Winbond Electronics Corp

JPMorgan strategist Jay Kwon warned that the memory chip supply-demand shortage will persist for the next two years, driven by both pricing and volume, and that demand broadening from GPUs to CPUs remains underestimated by investors. Kwon also believes the summer correction in memory stocks has ended, noting a 25% drop in the third quarter to date due to peak-out sentiment, but sees strong upside from earnings and valuation metrics. He is bullish on Korean memory stocks, as well as Micron in the US, Kioxia in Japan, and Winbond in Taiwan. Shares of Micron have surged 202% this year compared to a 13% advance for the S&P 500, though they have fallen 10% in the past month on overvaluation fears.

TSMC has announced a collaboration with Taiwanese memory maker Winbond to supply DRAM and HBM chips for AI applications, aiming to address the supply bottleneck currently dominated by SK Hynix, Samsung, and Micron. Winbond will provide DRAM wafers using its proprietary CUBE architecture, which TSMC will integrate into its next-generation Wafer-on-Wafer and SoIC 3D-stacking technologies, creating millions of micro-copper interconnects that slash latency and boost bandwidth. The partnership strengthens TSMC's self-sufficiency in AI chip supply and reinforces Taiwan's strategic role in the global semiconductor industry, countering concerns that TSMC's US factory expansions might reduce the imperative to defend the island. Despite the new entrant, the Big Three HBM suppliers are unlikely to suffer due to overwhelming AI demand, with SK Hynix holding 60% of the market, Samsung 30%, and Micron 10%. Production timelines for the TSMC-Winbond alliance have not yet been disclosed.