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Broadcom reported Q3 FY2026 revenue of USD 29.591 billion, representing an 86% year‑on‑year increase. Its full‑year AI semiconductor revenue guidance was raised to USD 58 billion (+186% YoY), with projections of approximately USD 115 billion for 2027 and USD 230 billion for 2028. The company has commenced volume shipments of the next‑generation TPU 8I to Google, whose performance is benchmarked against NVIDIA’s Vera Rubin, validating the ramp‑up of custom ASIC products.
TSMC’s CoWoS order book is fully booked through 2027, with certain customers facing lead times exceeding one year. MediaTek announced adoption of both TSMC CoWoS and Intel’s EMIB‑T packaging technology. Broadcom, Meta, Google and NVIDIA are also evaluating this alternative solution, accelerating the formation of a dual‑vendor ecosystem for advanced packaging.
NVIDIA is reportedly set to finalise a nearly USD 14 billion acquisition deal for Hugging Face this week. NVIDIA climbed more than 3% overnight to a market capitalisation of USD 5.46 trillion. Dell surged over 15% on better‑than‑expected earnings (Q2 revenue USD 47 billion, net profit +255%), extending the upcycle for AI servers.
Enflame Technology opened for subscription, with its strategic allotment list unveiled. Investors include Tencent, Xiaomi, GigaDevice, Tongfu Microelectronics, ZTE, Hua Hong Group as well as social security and pension funds. The firm posted H1 revenue of RMB 1.12 billion (+279% YoY), marking accelerated capital market access for domestic GPU players.
In-depth Analysis
Optical Communication / Optical Chips：On September 2, market rumours circulated that the US FCC might grant a 12‑month exemption for Chinese optical modules, driving a sharp intraday rally across the optical‑communication sector. The news remains unconfirmed by official sources and requires further monitoring. Upstream, Hongda Electronics has qualified as a supplier for leading optical‑module manufacturers with its single‑layer ceramic chip capacitors and ceramic thin‑film circuits. Relevant H1 revenue reached RMB 151 million, surging 240.79% year‑on‑year. TSMC previously confirmed silicon photonics as the mainstream technology, with certain vendors scheduled to kick off CPO mass production in the second half of this year, sustaining the long‑term industrial trend.
Advanced Packaging & Testing：Beyond tight CoWoS scheduling and customer interest in EMIB‑T, TSMC has added micro‑channel cooling technology to its R&D roadmap. A CoWoS variant capable of integrating 24 HBM dies with a reticle size more than 14 times larger is targeted for 2029. Between 2024 and 2029, the transistor count per AI package will rise over 48‑fold while HBM bandwidth expands 34‑fold, making coordinated upgrades in thermal management and packaging an essential requirement. No major fresh announcements were released today from JCET, Tongfu Microelectronics or substrate suppliers.
SiC / Power Semiconductors: EPFL has developed a novel gallium nitride transistor with a breakdown voltage close to 4,000 V while retaining low on‑resistance. Designed for high‑voltage power electronics in AI data centres, renewable energy systems and electric vehicles, the findings were published in Nature Electronics. Commercialisation will take time, intensifying technological competition among high‑voltage SiC and GaN devices. No notable updates emerged from domestic power‑semiconductor players today.
Storage & Compute Chips: Broadcom’s earnings validated the volume ramp‑up of AI ASICs, NVIDIA’s acquisition of Hugging Face is moving forward, and Enflame Technology’s strategic placement marks a key milestone for domestic computing power. No fresh material announcements were released by memory vendors today (Samsung’s HBM5/zHBM strategy and HBM spot prices at four‑fold contract levels were covered earlier).
Equipment & Materials: Quartz Corp’s high‑purity quartz furnace tubes manufactured with self‑developed silica sand have passed qualification by a domestic DRAM IDM, advancing the localisation of quartz materials. Nanya New Material posted H1 net profit of RMB 461 million (+428.80% YoY), as AI computing power drove volume and price increases for copper‑clad laminates. The investment themes of material price hikes and import substitution remain intact.
Wafer Fabrication: No major developments for the day. SMIC and Hua Hong released no new statements. Hong‑Kong‑listed semiconductor names pulled back alongside the broader market on September 2 (SMIC down nearly 2%, Hua Hong Grace over 4%), reflecting capital‑flow‑driven volatility.
Policy & Macro Environment: MIIT is pushing forward its special initiative to nurture AI application service providers. Jensen Huang and US Commerce Secretary Lutnick spoke at the G20, calling for accelerated AI adoption. Should the rumoured FCC exemption for Chinese optical modules materialise, export outlooks would improve, though official confirmation is still pending. Sino‑US tech rivalry and AI‑compute‑related policies remain the core swing factors.
Daily Investment Tips
1. Broadcom’s guidance implies its AI semiconductor revenue will quadruple within two years. Amid CoWoS capacity bottlenecks, alternative dual‑source packaging solutions such as EMIB‑T are gaining traction. The multi‑path supply chain for custom ASICs and advanced packaging — covering Intel foundry services and the EMIB ecosystem, MediaTek ASIC offerings, plus supporting players including ASE and Unimicron — merits close tracking. That said, Broadcom dipped more than 6% in after‑hours trading, signalling valuation sensitivity amid lofty market expectations.
2. The A‑share electronics sector has seen substantial consecutive net outflows of main capital for two trading days (roughly RMB 20.4 billion on September 1 and RMB 11.3 billion on September 2), with Zhongji Innolight topping the list of net‑sold stocks, pointing to elevated crowding in AI‑hardware trades. Confirmed FCC exemption rules could trigger a rebound for optical modules; investors should await official verification and guard against volatile swings driven by market rumours.
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