Micron Tech leads Asian semiconductor ADRs in overnight trading, AI chip demand boosts sector sentiment
From after-hours trading on July 25, 2026 through early July 26, Asian semiconductor companies' American Depositary Receipts (ADRs) showed mixed performance, with memory chip giant Micron Technology (MU) surging 5.2% to lead the sector; TSMC (TSM) rose 1.1%, Samsung Electronics (SSNLF) edged up 0.3%, while SMIC (SMICY) fell 0.8%. Overall, AI-related chip demand continued to boost market confidence, though some mature process foundries faced capacity utilization pressure.
Micron Technology: Surge in AI memory orders boosts earnings outlook
Micron Technology announced after hours on the 25th that it had received urgent additional orders for its HBM3E high-bandwidth memory chips from two major cloud service providers, totaling approximately $1.2 billion, expected to begin delivery in Q4 2026. On this news, Micron's ADR traded heavily with volume up 40% above the 20-day moving average. Citigroup analyst Christopher Danely noted in a report: "Micron's leading position in HBM is translating into substantial revenue; AI large model training demand for high-bandwidth memory far exceeds expectations. We expect AI-related revenue to exceed 30% of Micron's FY2027 total." Additionally, Micron revealed that its 1γ nm DRAM process yield has climbed above 90%, further solidifying its cost advantage.
Meanwhile, Korean memory giant Samsung Electronics saw a modest ADR gain, but internal sources disclosed that Samsung's Pyeongtaek P4 factory has started mass production of 6th-generation V-NAND, and plans to triple HBM3E capacity in the second half of the year. The market generally believes that the memory chip price upcycle has expanded from DRAM to NAND, and Samsung is poised to benefit from recovering enterprise SSD demand.
TSMC: 3nm capacity fully loaded, CoWoS capacity continues to expand
TSMC's ADR rose 1.1% in overnight trading, hitting an all-time high intraday. On the news front, TSMC announced that its 3nm (N3E) process achieved 100% utilization in Q2 2026, with key customers including Apple, Nvidia, and AMD for AI accelerator chip orders. To meet demand, TSMC plans to increase monthly 3nm capacity from the current 150,000 wafers to 180,000 wafers, with production expected to begin in early 2027. Additionally, CoWoS advanced packaging capacity expansion is on track; the Zhunan AP6 plant has completed equipment installation, adding 8,000 wafers per month, bringing TSMC's total CoWoS monthly capacity to over 40,000 wafers. TF International analyst Ming-Chi Kuo predicts that TSMC's AI-related revenue share will rise from 28% in 2025 to 35% in 2026.
SMIC: Mature process under pressure, revenue guidance below expectations
SMIC's ADR edged down 0.8% to close at $24.05. The company released unaudited Q2 2026 results after hours on the 25th: revenue of $1.89 billion, up 12% YoY but up only 1.5% QoQ; gross margin of 25.3%, slightly below market expectations of 26%. Management stated in the earnings call that while orders for 28nm and above processes are full, capacity utilization for mature process lines below 90nm fell to 78%, mainly due to weak demand for MCUs and display driver chips. For Q3, the company guided 2%-4% QoQ revenue growth, below analyst estimates of 5%.
Nevertheless, the domestic substitution narrative still provides some support for SMIC. According to Jiwei, a leading domestic automotive chip maker has shifted its CIS sensor orders from SMIC to other foundries, but medical and IoT segments are growing faster. BOC International analysts believe: "SMIC faces near-term pressure but benefits from China's semiconductor self-sufficiency drive in the long term. We expect its Shenzhen 12-inch fab to contribute significant incremental output by 2027."
Industry dynamics: Asian semiconductor policies and capacity adjustments
On the policy front, Japan's Ministry of Economy, Trade and Industry announced on the 26th an additional subsidy of ¥180 billion to Rapidus for 2nm process development. Malaysia launched its "National Semiconductor Strategy 2.0," planning to attract RM50 billion in investment over five years, focusing on advanced packaging and EDA tools. On the capacity side, UMC announced that its Singapore 12i wafer fab officially began mass production in July, with initial monthly capacity of 30,000 wafers, mainly producing 22/28nm processes targeting communications and IoT markets. Additionally, SK Hynix's Cheongju M15X fab construction is accelerating, with production expected to begin in 2027, adding 70% more HBM capacity.
Market price movements: Memory chip spot prices edge up
According to DRAMeXchange data, the average spot price of DDR5 16Gb DRAM rose 0.3% to $4.25 on July 26, while DDR4 8Gb held flat at $2.10. On the NAND side, 512Gb TLC die rose 0.5% to $2.88, with enterprise SSD prices under pressure. Market analysts noted that manufacturers' output control and price support strategies continue to take effect, but sluggish downstream PC and smartphone demand may limit gains.
Outlook: AI narrative remains the main theme
Several investment banks emphasized in their latest reports that the Asian semiconductor sector may see short-term profit-taking, but the structural growth trend driven by AI remains intact. Goldman Sachs analyst Hui Zhang wrote: "We recommend overweight positions in memory, advanced process foundries, and HPC packaging related names. TSMC, Micron, and SK Hynix remain core holdings. Also watch Japanese semiconductor equipment stocks such as Tokyo Electron and Disco, benefiting from Asian capacity expansion." However, risks remain from potential escalation of US export controls on semiconductors to China, and weaker-than-expected consumer electronics demand.
As of press time, before the opening of Asian markets, semiconductor futures in Japan and South Korea moved slightly higher, suggesting Asian chip stocks may trade with a mixed firm tone on the 26th.
