Many people ask me why semiconductor equipment and materials have surged. The core reason is that all segments of the AI supply chain are raising prices. If you add them all up, the midstream and downstream customers of the entire industry simply cannot accept it.

To break this deadlock, there are only two methods. One is new technological innovation, such as optical modules going from 800G, 1.6T, 3.2T to CPO, and PCBs evolving from traditional substrates to the glass substrates now proposed by Corning. However, the path from proposal to mass production of new technologies is too long to solve the current problem.

Only one method remains: expanding production capacity. This is what the United States and South Korea are doing now, and it also provides development guidance for domestic semiconductor equipment and materials.

This is the core reason.