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<Research>Citi: 'Tau Scaling Law' Signals Shift Toward Chip/Circuit/System Design Innovation; Advanced Packaging Players Such as ASMPT Expected to Benefit
Huawei unveiled "Tau Scaling Law" at the IEEE ISCAS conference held on May 25, Citi said in its report. This represents a new chip design philosophy that emphasizes time ...
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<Research>Citi: 'Tau Scaling Law' Signals Shift Toward Chip/Circuit/System Design Innovation; Advanced Packaging Players Such as ASMPT Expected to Benefit
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Huawei unveiled "Tau Scaling Law" at the IEEE ISCAS conference held on May 25, Citi said in its report. This represents a new chip design philosophy that emphasizes time (reducing latency) rather than geometric scaling (shrinking transistors) for chip miniaturization.

Citi believed that although geometric scaling constraints remain, this is a credible design response to China’s restriction on advanced nodes and marks a shift toward innovation in chip/ circuit/ system design. Citi expected suppliers of advanced packaging equipment and services to be key beneficiaries.

Related News Citi Adds MONTAGE TECH (06809.HK), ASMPT (00522.HK) to H Shrs Top Picks; Removes CONANT OPTICAL (02276.HK), LENS (06613.HK)
The broker believed "Tau Scaling Law" signals a shift toward chip/ circuit/ system design innovation, and if proven effective, it could see broader adoption. Expected key beneficiaries include (1) advanced packaging equipment providers, particularly hybrid bonding machine suppliers; (2) OSAT players, given rising packaging complexity; (3) foundries, to support advanced chip designs; and (4) EDA tool providers, to enable 3D design.

Among companies covered by Citi, the broker held a more positive view on ASMPT (00522.HK)  -0.900 (-0.485%)    Short selling $23.16M; Ratio 3.528%   based on its continued expansion in advanced packaging solutions.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-02 16:25.)

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