Daily Update - June 12th, 2026
TSMC lifts 3nm prices 15% with output already at 175k wafers/month. Google TPUs + Samsung Foundry. UBS calls $2.38T semis by 2027. Plus Corning's multibillion-dollar AWS fiber deal.
TSMC is raising 3nm wafer prices by 15% in the second half of 2026, and it can do it because a record output of 175,000 wafers a month still isn’t enough for Nvidia, AMD, and Apple. Google is talking to Samsung about second-sourcing its next TPU, which tells you the same thing from the buyer’s side. UBS now sees semis at $1.62T next year and $2.38T in 2027 (not long ago, $1T by 2030 was the bold call). Elsewhere, Corning signed a multibillion-dollar custom fiber deal with AWS, and the Nasdaq 100 added Nebius, Astera Labs, CoreWeave, and friends.
Let’s get into it. — Austin & Vik
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TSMC to lift 3nm prices 15% in H2 2026
TSMC plans to raise 3nm wafer prices by roughly 15% in the second half of 2026 as capacity remains tight against AI-driven demand. Monthly 3nm output has reached a new milestone of 175,000 wafers, but supply still falls short of orders from AI customers including Nvidia, AMD, and Apple.
TSMC has also signaled higher pricing across its advanced nodes, citing sustained demand and rising production costs. The company is expanding 3nm capacity at its Fab 18 site in Tainan and ramping additional output in Arizona.
Vik: EMIB is becoming a viable alternative to CoWoS in advanced packaging. Hearing positive vibes on Intel 18A doing well. Samsung 2nm GAA still seems short of yields. 3nm might TSMC’s kingdom today, but the future looks interesting.
Austin: 15% on 175k wafers a month is a sizable chunk of change! Make up a wafer cost, say $20K, and that’s an incremental $3K per wafer. At 175k wafers per month that’s an incremental $525M MONTHLY or $1.5B quarterly! Whew boy. That right there illustrates the temptation to raise prices though (easy money!). TSMC is very thoughtful about the long-term customer relationship impact of such moves. But if there’s ever a time for it… it’s now.
Google taps Samsung for next AI chip
Google is in talks with Samsung to fabricate part of its next-generation AI chip, according to a report from The Information. The discussions come as TSMC, Google’s current primary foundry partner for its TPUs, faces tightening advanced-node capacity amid surging AI accelerator demand.
DigiTimes reports that Google is weighing Samsung’s role as a second source to diversify its supply chain. Neither Google nor Samsung has publicly confirmed the talks, and the specific node, volume, and timing of any Samsung production allocation have not been disclosed. (The Information)
Vik: If its 2nm GAA in Samsung, I don’t buy that the yields are up to snuff that Google would make TPUs on them. It’s not that simple to just change up fabs for chips. It’s a long drawn out effort that usually needs process maturity and volume capacity in place. We’ll see.
Austin: Maybe what Elon saw (Samsung + Tesla deals) was enough to convince Google. But… haven’t heard much on that front lately…
Nasdaq 100 adds Nebius, Astera Labs, Rocket Lab, Teradyne
Nebius (NBIS), Astera Labs (ALAB), Rocket Lab (RKLB), and Teradyne (TER) have been added to the Nasdaq 100 index, alongside CoreWeave (CRWV). The additions bring AI infrastructure, connectivity silicon, launch services, and semiconductor test equipment into the benchmark tracked by the QQQ ETF. Astera Labs supplies PCIe and CXL connectivity chips for AI servers, Nebius operates GPU cloud capacity, and Teradyne sells automated test equipment used across the chip industry. (Nasdaq)
Vik: More companies getting added to index funds means that what are meant to be “safe” investments are becoming increasingly exposed to the AI boom, for better or worse.
Austin: Yeah. Those ETF buyers get exposure and probably don’t know it. It’ll probably help boost prices in the near term with incremental mechanical buying…
UBS sees semis hitting $2.38T by 2027
UBS forecasts global semiconductor industry revenue will rise 118% to $1.62 trillion in 2026 and reach $2.38 trillion in 2027, with memory chip makers leading what the bank calls a generational boom.
