01

Company Trend（July.20）

Memory Big Three Halt In-House CXL Controller Development, as Outsourcing Model Reshapes Supply Chain Division of Labor

According to semiconductor industry reports on the 20th, Samsung Electronics, SK Hynix and Micron have all stopped developing their own CXL (Compute Express Link) controllers, despite previously making major investments in this next-generation semiconductor technology. Micron was the first to terminate its proprietary controller development project and has shifted to PrimeMars’ solution. SK Hynix recently formally notified key partners that it would stop in-house development, with relevant R&D personnel reassigned to the processing-in-memory (PIM) field. Samsung Electronics will use its self-developed controllers only for internal R&D, while excluding them from commercial projects. For products sold externally, the company will instead procure controllers from fabless companies. The three manufacturers had originally planned to sell high-priced finished “integrated CXL modules” that combine self-developed controllers with DRAM. However, large data center customers, seeking to reduce infrastructure construction costs, prefer a “disaggregated” architecture: connecting CXL controllers separately to system motherboards while using standard DRAM DIMMs. The shift is driven by concerns over “self-cannibalization.” Forcing the adoption of expensive integrated products could weaken demand for standard DRAM DIMMs, which remain a core revenue source for memory manufacturers. The market gap created by this shift is expected to be filled by fabless companies such as Montage Technology, Astera Labs and PrimeMars.

Commentary: The simultaneous halt of in-house CXL controller development by the three memory giants marks a key turning point in the commercialization path of CXL. Their decision to outsource controller design to specialized fabless companies is essentially a return to the more efficient “design–manufacturing” division of labor in the semiconductor industry. The core logic behind this decision lies in commercial reality: developing CXL controllers in-house requires massive investment, and forcing the adoption of high-priced integrated products could instead erode demand for standard DRAM, their core profit source. Against the backdrop of continued strong demand for standard DRAM driven by AI, these giants are unwilling to use a high-cost new product to “kill” their cash-cow business.

From an industry trend perspective, this shift may not be negative for the long-term development of the CXL ecosystem. Specialized fabless companies have greater flexibility and cost advantages in controller design. The withdrawal of the three memory giants opens up market space for companies such as Montage Technology and Astera Labs, and is expected to accelerate the standardization and cost reduction of CXL controllers. The return to a division-of-labor model also validates the ecosystem efficiency of the semiconductor supply chain, where each participant focuses on its own core role: memory giants concentrate on wafer manufacturing and DRAM innovation, while controller design is handled by specialized companies. This structure may accelerate the large-scale deployment of CXL technology in data centers.

02

Market Trend（July.21）

Glass Packaging Commercialization Accelerates Across the Industry, as AI Chip Size Breaks Physical Limits and Drives Materials Revolution

As AI chip package sizes rapidly approach the limits of traditional materials and manufacturing systems, glass substrates are moving from the laboratory into a critical phase of supply chain validation. TSMC has already entered mass production of CoWoS packages measuring 5.5 times the reticle size in 2026, and plans to launch a 14-reticle-size version in 2028, capable of integrating around ten large compute dies and twenty HBM stacks. Industry players across the supply chain, including Intel, Samsung, SK, LG, UMC, ASE, Corning, and AGC, have all incorporated glass into their advanced packaging roadmaps. Glass is penetrating the packaging ecosystem in multiple forms, including temporary carriers, glass-core substrates, glass interposers, through-glass vias (TGV), and glass bridges. Samsung Electro-Mechanics has already built a pilot line at its Sejong site. LG Innotek aims to advance mass production between 2027 and 2028, while Absolics, a subsidiary of SKC, is conducting customer reliability evaluations. SEMI forecasts that the glass-core substrate market will achieve a compound annual growth rate of 67.2% from 2028 to 2040.

Commentary: The growing attention around glass packaging is essentially the result of an intensifying conflict between AI chips’ rigid demand for “larger area, greater dimensional stability, and higher-density interconnects” and the physical limits of organic substrates. As package sizes expand from several dozen millimeters square to more than 100mm, shrinkage, warpage, and alignment errors in organic materials increase nonlinearly. With its higher rigidity and superior dimensional stability, glass has become an inevitable choice for extending the advanced packaging roadmap.

From a competitive landscape perspective, glass packaging is reshaping the industrial boundaries and supply chain structure of advanced packaging. Intel is extending downward from processor architecture into glass substrate manufacturing; TSMC is working with substrate suppliers to steadily advance CoPoS alternative solutions; Samsung is mobilizing internal resources across foundry, display panels, and substrates for coordinated development; and UMC is entering through post-TGV processes such as RDL and CMP, leveraging its existing fab capabilities to migrate silicon interposer processes onto glass platforms. The once clearly defined boundaries among materials suppliers, substrate makers, wafer fabs, and OSAT companies are becoming increasingly blurred.

