01
ASML raises its 2026 outlook and continues expanding EUV and DUV equipment capacity
Lithography EquipmentEUVDUV
On July 15, ASML reported second-quarter revenue of EUR 9.33 billion and net profit of EUR 2.92 billion, both above market expectations. Supported by demand for AI chipmaking equipment, the company raised its 2026 full-year revenue outlook to EUR 43–45 billion and said it plans to keep increasing EUV lithography capacity over the next two years while also expanding DUV supply for mature-node demand.
Orders for ASML’s additional EUV output are already largely booked through the end of 2027, and China accounts for about 20% of its sales.
R&A View: ASML’s expansion helps ease advanced-node equipment bottlenecks, but there is still a long lead time from tool delivery and installation to actual fab output ramp-up. In the near term, capacity related to 2nm, 3nm, and advanced packaging may remain tight. Rising DUV demand also shows that mature-node expansion remains important despite the current AI investment cycle.
02
TSMC to add two advanced packaging plants in Chiayi and keep expanding CoWoS capacity
Advanced PackagingCoWoSAI Chips
On July 13, Taiwan authorities said TSMC will add two advanced packaging plants in the Chiayi Science Park, bringing its planned advanced packaging plant count there to four. The first plant has already entered mass production, and the second is expected to come online in stages.
The expansion is mainly aimed at meeting rising customer demand for CoWoS and other advanced packaging technologies used in AI chips. The projects are expected to create more than TWD 300 billion in annual output value and over 9,000 jobs.
R&A View: The current AI chip bottleneck has already extended from advanced wafer fabrication into advanced packaging. Additional CoWoS capacity can improve medium- to long-term supply, but final delivery still depends on whether substrates, silicon interposers, HBM, testing, and related materials can scale in parallel. Procurement teams should track the full advanced-packaging ecosystem, not just GPU wafer capacity.
03
Bosch begins SiC chip sample production at its first U.S. semiconductor plant
SiCPower SemiconductorsU.S. Manufacturing
On July 13, Bosch announced that its semiconductor plant in Roseville, California, has started sample production of silicon-carbide chips. This is Bosch’s first semiconductor manufacturing base in the United States. Bosch acquired the facility in 2023 and invested about USD 2 billion in the conversion, including USD 225 million in support from the U.S. CHIPS Act.
The plant mainly targets SiC power semiconductors for high-voltage EV systems, though the products can also serve AI data-center power and energy applications. Commercial production is expected to begin later this year.
R&A View: Bosch’s U.S. SiC build-out reflects how automotive and data-center customers are pushing for localized power-semiconductor supply. However, sample production is not the same as stable mass production. Yield, customer qualification, ramp-up speed, and actual shipment timing still need close monitoring. Automotive and industrial customers should not treat the new capacity as fully available just yet.
04
India adds USD 13.3 billion in semiconductor investment to strengthen local manufacturing
IndiaSemiconductor InvestmentLocal Manufacturing
On July 15, India approved an expansion of its national semiconductor development program, adding INR 1.28 trillion, or about USD 13.3 billion. The plan is designed to attract more investment in wafer manufacturing, OSAT, and the broader electronics supply chain while reducing dependence on imported semiconductors.
The new funding shows India’s intention to strengthen its position in global electronics manufacturing and semiconductor supply chains, competing with localization efforts in the United States, Europe, Japan, and Southeast Asia.
R&A View: India’s policy support can help expand the long-term semiconductor manufacturing map, but infrastructure, talent, equipment, materials supply, and customer qualification will still determine how fast projects become real production. In the near term, India is more likely to build scale first in packaging, testing, and electronics manufacturing than in advanced wafer fabrication.
05
U.S. plans new AI and semiconductor regulations, increasing export-compliance risk
Export ControlsAISemiconductor Compliance
On July 14, a U.S. Commerce Department official responsible for export controls said new regulatory actions targeting AI and semiconductors are coming. While specific rules have not yet been published, the future measures could further affect cross-border supply of advanced AI chips, semiconductor equipment, and related technologies.
This uncertainty may lead original manufacturers, distributors, and end customers to face stricter checks when confirming orders, export licenses, and end-use declarations.
R&A View: For the electronic-components supply chain, policy risk is now becoming as important as lead time and supply stability. Orders involving advanced computing, AI servers, and high-performance semiconductors should confirm ECCN classification, country of origin, end user, end use, and transshipment route in advance to avoid shipment delays caused by licensing or compliance review.
06
Apple looks to CXMT for China DRAM supply, raising the strategic value of conventional memory
DRAMChina MarketConventional Memory
On July 15, Reuters Breakingviews reported that, against a backdrop of tight global DRAM supply, Apple is considering sourcing some DRAM products from Chinese memory maker CXMT for devices produced and sold in China.
As Samsung, SK hynix, and Micron devote more resources to HBM and high-end server memory, conventional DRAM capacity is coming under pressure. Apple has also felt the impact of rising memory costs, with some iPad and MacBook products facing price pressure.
R&A View: AI-driven supply pressure is not limited to HBM. The shift of high-end capacity is raising the strategic value of conventional DRAM. For smartphone, notebook, industrial, and consumer-electronics customers, conventional DRAM pricing, supply geography, and compliance requirements may all need to be re-evaluated. Because CXMT is linked to U.S.-related restrictions, cross-region sourcing should also verify end-market and compliance exposure in advance.
07
SK hynix expects the memory supply gap to widen further in 2027
HBMServer DRAMMemory Supply
On July 13, SK hynix CEO Kwak Noh-jung said the memory industry may face more serious supply shortages in 2027, with market demand likely to exceed the company’s actual production capacity for a prolonged period.
Although AI-related semiconductor stocks have recently shown volatility, demand for HBM, server DRAM, and high-capacity memory remains strong. Suppliers are also staying cautious on expansion, reflecting a desire to avoid excessive long-term capacity additions during a strong cycle.
R&A View: This suggests the current memory tightness may not be only a short-term inventory issue, but a structural situation in which AI demand is growing faster than capacity can be released. Customers should improve mid- to long-term forecast accuracy and pay closer attention to long-term supply agreements, product allocation, and alternate-part qualification, especially for server, networking, automotive, and industrial programs.
08
Japanese electronics and semiconductor orders rise as some companies worry about capacity limits
Japan ManufacturingElectronics ComponentsOrder Growth
The Reuters Tankan survey released on July 14 showed Japanese manufacturing sentiment remaining positive. Supported by demand related to memory, AI servers, and semiconductor equipment, orders for electronics components and chip-related products generally increased.
Some precision-equipment companies said current order volume and value have reached high levels, and they are beginning to worry about whether existing production capacity can meet future demand.
R&A View: Japanese suppliers cover many upstream segments, including semiconductor materials, precision equipment, passives, connectors, and other electronic components. Rising orders show AI demand spreading into a broader range of upstream equipment and basic components. Procurement teams should monitor lead-time changes among Japanese suppliers, especially for higher-spec materials, equipment parts, connectors, and passives.
