Market Trend（June.3）

Two major advanced packaging projects launched in France, boosting local packaging and testing capacity and Europes semiconductor self-sufficiency

France has recently seen the launch of two major advanced packaging projects, marking tangible progress in Europe’s efforts to strengthen its packaging and testing capabilities. In early June, Foxconn, together with France’s Thales and RF component manufacturer Radiall, established a joint venture named Tessalia and officially broke ground on a new facility. With a total investment of approximately EUR250mn, the project focuses on System-in-Package (SiP) and Fan-Out Wafer-Level Packaging (FOWLP) technologies. The facility will be located in the Nouvelle-Aquitaine region and is scheduled to begin operations in 2029. By 2033, annual output is expected to reach 50 million packaged components, primarily serving the aerospace, automotive chip, 6G communications, and defense chip sectors.

During the same period, STMicroelectronics invested US$60mn to establish a panel-level packaging (PLP) pilot line at its Tours facility. The production line is expected to enter operation in Q3 and will leverage square-panel processing technology to reduce manufacturing costs. Initial mass-production applications will focus on automotive-grade power ICs and industrial MCUs. Both projects have been included in the support list under the European Chips Act. Leveraging resources from local research institutions, they are expected to undertake spillover orders from Europe’s domestic semiconductor foundry sector, reverse Europe’s previous reliance on Asian foundries for high-end packaging and testing services, and strengthen a localized industry chain spanning wafer manufacturing through packaging and testing.

Comments:The concentration of advanced packaging projects in France represents a critical step in Europe’s semiconductor self-sufficiency strategy. In the near term, Europe can leverage Foxconn’s mature packaging technologies and STMicroelectronics’ in-house PLP expertise to rapidly fill gaps in local high-end OSAT capacity, reducing the risks associated with external sourcing across the semiconductor supply chains of European automakers and defense contractors. The implementation of these projects is also expected to stimulate demand for local packaging equipment and materials, while strengthening Europe’s ecosystem for heterogeneous integration. For China’s packaging and testing industry, the rise of local packaging capacity in Europe may divert a portion of overseas orders. However, differentiated opportunities remain in automotive and defense-oriented customized packaging solutions. Domestic OSAT providers can continue to capitalize on their advantages in cost competitiveness and mass-production capabilities by deepening their presence in the mainstream advanced packaging market, while accelerating the development of automotive-grade SiP and panel-level packaging technologies to reinforce their position in the global packaging and testing industry.

02

Company Trend（June.4）

NVIDIA CEO officially confirms: Samsung, SK Hynix, and Micron HBM4 fully certified

During his visit to South Korea, NVIDIA CEO Jensen Huang publicly confirmed for the first time that the HBM4 products from Samsung, SK Hynix, and Micron have all completed NVIDIA’s certification. These three high-bandwidth memory solutions will serve as the standard core components for NVIDIA’s next-generation AI compute platform, Vera Rubin, with all three suppliers already entering mass production and delivery.

Previously, the market widely speculated that NVIDIA would prioritize a single supplier. This full-category certification breaks industry expectations. The Vera Rubin platform began mass production in Q3, with individual AI servers equipped with large-capacity HBM4 modules, supplying global cloud providers and leading AI companies. Huang also revealed that NVIDIA plans to establish a new R&D center in South Korea to accelerate industrial robotics and physical AI research, leveraging South Korea’s mature semiconductor manufacturing ecosystem to strengthen regional supply chain capabilities. Boosted by this positive news, South Korean memory stocks experienced short-term gains, HBM order certainty has further solidified, and the tight supply-demand balance in high-end memory continues, driving momentum across the global advanced packaging and server foundry ecosystem.

Comments:The simultaneous certification of HBM4 products from all three memory suppliers by NVIDIA marks a significant milestone in the diversification of the global high-end memory supply chain. By reducing its reliance on a single supplier, NVIDIA can effectively mitigate HBM supply risks and better secure volume production and delivery of its next-generation AI platforms. For Samsung and SK hynix, the certification further strengthens their leadership positions in the premium HBM market, supports higher profitability for memory products, and helps offset earnings pressure previously caused by weak pricing in the conventional DRAM market.

Meanwhile, technological barriers in the HBM segment continue to rise, making it increasingly difficult for smaller memory vendors to enter the high-end supply chain. The large-scale commercialization of HBM4 is expected to widen the technology gap between leading international players and emerging competitors. At the same time, it also highlights a clear development path for Chinas memory industry. Domestic suppliers can focus on advancing mid-range HBM products and leverage strengths in advanced packaging to gradually expand their presence in selected market segments. As AI compute infrastructure continues to scale, demand for HBM is expected to remain strong. High-end memory will likely continue to serve as one of the most important growth drivers across the semiconductor industry.

