Japan Manufacturing Growth Slows in May as Services Sector Stagnates Amid Rising Middle East Supply Costs 
Australian Consumer Sentiment Improves Slightly as Fuel Prices Ease 
UK Hiring Slows as Iran War Fuels Economic Uncertainty in 2026 
China to Buy 200 Boeing Jets, Push for Extended U.S. Trade Deal 
Moody’s Downgrades Mexico Credit Rating Amid Rising Debt and Fiscal Pressure 
Gold Prices Steady as Iran War Fuels Inflation and Rate Concerns 
US Stock Futures Slip as Nvidia Earnings Fail to Fully Impress Investors 
New Zealand Budget 2026: Government Plans Major Public Service Job Cuts Ahead of Election 
ECB Signals Possible Rate Hike as Middle East Tensions Push Euro Zone Inflation Higher 
Fed’s Anna Paulson Signals Rates Could Stay Higher Longer Amid Inflation Risks 
China Delays Pentagon Official’s Beijing Visit Amid Taiwan Arms Deal Tensions 
Rubio to Push NATO Defense Spending, Strengthen India Ties During Key Diplomatic Tour 
Japan Posts Strong April Trade Surplus as Exports Surge Amid Robust U.S. and China Demand 
Dollar Slips as Risk Appetite Grows Amid Nvidia Rally and Iran Peace Hopes 
Asian Stocks Mixed as Tech Shares Slide Ahead of Nvidia Earnings 
Mizuho’s Asia hardware and semiconductor analysts have raised their 2025 forecast for Nvidia’s AI GPU shipments, projecting an 8-10% increase over their July 2024 estimates. The revision is driven by supply chain improvements, particularly advancements in CoWoS (Chip on Wafer on Substrate) technology.
Shipment Projections and CoWoS Technology
The report suggests that Nvidia (NASDAQ: NVDA) will ship between 6.5 and 7 million AI GPUs in 2025, including 3 million CoWoS-S units. These shipments will mainly consist of Nvidia's Hopper and Blackwell models, with CoWoS-S reaching yields of over 99%. Furthermore, Nvidia's CoWoS-L process is expected to produce between 3.8 and 4 million units, focusing on high-demand GB200 server racks, with around 80-90% of the production dedicated to this line.
TSMC's Production Expansion and Supply Chain Improvements
Mizuho’s revised forecast coincides with the expansion of Nvidia’s production partner, Taiwan Semiconductor Manufacturing (NYSE: TSM), which is doubling its annual wafer capacity. The report notes that CoWoS supply constraints are likely to continue into 2025 but are expected to ease as TSMC's annual wafer capacity surpasses 650,000, a 100% increase year-over-year. Additionally, to mitigate supply-demand pressures, some back-end (on-substrate) processes are anticipated to be outsourced to Advanced Semiconductor Engineering (ASE).
Blackwell GPU and Supply Chain Outlook
Mizuho analysts believe that concerns about potential delays in the rollout of Nvidia’s Blackwell GPUs are “exaggerated.” Both TSMC and SK Hynix Inc. (KS:000660) are expected to achieve sales growth following the planned launch of Blackwell GPUs in the fourth quarter of 2024.
Overall, Mizuho analysts do not foresee any significant delays in semiconductor production, including AI GPUs and ASICs, impacting AI server manufacturing in 2025. They also note that Taiwanese back-end equipment vendors, such as Allring Tech, are likely to benefit from TSMC's efforts to localize its supply chain.
