Semiconductor Industry 02 (Aug 22 - Dec 26)

[winston]

<Research>G Sachs: DeepSeek's Computing Costs Significantly Lower than Global Peers; Data Centers Expected to Benefit from Public Cloud/ AI Computing Demand

Over the past week, a number of companies released foundation models, including DeepSeek's R1, ByteDance's Doubao-1.5 Pro and Moonshot's Kimi k1.5 foundation models, Goldman Sachs released a research report saying.

As Chinese companies continue to make progress in AI, they attracted the close attention of investors in terms of benchmark compared with global peers.

The above companies posted excellent performance, and their training/ computing capability requirements are significantly lower than their global peers.

Meanwhile, Goldman Sachs noted that Chinese open-source models, including DeepSeek's R1/V3 and BABA-W (09988.HK) 's Qwen have drawn widespread developer interest since their launch due to their transparency and significantly lower pricing per token compared to global models.

On stocks, in terms of applications, the broker continued to see TENCENT (00700.HK) as the most capable of launching To-C AI agent applications, as WeChat is both social and transactional.

For cloud/data centers, Goldman Sachs noted geopolitical uncertainties around chip/ computing capacity constraints and progress in training/ inference cost optimizations.

However, the broker expected the cloud businesses of internet giants (BABA-W is the largest listed company in China in the related business), cloud computing mega providers and data centers such as GDS Holdings (GDS.US) and VNET Group (VNET.US)to benefit from the continued growth in demand for public cloud and AI computing, which will be fueled by increased AI adoption.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

DeepSeek Sparks Landslide in Global Tech Stocks; Nasdaq 100 Futures Dive 2.6% in Early European Session

DeepSeek, a generative AI foundation model in China, became the highest-rated free app in Apple (AAPL.US) ’s US App Store, exerting pressure on global technology stocks.

In the European morning session, the US Nasdaq 100 futures fell 2.6%, and S&P 500 futures sank 1.4%. Nvidia (NVDA.US) slid about 7% in the German stock market, while Amazon (AMZN.US) , Tesla (TSLA.US) and Meta (META.US) also dived more than 2%.

In Japan, Advantest, a supplier to Nvidia, and SoftBank, which is involved in the Stargate AI infrastructure project in the US, tumbled more than 8% each, while Tokyo Electron, a chip equipment manufacturer, plunged 5%.

Malaysian utility YTL Power also cratered 7% in the Kuala Lumpur stock market. The Taiwan and South Korean stock markets, where TSMC and SK Hynix are listed, were closed for the holiday.

DeepSeek launched a free assistant that uses lower-cost chips and data, challenging the market logic that AI will drive the supply chain for chips and data centers.

DeepSeek researchers revealed in an article last month that the DeepSeek-V3 model launched on 10 January was trained using an Nvidia H800 chip at a cost of less than US$6 million.

The market questioned the AI capex of big tech firms, and even worried that the view of the US being a global leader in cutting-edge technology will change, Reuters quoted analysts as saying.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Kenanga downgrades Malaysian tech sector to ‘neutral’ as rising uncertainties plague stocks

By Syafiqah Salim

The emergence of China’s DeepSeek with its lower-cost artificial intelligence (AI) models, escalating US-China trade tensions, and potential US policy reviews are risks hanging over the sector.

The ongoing semiconductor upcycle, now in its 13th month, is expected to continue.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/743641

[winston]

Broad global growth to lift semiconductor sector

Last year, annual global sales reached US$627.6bil, up 19.1% year-on-year (y-o-y) compared with US$526.8bil in 2023.

The record performance last year was primarily driven by strong demand for logic and memory products, fuelled by the growing adoption of artificial intelligence.

Source: The Star

https://www.thestar.com.my/business/bus ... tor-sector

[behappyalways]

US chipmakers who have aggressively fought export controls on Chinese chips for years are not merely fighting against the national interest.

They are seeding the conditions to their own irrelevance.
https://x.com/ChinaBeigeBook/status/1888619866275364882

[behappyalways]

AI demand is rising!
Semiconductor market revenue will increase by 19% annually in 2024.
The top ten are all engaged in AI.
Samsung ranks first in the market and MediaTek is the only Taiwanese factory.

AI需求推升! 2024年半導體市場營收年增19% 前十名都做AI 三星市占第1 聯發科台廠唯一｜非凡財經新聞｜20250216

https://m.youtube.com/watch?v=EC1xNd-P6Sk

[behappyalways]

DeepSeek突破中國科技業想像 華為良率驚人突破成輝達最大威脅？！【#風向龍鳳配】｜CC字幕
https://m.youtube.com/watch?v=25pB1oJZf ... p=2AEKkAIB

[behappyalways]

The "National Guardian Mountain" collapsed!

'25.03.05【豐富│東南西北龍鳳配】Pt.1「護國神山」崩了！

https://m.youtube.com/watch?v=tGLT_43H8BI

[winston]

Malaysia: Signs of seasonal weakness in demand for chips

BIMB Securities has a “cautious” stand on local outsourced semiconductor assembly and test (Osat) companies outlook due to mounting challenges including the escalating US-China trade war, rising operating costs and prolonged competitive pricing pressures.

Local Osat companies are also continuing to struggle in the fourth quarter of 2024 (4Q24) due to their limited exposure to the artificial intelligence or AI-based chip segment, which drove the growth in the semiconductor sales in 2024.

The current cycle began in 2023 and a peak could be formed sometime between 2025 and 2026 which coincides with the ongoing US-China trade tensions that could lead to global supply chain disruptions, rising operational costs, higher inflationary pressures, and a potential slowdown in end-demand.

Source: The Star

https://www.thestar.com.my/business/bus ... -for-chips

[behappyalways]

TSMC Reportedly Pitches JV With Nvidia, AMD, Broadcom To Operate Intel Foundry
https://www.zerohedge.com/technology/ts ... el-foundry