semiconductors

Samsung Electronics announced its official financial report for the third quarter of 2026. The company's revenue for the quarter reached 195.3 trillion Korean won, slightly higher than the previously announced preliminary data, with an operating profit of 107.4 trillion Korean won for the third quarter. The net profit for the quarter was 75.2 trillion Korean won, falling short of market expectations of 83.6 trillion Korean won. Following the release of the financial report, Samsung Electronics' stock price briefly fell, then slightly rebounded, currently up 0.2%.The semiconductor business remains the main source of performance. The operating profit of the chip division for the third quarter was 106.5 trillion Korean won, with significant growth in the foundry business revenue. The company expects double-digit growth in this business's revenue in the fourth quarter. The display business recorded an operating profit of 1.1 trillion Korean won, while the mobile division reported an operating loss of 600 billion Korean won in the third quarter.Samsung Electronics announced that it will distribute a dividend of 4,601 Korean won per share for the third quarter, with a total dividend payout of 30 trillion Korean won. Management expects demand for memory chips to continue to expand in the fourth quarter and stated that the chip supply shortage situation will further worsen next year.

According to Gate market data, NXP Semiconductors (NXPI.O) fell nearly 7% in pre-market trading after the company projected that fourth-quarter sales would be below market expectations.

The Science and Technology Innovation Board Daily cited Wind data stating that by 2026, 76 IPOs had terminated their review, with 13 from the Science and Technology Innovation Board, accounting for 17.1%. In 2025, a total of 50 IPOs were terminated, with only 3 from the Science and Technology Innovation Board, accounting for 6%. The total fundraising scale of terminated IPOs on the Science and Technology Innovation Board in 2026 was 18.248 billion yuan, nearly 5 times the 3.181 billion yuan in the same period of 2025. After entering the fourth quarter, Saikexis and Zhongke Innovation successively terminated their reviews.Among the 13 terminated projects on the Science and Technology Innovation Board, 5 were related to semiconductor and integrated circuit companies, including Wuhan Xinxin, Shanghai Xinyi, Beijing Tongmei, Taosheng Electronics, and Yadian Technology, accounting for approximately 38.5%. Beijing Tongmei was the only project that terminated during the registration phase, accepted on January 10, 2022, submitted for registration on August 1 of the same year, and terminated registration on July 2, 2026, lasting over 4 years. Wuhan Xinxin was accepted at the end of September 2024 and terminated in May 2026, queuing for nearly 600 days, intending to raise 4.8 billion yuan, accounting for about 26.3% of the total intended fundraising of the 13 terminated projects.The duration from acceptance to termination varied significantly. Huihe Medical was accepted on June 30, 2026, and terminated on September 24, taking 86 days, making it the first IPO to withdraw after being selected for on-site inspection this year. Saikexis voluntarily withdrew six months after acceptance, marking the third IPO failure in six years. Huandong Technology was accepted on November 25, 2024, and terminated on September 21, 2026, lasting about 22 months, being the first robot company to terminate an IPO this year, mainly engaged in robotic joint reducers, sponsored by GF Securities. According to the criteria of semiconductors, software equipment, hardware services, etc., there have been 37 IPO listing applications that have become invalid in the Hong Kong stock market this year, compared to 11 in the same period last year.

