In an August 17 research report, JPMorgan Chase noted that the Q2 2026 earnings reports from major global chip manufacturers revealed that industry demand strength comprehensively exceeded expectations from three months prior, and pricing power is accelerating its spread from memory chips to semiconductor equipment (SPE) and materials. The report emphasized that price increases and profit expansion are no longer exclusive to memory chip manufacturers, as SPE and tech material suppliers are steadily improving gross margins through price hikes. Driven by strong demand, TSMC raised its 2026 capital expenditure plan by approximately 15%, from $52-56 billion to $60-64 billion; Intel increased its capital expenditure for the same period to $20 billion (YoY +11%), with equipment capital expenditure seeing a significant 40% increase. Furthermore, the semiconductor equipment (WFE) market outlook was substantially revised upwards, with Tokyo Electron raising its 2027 WFE market forecast to no less than $190 billion, and equipment manufacturers generally expanding gross margins. Memory giants such as Samsung and SK Hynix are securing profits for several years through 5-year long-term agreements (LTAs) and substantial prepayments, with SanDisk even disclosing a floor gross margin of approximately 80%.