Tongfu Microelectronics forecasts sharp first-half profit rise on AI and memory demand

Tongfu Microelectronics' profit surge signals a convergence of AI-driven packaging demand and memory market recovery. Technically, its shift toward HBM and Chiplet assembly pressures upstream suppliers to accelerate low-loss substrate development and forces equipment vendors to refine hybrid bonding capabilities. Regulatory risks are mounting: if U.S. export controls extend to OSAT-level advanced packaging, Tongfu may need to rebuild non-U.S. tooling lines, inflating capex by over 15% short-term. Competitively, ASE and JCET will likely deepen alliances with NVIDIA and SK Hynix to lock in AI-memory packaging dominance. Over the next 18 months, the sector will bifurcate—commodity packaging remains squeezed, while 3D-stacked and silicon-photonics-ready capacity becomes a geopolitically scarce asset, potentially accelerating China’s domestic supply chain self-sufficiency past 60% two years ahead of schedule.