Hyundai Motor Securities – Field Trip Report on Japanese and Taiwanese Companies

Overview

English translation of Hyundai Motor Securities field trip report analyzing HBM market dynamics, SMIC progress, and HBM localization efforts in China. Covers expansion of AI semiconductor ecosystem in U.S., Japan, and China.

Key Findings

U.S. & Japan Market Expansion

• AI semiconductor demand driven by both existing cloud service providers (CSPs) and new projects
• Project examples: Stargate and Cristal showing expanded demand momentum
• New datacenter construction accelerating semiconductor demand

TSMC Expansion Plans

• U.S. Fabs: Planning 6 fabrication plants, 2 back-end process plants, 1 R&D center
• Investment Scale: Total USD 165 billion investment commitment
• Taiwan Expansion: 5 new 2nm fabs in Kaohsiung (in addition to existing Hsinchu facility)
• Geographic Diversification: Reducing China dependence while expanding global capacity

HBM Market Dynamics

• Vertical surge in HBM demand expected H2 2025 and H2 2027
• Multiple vendors ramping production capacity
• Supply chain investment accelerating across Asia

China Localization Strategy

• Concurrent efforts to localize HBM production domestically
• Parallel AI semiconductor initiatives
• Goals to reduce dependence on foreign suppliers

Investment Implications

• TSMC capital deployment at historic levels
• Equipment vendors (ASML, Applied Materials) benefiting
• Semiconductor supply chain tightness likely to continue
• China's localization push creates competitive pressure

Source

• File: Hyundai Motor Securities – Field Trip Report on Japanese and Taiwanese Companies.pdf
• Location: /sessions/laughing-busy-galileo/mnt/Dropbox/_Quick drop/

Related

• HBM-Supply-Chain
• TSMC-Expansion
• Semiconductor-Supply-Dynamics
• AI-Chip-Ecosystem