03

Market Trend（June.5）

AI growth expectations cool, Samsung and SK hynix shares tumble sharply

South Korea’s memory leaders Samsung Electronics and SK hynix have recently suffered sharp share-price declines. SK hynix fell nearly 9% intraday, while Samsung dropped more than 6% at its lowest point. The weakness in the two companies weighed heavily on South Korea’s semiconductor sector, reversing the strong momentum previously driven by AI-related memory demand. The primary catalyst for the sell-off was the downward revision of AI compute shipment guidance by major international chipmakers, which prompted capital markets to lower expectations for full-year cloud-service-provider capital expenditures. Investors have become increasingly concerned that demand growth for HBM and high-end DRAM may fall short of earlier optimistic forecasts.

In Q1, both companies benefited from robust demand from AI servers, with HBM products enjoying strong order momentum and driving record financial performance. SK hynix reported an operating margin exceeding 70% for the quarter, while Samsung’s semiconductor earnings increased more than 700% YoY. On the supply side, both companies have continued to exercise production discipline, prioritizing capacity allocation toward higher-value HBM products. As a result, supply of conventional DRAM and NAND products has remained relatively tight. However, the recovery in end-market consumer demand has been gradual, leading to slower price increases for mainstream memory products. Combined with fluctuations in the Korean won and a temporary reduction in exposure to South Korean technology stocks by global investors, these factors have triggered a correction in share prices, pushing the memory sector into a short-term sentiment adjustment phase.

Comments:The recent sharp drop in South Korean memory giants’ share prices reflects a post-boom valuation correction rather than a fundamental reversal in the industry. The long-term tight supply-demand balance for high-end HBM remains intact. The market had previously overextended expectations for AI-driven memory price increases; even minor downward adjustments in demand guidance by the leading companies triggered concentrated capital outflows. From a medium- to long-term perspective, the global rollout of AI large models continues to drive server expansion, ensuring persistent HBM demand. Samsung and SK hynix control over 70% of global memory capacity, maintaining industry pricing power. This correction helps purge speculative bubbles in the sector while creating a domestic substitution window for Yangtze Memory Technologies and ChangXin Memory. Chinese memory manufacturers can leverage the differentiated cycle to accelerate technological iteration and capture market share in both mainstream and select mid- to high-end memory segments.

04

Market Trend（June.5）

Global semiconductor equipment sales soar 14% YoY, setting a new quarterly record

According to a recent report from the Semiconductor Equipment and Materials International (SEMI), global semiconductor equipment shipments reached US$36.55bn in Q1 2026, up 14% YoY and slightly increasing 1% QoQ, marking a record high for the quarter. This expansion is primarily driven by substantial capital expenditures across the global AI industry, with leading wafer fabs ramping up advanced logic, HBM-coupled DRAM, and advanced packaging lines. Continuous process node upgrades are sustaining strong equipment demand. SEMI executives note that this strong start confirms the steady rollout of global compute chip infrastructure investment, with advanced manufacturing and heterogeneous packaging emerging as key drivers of equipment procurement growth. Regionally, the Chinese Mainland remains the top equipment buyer worldwide, while South Korea and Japan are increasing orders in line with memory expansion, and Europe and the U.S. are boosting demand through automotive-grade and AI chip fab construction. Leading global equipment vendors are seeing full order books and extended delivery cycles, maintaining high overall market activity in the semiconductor equipment supply chain.

Comments:The global semiconductor equipment market’s robust growth confirms the continuation of the industry’s upcycle, with AI compute demand serving as the core driver throughout the year. Advanced process and packaging equipment remain in chronic short supply, benefiting overseas leaders such as ASML and Applied Materials through strong order fulfillment. China continues to make substantial equipment purchases, securing capacity expansion for domestic wafer fabs. At the same time, tightening export controls on foreign equipment are accelerating domestic substitution, with local etch, deposition, and cleaning equipment vendors reporting full order books, with delivery schedules extending into 2027. However, high-end lithography systems and certain precision process equipment still heavily rely on imports, leaving gaps in domestic R&D capabilities. Global compute infrastructure buildout is unlikely to cool rapidly, sustaining semiconductor equipment market momentum. Domestic equipment vendors can leverage mature process nodes to steadily increase local content penetration, capturing a share of the global equipment expansion upside.