According to Gate data, the U.S. stock market closed on Tuesday (October 27), with the Dow Jones Industrial Average up 0.03%, the S&P 500 index up 0.60%, and the Nasdaq up 1.18%.Neocloud stocks rose across the board, with Nebius (NBIS) up 11.22%, Cipher Digital (CIFR) up 9.99%, Galaxy Digital (GLXY) up 9.57%, Applied Digital (APLD) up 9.42%, CoreWeave (CRWV) up 7.94%, and IREN up 7.90%.Most optical communication concept stocks strengthened, with Credo (CRDO) up 10.77%, Astera Labs (ALAB) up 10.47%, Applied Optoelectronics (AAOI) up 6.96%, Coherent (COHR) up 6.38%, and Lumentum (LITE) up 5.88%.Storage stocks rose across the board, with Western Digital (WDC) up 6.95%, SanDisk (SNDK) up 3.92%, Seagate Technology (STX) up 3.67%, Micron Technology (MU) up 2.77%, and SK Hynix (SKHY) up 1.92%. Semiconductor stocks also rose, with AMD up 5.45%, Marvell Technology (MRVL) up 4.19%, Broadcom (AVGO) up 4.00%, Intel (INTC) up 3.61%, and both TSMC (TSM) and ASML up 2.94%.

Goldman Sachs' latest research shows that over the past three weeks, semiconductor stock exposure has been able to explain about 54% of the return performance differences between different asset classes, while oil price exposure accounts for only 2%. As the influence of AI trading continues to expand, technology stocks are becoming an important factor driving global market risk appetite and asset performance differentiation.Goldman Sachs pointed out that recent investor risk appetite has been highly synchronized with the relative performance of large technology stocks. Last week, concerns about AI investment returns, financing costs, and capital expenditures intensified, leading to a sell-off in technology stocks and corporate bonds, with Goldman Sachs' risk appetite indicator falling to its lowest level since April 2025. The South Korean stock market has become a typical case of this impact, with the KOSPI rising 3.1% on Tuesday, and SK Hynix and Samsung Electronics increasing by 5.2% and 4.2%, respectively.Due to the high weight of semiconductor stocks in the Korea Composite Stock Price Index, changes in global AI investment expectations directly affect local market performance. Goldman Sachs emphasized that the 54% and 2% figures reflect a statistical relationship within a specific time window and do not imply that AI factors long-term determine global market fluctuations; the impact of high oil prices on inflation, monetary policy, and asset pricing cannot be ignored. Major technology companies such as Microsoft, Google, and Amazon are about to announce their earnings reports, and the market will focus on whether AI demand can continue to grow and whether massive capital expenditures can be converted into actual profits.

According to a report by Reuters, the Bank of Korea warned that if large American technology companies slow down their capital expenditures in the field of artificial intelligence next year, South Korea's semiconductor exports could decrease by $50 billion to $100 billion compared to previous forecasts. The Bank of Korea simulated this scenario in a written response submitted to National Assembly member Ahn Doo-hyeon, assuming a 10% drop in the unit price of South Korean semiconductor products.In this scenario, South Korea's GDP growth rate in 2027 would be reduced by about 0.4 percentage points, and the current account surplus would be far below the previously estimated $430 billion. South Korea's chip exports account for about half of the country's total exports. Capital expenditures by Amazon, Google, Microsoft, Meta, and Oracle are expected to increase from $40 billion last year to $80 billion this year, reaching $110 billion next year.The Bank of Korea pointed out that there is still significant uncertainty regarding AI demand trends and the cycle of the memory chip industry. If technology giants cut back on investments in AI infrastructure, South Korea's chip exports and overall economic growth could be impacted.

