Chipmakers' Q2 Reports Signal Stronger Demand Than Three Months Ago, Price Hikes Begin to 'Spread'

JPMorgan believes global semiconductor Q2 reports released clear bullish signals: first, demand exceeded expectations, with wafer giants like TSMC raising capital expenditures across the board to accelerate capacity expansion; second, the price-hike effect is substantively 'spreading' to equipment and materials, with equipment makers lifting margins through price increases; third, memory giants are locking in extremely high profit floors for years ahead through long-term agreements and substantial prepayments.