The UBS outlook runs slightly ahead of WSTS, which revised its 2026 forecast up to $1.51 trillion from a prior $975 billion, with memory alone projected to climb roughly 250% to over $800 billion this year. By region, WSTS sees the Americas up 112%, Asia Pacific up 87%, and Europe up 58% in 2026, followed by a further 27% gain to $1.91 trillion in 2027. (via Yahoo Finance, dnystedt)
Vik: As nerve racking as this seems, when you see a bubble, run towards it. What’s next? 10T by 2030? Now THAT would be a generational boom!
Austin: Not long ago we were just talking about $1T by 2030. Now $2T in 2027. Memory price increases are doing a lot of the heavy lifting in these numbers though.
Corning inks multibillion-dollar AWS fiber deal
Corning signed a multibillion-dollar agreement with Amazon to supply optical fiber and connectors for AWS data center buildouts, the companies said. The deal centers on higher-density fiber and smaller connector form factors designed to support denser AI compute nodes inside hyperscale facilities. Corning will expand manufacturing capacity to meet the committed volumes under the multiyear arrangement. Light Reading reported the agreement emphasizes scaled customization of fiber and connector products tailored to Amazon’s data center architecture rather than off-the-shelf telecom-grade cabling. (Light Reading)
Vik: Not too long ago that Corning inked a deal with Nvidia too. The rise of optics needs one basic ingredient — optical fiber — and Corning is there to provide it. Its really a 100 year old company that’s more than relevant in the AI age. Do you think anyone will remember NVIDIA in 100 years?
Austin: Corning has a good AI infra story. The custom angle is important: Amazon isn’t pulling SKUs off Corning’s telecom catalog, they’re buying fiber and connectors spec’d to AWS rack architecture, which means higher ASPs and a customer that can’t switch without re-engineering the datacenter.
Press Releases
onsemi introduces GaNEXUS Gallium Nitride Power Portfolio. (ON Semiconductor IR)
Micron selects Bechtel as construction partner for historic New York semiconductor project. (Micron IR)
Applied Materials expands Singapore manufacturing to support AI chip demand. (Applied Materials IR)
Supermicro announces proposed $7.0 billion of equity and equity-linked financing transactions to fund AI orders. (Super Micro Computer IR)
Vertiv unveils end-to-end AI power and cooling solutions to simplify data center infrastructure selection and deployment in North America. (Vertiv IR)
Sector Watch
AI & Compute
Google lowers AI subscription prices, intensifying price war. (TechCrunch)
AMD CFO confirms strong AI demand visibility through 2027. (@TheTranscript_)
Memory
AI memory shortage impacts IT budgets. (EE Times)
DDR4 production restart signals deepening memory shortages and shift in PC architecture. (TrendForce)
Huawei Ascend 950DT lower-end variant features 96GB HBM. (@zephyr_z9)
AI storage demand creates new memory wall. (EE Times)
Foundry & Logic
Taiwan ecosystem reports record May revenues. (ChipsandWafers)
TSMC May 2026 revenue beats with 25% YoY growth. CEO warns of long-term capacity constraints, promises price stability despite AI demand. (tsmc.com)
Optics & CPO
Connectivity revolution or evolution inside data centers? (Semiconductor Engineering)
Networking
Broadcom and Marvell dominate AI network connectivity revenue. (Next Platform)
Power
AI buildout drives 76% power bill jump on largest US grid amid ramping data center demand. (Vertiv IR)
onsemi expands role in NVIDIA MGX ecosystem with 800VDC power architectures. (Power Electronics News)
AI energy demand drives shift to vertical power delivery and smaller modules. (EE Journal)
Advanced Packaging
Hanwha Semitech supplies hybrid bonding cluster to SK Hynix. (zephyr_z9)