03

Company Trend(July.22)

Wistron Opens New D1 Plant in Texas, Jensen Huang Attends Ceremony as First U.S.-Made GB300 Compute Board Enters Mass Production

On July 22, Wistron held the opening ceremony for its new D1 plant in Texas, United States. Nvidia CEO Jensen Huang attended the event and joined Wistron Chairman Simon Lin for the unveiling ceremony. The new D1 plant involved investment of nearly USD 700mn and covers approximately 324,000 square meters. The facility adopts Nvidia accelerated computing technologies and integrates open frontier models such as Nemotron and Cosmos, as well as Omniverse and Metropolis. Through digital twin technology, the plant optimizes facility design, production processes, and operational efficiency. The D1 plant produced the first Nvidia GB300 compute board in the United States and has successfully entered mass production. Wistron Chairman Simon Lin said the new facility carries out highly integrated advanced smart manufacturing and has already begun mass production of the Nvidia GB300 Grace Blackwell Superchip. In the future, it will also produce the Nvidia Vera Rubin Superchip. The opening of the D1 plant is only the first phase of Wistron’s North Texas expansion. The upcoming D2 plant is expected to be at least twice the size of D1, and the company has already begun considering third and fourth sites to reserve manufacturing space for next-generation AI products and future demand. Jensen Huang said Nvidia’s demand for AI servers is doubling every year. The capacity of the new D1 plant accounts for only 5% of Nvidia’s total manufacturing volume, meaning more factories will be needed to keep pace with strong AI demand.

Commentary: The opening of Wistron’s new D1 plant in Texas marks a substantive step forward in the “Made in America” push for Nvidia’s AI server supply chain. The D1 facility has achieved mass production of the first GB300 compute board in the United States and has already planned future production of Vera Rubin. This shows that Nvidia is further expanding its U.S. manufacturing footprint on top of its existing Asian supply chain, building a global multi-site supply system. Jensen Huang’s personal attendance and his statement that “D1 capacity accounts for only 5%” not only represent an endorsement of Wistron, but also signal Nvidia’s urgent demand for U.S.-based capacity. With Nvidia’s AI server demand doubling every year, this is clearly only the beginning.

From an industry trend perspective, Wistron’s D1 plant model has strong demonstration value. By adopting Nvidia accelerated computing technology, digital twin optimization, and open model integration, the plant turns AI manufacturing itself into an AI application scenario. This “using AI to build AI” smart factory model may become standard configuration for future AI hardware manufacturing. For China’s domestic supply chain, Wistron’s expansion in Texas means that global AI server manufacturing capacity is becoming more geographically diversified, while North American supply capabilities continue to strengthen. Domestic contract manufacturers need to accelerate upgrades in technical sophistication and smart manufacturing capabilities to cope with the competitive pressure brought by the restructuring of global capacity deployment.

04

Company Trend(July.24)

Siemens Acquires French EDA Company Defacto Technologies, Strengthening RTL Design Automation and SoC Integration Capabilities

On July 21, Siemens officially announced the acquisition of Defacto Technologies, a privately held EDA software company focused on the RTL design field and specializing in automated SoC design creation and integration. Founded in 2003 and headquartered in Grenoble, France, Defacto Technologies has spent more than two decades developing expertise in RTL design. Its technology complements Siemens’ existing EDA solutions by extending end-to-end continuity across the SoC design lifecycle. From early-stage design creation to downstream implementation, verification, and signoff, Defacto Technologies supports advanced design workflows and enables automation across connectivity, timing-constraint, and power-intent flows. The specific terms of the acquisition were not disclosed.

Commentary: Siemens’ acquisition of Defacto Technologies is another example of the ongoing consolidation trend in the EDA industry. Defacto’s accumulated expertise in RTL design automation can help fill gaps in Siemens’ EDA toolchain at the front end of chip design, enabling full-process continuity from design creation to verification and signoff. As chip design complexity continues to rise, especially with surging demand for system-level design automation driven by AI chips and Chiplet architectures, front-end and back-end collaboration in EDA tools is becoming increasingly critical. Siemens’ decision to strengthen its weak points quickly through acquisition rather than in-house development reflects how leading EDA vendors are using acquisitions to compete for technological high ground in specialized segments.

