyo Electron will set up a research and development base in Bangalore, planning to increase its workforce to 300 people by 2027 and collaborate with the Tata Group to cultivate talent.
03. Strong Industrial Demand Drives Analog Chips
According to foreign media reports on August 25, Analog Devices (ADI) announced its Q3 2025 financial results, with revenue of $2.88 billion, a sequential increase of 9%, and a year-over-year increase of 25%, with double-digit growth across all end markets. The operating profit margin rose to 42.2%, with earnings per share of $2.05, a year-over-year increase of 30%. Looking ahead to the fourth quarter, revenue is expected to be around $3 billion, with growth in industrial, communications, and consumer markets, while the automotive market may see a slight decline. Chief Financial Officer Richard Puccio noted that the order backlog continues to grow, with strong industrial market bookings, and the company is confident in closing out the 2025 fiscal year. Meanwhile, ADI remains optimistic about the recovery of the Chinese market over the next three to five years.
Texas Instruments (TI) reported second-quarter revenue of $4.45 billion, a sequential increase of 9% and a year-over-year increase of 16%, with operating profit of $1.56 billion, up 25%. TI attributed its growth to the broad recovery of the industrial market.
Overall, the strong performance of ADI and TI indicates that the analog chip industry is entering a new growth cycle, with the recovery of industrial demand being the main driving force.
04. Toshiba and SICC Collaborate to Enhance SiC Power Semiconductor Supply and Technology
On August 28, SemiMedia reported that Toshiba Electronic Devices & Storage Corporation of Japan signed a memorandum of cooperation with SICC Limited, a Chinese SiC wafer producer, to enhance SiC wafer characteristics and ensure a stable supply of high-quality substrates. Toshiba is accelerating the expansion of SiC power semiconductors from railway applications to automotive systems, server power supplies, and high-efficiency power conversion fields, aiming to reduce power loss and increase equipment reliability. SICC will play a key role in meeting future material demands.
05. Apple to Produce Chips in TI's New Factory
According to SemiMedia on August 28, Apple will begin producing key semiconductors in Texas Instruments' (TI) new factory, further deepening its commitment to U.S. chip manufacturing. TI is building seven new plants in Texas and Utah, expected to start mass production of 300mm wafers by the end of 2025. Apple CEO Tim Cook said that Apple will use these factories to produce key foundational semiconductors for devices like the iPhone. Although TI does not produce the most advanced chips, its analog and embedded products are crucial for power management, automotive systems, and more. Industry analysts believe that the collaboration between Apple and TI highlights the push to strengthen domestic semiconductor production capacity in the United States.
06. AMD, Nvidia, Broadcom, and Others Compete for Advanced Process Capacity, TSMC's U.S. Plant Production Accelerates
On August 25, the Economic Daily reported that U.S. companies such as AMD, Nvidia, and Broadcom continue to embrace TSMC, driving the accelerated construction of capacity at TSMC's Arizona plant in the United States. There are rumors that the production schedules for TSMC's second and third plants in Arizona have been advanced. The first plant has been moved up to start 4nm production in Q4 2024; the second plant aims to start production in early 2027 or within 2026; and the third plant is expected to start production of N2 and A16 processes around 2028.
Support from the U.S. customer base is key to the rapid growth of TSMC's new U.S. plants. However, TSMC also acknowledged that over the next five years, starting from 2025, overseas wafer fabs' production will lead to gross margin dilution, with an initial impact of about 2% to 3% per year, expanding to 3% to 4% later on. TSMC emphasized that it will manage the related impacts by scaling up, improving cost structures, and collaborating with customers and suppliers.