01. Morgan Stanley: HDD Shortage to Last Until at Least 2028
On June 16, IT Home reported that Morgan Stanley significantly raised its price targets for Seagate and Western Digital, citing Asian supply chain surveys indicating the HDD cycle is extending, with shortages expected to persist until at least 2028.
Analyst Erik Woodring lifted Seagate's target to $1,035 and Western Digital's to $650, maintaining Overweight ratings on both. HDD demand is growing 40-50% annually while supply is only expanding 30-35%, with the gap driving sustained shortages. Current nearline pricing is below $15/TB, but manufacturers are targeting $25-30/TB over the next two to three years
02. CSP In-House ASIC Wave Accelerates, MLCCs Face Structural Shortage in H2
On June 17, Economic Daily reported that TrendForce noted CSPs' proprietary ASIC platforms are heavily adopting high-end specialty MLCCs, with demand rapidly concentrating. However, supplier capacity expansion is lagging, significantly raising the risk of structural shortages in the second half.
Platforms such as AMD's MI450 and NVIDIA's Vera Rubin have substantially revised MLCC usage upward. In H2, volume production of Google's TPU V8t/i and AWS Trainium4 ASICs will peak demand. Although Murata and others have begun mass-producing high-spec new products, high technical barriers and yield constraints mean new fabs won't reach full capacity until 2027. Lead times for some items have already stretched from eight weeks to twenty weeks, leaving ODMs and system houses without LTAs facing dual pressure of spot premiums and delivery delays.
03. Infineon's €5 Billion Dresden Fab Nears Production
On June 15, SemiMedia reported that Infineon Technologies will inaugurate its €5 billion semiconductor facility in Dresden, Germany on July 2—its largest investment to date, backed by roughly €1 billion in subsidies under the EU Chips Act.
Output will ramp according to market demand, with the potential to ultimately generate up to €5 billion in annual revenue. Rising demand from AI data centers, electric vehicles, and industrial applications underpins long-term growth in power semiconductors
04. Samsung Develops 42nm 3D-Stacked Transistor Structure for Future Logic Chips
On June 17, Samsung achieved a breakthrough in advanced process technology, successfully developing a 3D-stacked transistor structure at the 42nm node, aimed at delivering higher performance and smaller form factors for future logic chips. Meanwhile, Samsung Electronics' combined capex and R&D spending for 2025 reached 89.89 trillion won, ranking first among the world's top ten semiconductor companies.
05. Acer Inventory Nears Record High, Mostly Key Components
On June 17, CNA reported that Acer Chairman Jason Chen stated inventory levels rose from approximately NT$70 billion at the end of Q1 to NT$80 billion currently, approaching an all-time high. The vast majority consists of key components such as memory, while finished goods inventory remains at normal levels.
Chen noted that most components were acquired as "low-price inventory" before price hikes, whereas finished goods carry greater downside price risk. Memory and CPU price increases have slowed but have not reversed. Market reactions fall into three categories: rigid purchases, downgrading specs, and delayed purchases. While shipment volumes may decline, higher average selling prices mean revenue remains unaffected.
06. Japanese Aluminum Capacitor Makers Raise Prices, Major Distributors Follow
On June 18, Economic Daily reported that Japanese manufacturer Nichicon is comprehensively raising aluminum electrolytic capacitor prices, with distributors Nippon Chemi-Con and Zinliang expected to benefit in tandem.
Rapid growth in demand from AI servers, high-performance computing, and data center construction is driving increased demand for high-end passive components. Nippon Chemi-Con stated that AI has become the most important growth driver for the passive component industry, with usage nearly doubling. The supply-demand structure has shifted to supply tightness, and the company expects the price hike cycle to continue into next year. Zenitron, which also covers products from Taiyo Yuden, TDK, and other major Japanese manufacturers, is well-positioned to benefit from the industry-wide pricing trend.