For China’s domestic EDA industry, Siemens’ acquisition once again confirms that “full-flow platformization” is the core competitiveness of the EDA sector. Most domestic EDA companies remain focused on breakthroughs in point tools, while gaps still exist in M&A integration capabilities and the construction of full-flow solutions. The acquisition of Defacto Technologies, a long-established European EDA company with more than two decades of specialization, also suggests that domestic EDA companies could likewise become acquisition targets for international giants. How to build ecosystem barriers while maintaining independent development is an issue worth serious consideration.

05

Market Trend(July.20)

China’s Integrated Circuit Exports Rise 88.7% YoY in First Half, as AI Demand Drives Rapid Growth in Electronics Exports

On July 20, China’s State Council Information Office held a press conference on industrial and information technology development in the first half of 2026. Wang Weiming, Chief Engineer of the Ministry of Industry and Information Technology, said that in the first half of the year, China’s integrated circuit exports denominated in RMB rose 88.7% YoY, while exports of electronic components increased 62.6% YoY. Wang noted that strong global demand driven by artificial intelligence and the green, low-carbon transition has boosted sectors including electronics, specialized equipment, general equipment, automobiles, and electrical machinery. These industries contributed more than half of China’s industrial economic growth. Meanwhile, the added value of sectors such as integrated circuit manufacturing and electronic specialty materials manufacturing maintained double-digit growth. In the first half of the year, industrial production grew steadily. The added value of industrial enterprises above designated size increased 5.4% YoY, with 32 of the 41 major industrial categories posting growth. The shares of equipment manufacturing and high-tech manufacturing in the added value of industrial enterprises above designated size rose by 1.9 percentage points and 0.9 percentage points, respectively, compared with the first quarter. Output of products such as industrial robots and service robots also maintained double-digit growth.

06

Policy Trend(July.21)

Shenzhen Establishes RMB 10bn Major Industrial Ecosystem Fund, Targeting Strategic Emerging Industries Including Semiconductors and AI

According to Shenzhen Special Zone Daily, Shenzhen Zhongtou No. 1 Major Industrial Ecosystem Development Private Equity Investment Fund Partnership was recently officially registered and established, with total fund size of RMB 10bn and a first-phase size of RMB 3.94bn. The fund was initiated by Shenzhen Major Industry Investment Group, together with state-owned capital platforms including ABC Capital, Qianhai Financial Holdings, Qianhai Technology Innovation, Foshan Innovation and Entrepreneurship Investment Co., Ltd., ABC Financial Asset Investment Co., Ltd., and Ningbo Yongyuan Investment Fund Co., Ltd., as well as the Renmin University of China Education Foundation. Shenzhong Investment Capital, an affiliate of Shenzhen Major Industry Investment Group, serves as the fund manager, while ABC Capital acts as the general partner. The fund will position itself as patient capital, strategic capital, and critical capital. It will focus on “20+8” strategic emerging industries, including semiconductors and integrated circuits, artificial intelligence, and smart terminals. The fund will aim to address weak links in industrial and supply chains, with a focus on supporting breakthroughs in key core technologies, cultivating hard-tech companies, promoting industrial M&A and integration, and attracting and retaining upstream and downstream companies across industrial chains. It will also coordinate and connect high-quality resources such as major integrated circuit projects and innovation platforms, accelerating the development of an innovation ecosystem for core industries including next-generation information technology and high-end manufacturing.

07

Company Trend(July.23)

Chinese Smartphone Makers Including OPPO and vivo Reject Samsung’s Q3 Memory Price Hikes, as Downstream Resistance Intensifies

On July 23, according to multiple media reports, several Chinese smartphone manufacturers, including OPPO and vivo, have clearly rejected Samsung Electronics’ memory chip price increase quotations for the third quarter of 2026. Since the second half of 2025, consumer-grade DRAM and NAND flash supply has remained tight, as AI data center buildouts have absorbed substantial memory production capacity for HBM. Entering 2026, contract prices for DRAM and NAND flash have risen sharply for several consecutive quarters, with the overall increase being substantial. Li Jie, President of OnePlus China, said that overall procurement costs for smartphone memory have risen significantly during this round of price hikes. At present, procurement costs for 12GB LPDDR5X memory and 1TB flash storage have increased notably from previous levels. The share of memory chips in smartphone bills of materials has risen from the previous 10%–15% to a common range of 20%–30%, with the proportion even higher in high-end configurations. Although Samsung’s latest quotation increase is already significantly narrower than in the previous two quarters, downstream manufacturers have taken a firm stance. However, in the short term, even if downstream brands slow the pace of memory inventory replenishment, the overall supply-demand imbalance in mobile memory semiconductors is unlikely to change.