Reuters reported on October 26 that amid fluctuations in global tech stocks, Chinese artificial intelligence and semiconductor-related stocks have already declined. The STAR50 index, dominated by mainland artificial intelligence and semiconductor leaders, has dropped 40% in less than four months, with a market value evaporating by about $480 billion. The CSI 300 index has fallen about 20% from its June peak, interrupting nearly two years of gains. Beijing fund manager Dong Baozhen said: The stock market has evolved into a speculative frenzy bull market, and now the bubble is bursting. Traders noted that the decline does not have a clear single trigger factor; high prices, tax bills, and the possibility of the U.S. or other countries banning Chinese equipment from entering data centers have all had an impact. During the same period, the Nasdaq has retreated 6% from its record high three weeks ago.Goldman Sachs stated that AI stocks account for 42% of China's market value and 57% of the trading volume of mainland A-shares and Hong Kong H-shares. When the robotics company Yushu went public, retail investors oversubscribed by about 8,000 times, and since trading began in August, its stock price has fallen by about half; chip company Changxin Storage has dropped more than a quarter in the past month. Mu Xi Integrated Circuit and Moore Threads saw their stock prices rise by about 700% and 400% respectively on their first day of trading last year, but have also fallen by about half since July. Optical module companies Zhongji Xuchuang and Guangxun Technology have dropped about 60% from their June and July peaks, partly due to the U.S. moving towards banning these companies from supplying to U.S. data centers. Hainan investor Chen Wensheng said: He bought Yushu because he felt official support and that there were state-owned background funds investing, but he is currently suffering losses with friends.The STAR50 is currently still about 100 times its past earnings, having fallen from a high of nearly 250 times, with investors comparing it to the Nasdaq 100's price-to-earnings ratio of about 30 times. Hong Hao, Managing Director and Chief Investment Officer of Lotus Asset Management in Hong Kong, said: The current situation will cause many companies trying to go public to pause. Leo Wang, a partner at Beijing Qianchuang Capital, said: Overemphasizing the market capitalization weight of tech companies in major indices will create serious bubbles in certain industries and siphon off funds from other sectors. Wang Zhuo, a partner at Shanghai Zhuozhu Investment Management, said: Chip manufacturers and AI suppliers will ultimately fall into price wars like other Chinese manufacturers. HSBC Research stated that Asian funds have generally been selling over the past three months but are still overweight in China; Goldman Sachs' updated recommendation list this month includes Zhongji Xuchuang and Changxin Storage. The China Securities Regulatory Commission did not immediately respond to Reuters' inquiries; Chairman Wu Qing met with market participants earlier this month to hear suggestions for improving the capital market.

The U.S. Department of the Treasury has released proposed rules for the implementation of the COINS Act, planning to further expand restrictions on foreign investments in sensitive technology sectors concerning certain "countries of concern." The current system primarily covers entities related to China, and the proposed rules aim to tighten restrictions in areas such as AI and semiconductors, extending the regulatory framework to more sensitive technologies and countries.In the field of AI, some investments that can still be made under the current rules after declaration are proposed to be further prohibited; in the semiconductor sector, high-bandwidth memory, photonic chips, and radiation-resistant chips are also included in the scope of stricter restrictions. Meanwhile, biotechnology has been added as a key regulatory area, involving directions such as brain-computer interfaces and automated laboratory software.

According to Gate market data, U.S. semiconductor stocks rose broadly before the market opened, with SK Hynix up 5.5%, SanDisk up 2.8%, and Micron Technology up 2.62%.

NVIDIA expects that with the support of capacity expansion in the United States, Taiwan, and Singapore, the total semiconductor testing capacity in 2027 will double compared to 2026.

According to South Korean media THE ELEC, Tesla and SpaceX, under Elon Musk, are in contact with South Korean materials, components, and equipment companies for the semiconductor manufacturing project Terafab. Some companies have signed non-disclosure agreements and are discussing supply categories. From October 13 to 15, relevant personnel visited about 10 South Korean company booths at Semicon West 2026 in San Francisco to confirm products and capacities and propose follow-up discussions, many of which have been ongoing for several months.ENF Technology, Asflow, and G&G Intech are involved in this initial contact, focusing on process materials, piping parts and valves, and wastewater reuse equipment, respectively. Mico's cleaning subsidiary Komico signed a tripartite non-disclosure agreement with Tesla and SpaceX about a month ago to discuss cleaning services for the Texas R&D test line. Unisem signed a non-disclosure agreement regarding environmental protection equipment such as exhaust gas treatment, while Dongjin Semichem is discussing materials such as diluents and phosphoric acid related to the Texas plant. Hanmi Semiconductor is discussing thermal compression bonding equipment, HPSP will supply a high-pressure hydrogen annealing device to the R&D line, and testing socket company ISC is exchanging samples and design information.Terafab is located in Texas and was announced to be jointly promoted by Tesla, SpaceX, and xAI in March of this year. The independent legal entity and equity structure have not yet been disclosed. The goal is to reach a monthly production of 1 million wafers within 10 years, with an initial investment of $16.8 billion and the hiring of over 3,000 people. SpaceX signed a tax reduction contract with Texas earlier this month and has begun construction. The industry expects the initial facility, which will produce 100,000 wafers per month, to be completed before 2030. Initial uses include Tesla's autonomous driving and robotics chips, as well as SpaceX's satellite and space data center chips.