05

Company Trend（June.1）

JCET ramps up AI advanced packaging and testing with new 3D high-density integration facility coming online

On June 1, JCET officially brought its new high-density 3D system integration plant at the Jiangyin Chengdong Base online, with the first batch of production equipment simultaneously installed—marking a critical milestone in the companys advanced packaging capacity expansion. The project features approximately 7,000 m² of high-standard cleanroom space, with equipment debugging scheduled for completion by the end of the month and full-line mass production soon after. The production line focuses on 3D stacking and high-density heterogeneous integration processes, targeting AI compute center power modules and high-performance computing chip packaging markets. Leveraging multi-chip vertical stacking and high-density interconnect technologies, the new line shortens chip circuit paths and optimizes heat dissipation for high-power devices, meeting the current industry demand for compact, high-power-density AI server power modules. With the continuous expansion of global compute infrastructure, high-end advanced packaging orders are steadily increasing. JCET’s overall capacity utilization exceeded 80% in Q1, and the new plant will effectively fill the 3D system integration capacity gap. The project is also part of the company’s annual RMB 10bn capital expenditure program.. In addition to 3D packaging, efforts are underway to industrialize glass substrate FCBGA and CPO opto-electrical co-packaging technologies, continuously improving the frontier advanced packaging technology matrix and further consolidating JCET’s leading position in China’s OSAT sector.

06

Company Trend（June.3）

Xinlian Capital’s CVC fund closes at over RMB 1.6bn, strengthening Chinas semiconductor investment ecosystem

Xinlian Capital recently announced the successful final closing of its first flagship fund, with a total fund size exceeding RMB 1.6bn. The funds cornerstone investor is UNT, while Shanghai Guotou Xiandao and Huatai Zijin joined during the final closing. The LP base brings together state-owned investment platforms, market-oriented Funds of Funds (FoFs), listed semiconductor companies, and banking capital, forming a diversified industrial-capital ecosystem.

The fund adopts a Corporate Venture Capital (CVC) model that combines industry resources with financial capital. Investments will primarily focus on two areas. The first targets domestic bottlenecks in upstream semiconductor equipment, critical materials, and precision components, supporting greater supply-chain self-reliance. The second focuses on high-growth downstream semiconductor application sectors, including AI compute, industrial robotics, and new energy vehicles. As of the funds final closing, it has invested in more than 30 high-quality projects, including Zhongkexin Semiconductor, Xfusion, Alkaidsemi, and Avatr. Several portfolio companies have already entered the IPO application stage. The successful fundraising is expected to accelerate localization across Chinas semiconductor supply chain, support technological advancement among portfolio companies through industrial resource integration, and capture growth opportunities arising from the continued expansion of AI compute infrastructure.

07

Company Trend（June.5）

Wingtech invokes Chinas Anti-Foreign Sanctions Law, files lawsuit against Nexperia Netherlands and seeks RMB 8bn in damages

Wingtech Technology has formally filed a lawsuit against the Dutch entity of Nexperia and several foreign executives, with the case officially accepted by the court and damages claims reaching RMB 8bn. The lawsuit represents a landmark case in which a Chinese semiconductor company is using legal channels to safeguard its rights arising from a cross-border acquisition. The dispute stems from the implementation of regulatory restrictions in the Netherlands. According to Wingtech, Nexperia Netherlands management cooperated with the relevant restrictions, resulting in the company losing management control over its overseas subsidiary. The situation subsequently led to obstacles in conducting audits, non-standard audit opinions in financial reporting, delisting risks, and significant losses to both assets and business operations. Through the litigation, Wingtech is seeking financial compensation and the restoration of management control. At the same time, the company is advancing the localization of Nexperias operations and reallocating automotive chip production capacity to mitigate risks. Although Nexperia Netherlands has expressed a willingness to engage in discussions, no substantive resolution has yet been proposed.

The lawsuit carries broader implications for the semiconductor industry, providing a reference case for Chinese companies seeking to protect their rights in overseas semiconductor acquisitions. The dispute also highlights the growing risks associated with cross-border investments amid geopolitical uncertainty, further accelerating domestic substitution efforts in Chinas power semiconductor sector. Looking ahead, potential constraints on Nexperias European manufacturing capacity could introduce volatility into the global automotive semiconductor supply chain, creating market opportunities for domestic discrete-device manufacturers.