What did Hon Hai say?

Hon Hai positively responded to the GB200 yield issue at today's earnings meeting: "Currently, the yield has supported mass production, and the daily yield is still improving." "The demand for GB200 is strong, and we do not believe that the capex for CSP has peaked."

This is the official stance. Recently, the actual situation has indeed improved, with an increase in the direct pass rate. The plan in the system is to have 100 cabinets per week, with several hundred cabinets expected in March and several hundred more in April, totaling 1,000 to 2,000 cabinets in a quarter.

The main contradiction with NV's current valuation is no longer about cabinet yield; macro factors may account for a large portion, while the remaining relates to the demand logic associated with DeepSeek/capex, the proportion of reasoning, and the margin logic related to product iteration speed. Let American investors debate these slowly.

Those speculating on the supply chain seem to have automatically bypassed the GB200 issue, with both the A-share and Taiwanese markets tacitly exploring new things... For example, the recently circulated PCB for 288, separate power racks, not to mention the CPO that has been speculated on for half a year. It's just that this time it was anticipated much earlier... I wonder how much surprise there will be after GTC ends.

Regarding H20, there are also some whispers within NV. All we can say is, "We will do everything possible to meet the needs of major clients." With such a long supply chain and such detailed division of labor, there will always be a way...

Everyone understands the other channels, which are quite impressive. Therefore, I have always felt that the significance of whether H20 is banned or not is minimal; it just raises some channel costs. Previously, there were concerns about how BAT would spend the 400 billion capex this year, but it can still be spent. The real issue is how to utilize it.

This is not an integrated machine for trusted computing; at worst, it can be bought back and stored. This is something that you must invest in as mandated from above, but once invested, it must be recorded, depreciated, and needs to generate profit. Therefore, we see that each of BAT is fully focusing on applications! Yuanbao has integrated documents, Quark has become an all-purpose assistant, and Alibaba not only integrated with Apple but also supports Manus. To fill and satisfy the annual 400 billion computing power infrastructure, the speed of application development and launch will only accelerate. The penetration rate of AI applications in China is expected to surpass that of North America. There's no way around it; those above require investment from below, and those below require us to use it. That's about the logic. But this is how China's infrastructure is built, ultimately establishing the lowest production factor costs in the world, leveraging greater social value.

Speaking of which, memory prices have indeed seen a continuous month-on-month increase for DDR5 recently, and enterprise-level Flash has stabilized and rebounded. Of course, this is influenced by supply-side production cuts and tariffs pulling goods in advance, but the demand for enterprise-level and server products in China is visibly increasing.

China's AI not only needs to take over the American AI narrative but also to rescue the traditional semiconductor narrative.

Source: Information Equality _shareinfo_first=da4ac8496a7421393c575c137118acfd#rd), Original title: "What Hon Hai Said"