Semiconductor analyst Jukan shares a commentary translated into English by him, authored by a salesperson from a local Chinese sell-side institution. The individual states: In mid to late September, hardware quickly transitioned into a downward wave, with China and South Korea adjusting first, experiencing deeper declines and longer durations, followed by Japan, Taiwan, and the semiconductor ETF SOXX weakening subsequently; there is significant divergence in the market regarding whether AI is entering a mid-cycle collapse, but there is less controversy about the industry still advancing.The individual summarizes the views of interviewed investors: High long-term interest rates in the U.S., capital expenditures beginning to rely on external financing and competing for funds in the market, multi-layered leverage accumulation, and tight funding are the main reasons for this round of decline, with companies like CoreWeave experiencing a noticeable deterioration in financing structure and cost burden. Model invocation prices are decreasing, but capital expenditures and supply chain costs are difficult to reduce quickly, making short-term investment returns hard to realize. ASML and TSMC's guidance this season is strong, but near-term pressures cannot be ruled out; the bullwhip effect and differences in value chain levels may cause volatility to be greater than expected.The individual also mentions that use cases beyond coding are emerging in scenarios such as SaaS and AI drug development, which may gradually alleviate investment return concerns and expand demand. His personal judgment: Before more evidence emerges, the current situation resembles a high-volatility phase rather than a collapse that has already begun; the decline may not yet be over, and hardware leadership may give way to applications. Even if control of both houses changes in the midterm elections, the impact may mainly be limited to constraints on certain data center projects, and the U.S. earnings season needs to verify the performance of large technology companies.

According to Gate market data, U.S. stocks opened with the Dow Jones up 0.46%, the S&P 500 down 0.4%, and the Nasdaq down 1.29%. The chip sector opened lower for four consecutive days this week, with SK Hynix (SKHY.O) and SanDisk (SNDK.O) dropping 6%, Micron Technology (MU.O) down 3.9%, Western Digital (WDC.O) down over 5%, and NVIDIA (NVDA.O) down over 3%.

According to a report by Reuters, reprinted by Nikkei Asia, the union representing employees at Micron Technology's Taoyuan plant in Taiwan announced on Wednesday that it has obtained authorization for a strike, with the focus of the dispute being the company's bonus plan. The union stated that 1,994 members voted in favor of the strike, accounting for 99% of the voters, while details such as the timing of the strike are still under discussion. Micron has approximately 15,000 employees in Taiwan, with independent unions in Taoyuan and Taichung, and the two unions together represent over 80% of Micron's employees in Taiwan. Micron Taiwan is the company's largest manufacturing base.Taiwan is a key production site for Micron's DRAM and high-bandwidth memory, with related chips being important components for AI servers. Mediation with the Taoyuan union did not reach an agreement in September, and the Taichung union is still in negotiations. In September, Micron announced that it would distribute bonuses for the fiscal year 2026 to over 60,000 employees worldwide, stating that the company had experienced an "extraordinary year," with Taiwanese employees receiving a cash bonus of 1 million New Taiwan Dollars, approximately 31,400 US dollars. The Taoyuan union stated that the plan did not address the request for a permanent profit-sharing mechanism and criticized Micron for announcing the bonuses without first reaching an agreement with the union during the mediation period.