01. NAND Price Hike to Last Until Q3
On May 7, Phison Electronics CEO Kevin Tu announced that the prices of NAND Flash original manufacturers have increased, with the business opportunities of AI edge devices emerging and the market supply and demand becoming tight in the year's second half. NAND Flash original manufacturers have reduced production to adjust market prices, with some original wafer quotes rising by 9% to 11%. The price increase is expected to continue until the third quarter of 2025. The rebound in PC market demand has led to a shortage of PCIe 4.0 SSD controller chips.
02. Uncertainty Risks for MLCC Market Peak Season in the Second Half of the Year Increase
The latest MLCC research report from TrendForce shows that the supply and demand rhythm of MLCC was disrupted in the first half of 2025, and the risk of a lackluster peak season in the second half of the year has increased. OEMs and ODMs have moved orders for North American Chromebooks and some consumer laptops to the first quarter for delivery, resulting in a lackluster traditional education laptop peak season preparation momentum. In the second quarter, the forecasted order volume for Dell and HP education laptops decreased by an average of 20% to 25% quarter-on-quarter. The order and material preparation momentum for AI servers is robust, but the risk of future changes in the international situation cannot be ruled out.
MLCC suppliers are facing challenges such as declining terminal market demand, soaring sales costs, OEM order reductions, and possible requests for price cuts. Against the backdrop of the appreciation of the Japanese yen, the quotes for MLCC commercial and automotive standard products are lower than the levels in the fourth quarter of 2019. The sales profit of high-end standard products for AI servers has declined, with low order demand visibility. The operational challenges for suppliers have intensified, and their pricing and concession margins have been compressed.
03. ON Semiconductor Posts $1.45B in Revenue, with Continued Demand Growth in China and Europe
On May 5, U.S. chipmaker ON Semiconductor released its first-quarter financial report, showing a revenue of $1.45 billion, down 22% year-over-year but better than Wall Street's estimated $1.4 billion; adjusted earnings per share (EPS) were $0.55, higher than the market's expected $0.50. However, due to accounting losses, the company reported a net loss of $486 million.
ON Semiconductor's main product, silicon carbide chips, are widely used in electric vehicle (EV) range systems. In the first quarter, the EV demand in the Chinese and European markets continued to grow, stabilizing orders. However, there was no significant recovery in the South Korean market, and the company has halted investments in its silicon carbide power management IC plant in South Korea, recalling most of its engineers. ON Semiconductor is optimistic about the electric vehicle market in the second quarter, expecting revenue of $1.4 to $1.5 billion and adjusted EPS of $0.48 to $0.58, both above Wall Street expectations.
04. SK Hynix Raises DRAM Chip Prices by Over 10%
In the first and second quarters of 2025, memory prices stopped falling, stabilized, and then rebounded. SK Hynix recently increased the prices of its consumer-grade DRAM chips by over 10%. According to market research firm DRAMeXchange, the fixed transaction prices of general-purpose DRAM products in the personal computer market (such as the DDR4 8Gb specification) rose by 22.22% compared to March. This price increase was influenced by factors such as global supply chain bottlenecks, wafer capacity constraints, and urgent purchasing demands from U.S. customers.
At the same time, the development of artificial intelligence, cloud computing, and 5G technology has led to a significant increase in demand for high-performance memory. International manufacturers have focused their resources on producing high-bandwidth memory (HBM) and DDR5, squeezing the capacity for general-purpose DRAM. Rising raw material costs and geopolitical factors have also increased production costs.
05. Wiwynn Plans U.S. Factory to Cut Labor Costs with Automation
On May 6, the Economic Daily reported that to cope with the U.S. trade tariffs and the demand for AI servers, Wiwynn, after obtaining board approval, invested 1.921 billion yuan to purchase land and buildings in Texas. The company plans to build a new factory near the U.S.-Mexico border and adjust its supply chain strategy by using automation technology to deal with high labor costs. Chairwoman Hung Li-ning said that the company began the layout at the beginning of the year and officially started building the factory in the U.S. in March after the board's approval. She added that the company will continue to make arrangements to deal with tariff issues, and there is no need for outsiders to worry excessively. In addition, after the outbreak of COVID-19, the company implemented a "China-exit" strategy, moving factories from Mainland China to Johor, Malaysia, and plans to expand data center construction to enhance global market competitiveness and maintain stable growth.
06.TSMC Requests 30% Wafer Price Cuts from Suppliers Due to New Taiwan Dollar Appreciation
On May 8, TSMC asked key suppliers to submit revised pricing plans for raw material wafers and other inputs to counter the squeeze on operating profit margins caused by the rapid appreciation of the New Taiwan dollar. Insiders revealed that TSMC is accelerating the cost-cutting plan originally scheduled for next year, pushing for at least a 30% reduction in raw material wafer prices to hedge against exchange rate risks. This move to cut costs demonstrates TSMC's proactive stance in maintaining profitability and stabilizing semiconductor supply chain costs amid global currency fluctuations.