Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

<ul>
<li>SK Hynix and Samsung both released their latest earnings last week. The companies are the leading players for Nanya Tech's memory chip industry.</li>
<li>SK Hynix's latest gross margin performance confirms Nanya Tech performing in-line with the industry leaders.</li>
<li>Guidance from both SK Hynix and Samsung indicates a likely improvement in supply/demand dynamics in 2023E for the memory chip space.</li>
</ul>


SK Hynix and Samsung both released their latest earnings last week. The companies are the leading players for Nanya Tech's memory chip industry.
SK Hynix's latest gross margin performance confirms Nanya Tech performing in-line with the industry leaders.
Guidance from both SK Hynix and Samsung indicates a likely improvement in supply/demand dynamics in 2023E for the memory chip space.


Nanya Tech: SK Hynix & Samsung Results Supportive for Memory Chip Industry 2023E Outlook

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

<ul>
<li>Semiconductor collapses like today's are led by memory chips, which are a commodity</li>
<li>The leading memory manufacturers: Samsung, SK hynix, Micron, and WDC, have announced their 3Q22 earnings, with only Kioxia remaining.  All have suffered substantial revenue declines.</li>
<li>Memory prices are dropping to cost, and should remain at cost until demand catches back up with supply in late 2023</li>
</ul>


Semiconductor collapses like today's are led by memory chips, which are a commodity
The leading memory manufacturers: Samsung, SK hynix, Micron, and WDC, have announced their 3Q22 earnings, with only Kioxia remaining.  All have suffered substantial revenue declines.
Memory prices are dropping to cost, and should remain at cost until demand catches back up with supply in late 2023


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Micron delivered a mixed set of results for the previous quarter, missing out on the revenue expectations of Wall Street but managing an earnings beat.</li><li>As a result, demand is being reduced for the other parts of the supply chain, which already have more than enough inventory, because the servers cannot be built.</li><li>Therefore, although the overall demand for clouds is generally healthy, this is one factor that is having an impact on it.</li></ul>

Micron delivered a mixed set of results for the previous quarter, missing out on the revenue expectations of Wall Street but managing an earnings beat.As a result, demand is being reduced for the other parts of the supply chain, which already have more than enough inventory, because the servers cannot be built.Therefore, although the overall demand for clouds is generally healthy, this is one factor that is having an impact on it.

Micron Technology: The New York Mega Fab & Other Drivers

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>Major milestones for Hon Hai's EV platform could be unveiled at today's Hon Hai Tech Day.</li>
<li>Apple's dropping of a key China supplier shows how international players may want to just avoid even non-restricted products from China.</li>
<li>Senior semiconductor executives across the industry are halting work for China-based firms, including some leading Chinese execs.</li>
</ul>


Major milestones for Hon Hai's EV platform could be unveiled at today's Hon Hai Tech Day.
Apple's dropping of a key China supplier shows how international players may want to just avoid even non-restricted products from China.
Senior semiconductor executives across the industry are halting work for China-based firms, including some leading Chinese execs.


Taiwan Tech Weekly: Hon Hai Tech Day Today, Apple Drops China Supplier; Shows Severity of New Rules

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>TSMC says limited impact from U.S. China restrictions -- We crosscheck the comments.</li>
<li>TSMC guidance was strong and gives hope for 1H23 industry improvement. Looks cheap on a cycle-adjusted PE.</li>
<li>Intel has outperformed TSMC shares despite the recent TSMC rebound.</li>
</ul>


TSMC says limited impact from U.S. China restrictions -- We crosscheck the comments.
TSMC guidance was strong and gives hope for 1H23 industry improvement. Looks cheap on a cycle-adjusted PE.
Intel has outperformed TSMC shares despite the recent TSMC rebound.


Intel Vs. TSMC/​​​UMC Long/​​​Short Monitor: Mgmt Call Takeaways, Calculating a Normalized Valuation

United States

Micron Technology, Inc., through its subsidiaries, manufactures and markets dynamic random access memory chips (DRAMs), very fast static random access memory chips (SRAMs), Flash Memory, other semiconductor components, and memory modules.

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Micron Technology (MU US)

Nanya Tech: SK Hynix & Samsung Results Supportive for Memory Chip Industry 2023E Outlook

Guidance from both SK Hynix and Samsung indicates a likely improvement in supply/demand dynamics in 2023E for the memory chip space.

Vincent Fernando, CFA

How Bad Is Today's Chip Collapse?

Do you understand the current chip collapse? It is following a path that it has followed in the past, and those who read this post can invest more...

Jim Handy

Micron Technology: The New York Mega Fab & Other Drivers

Micron delivered a mixed set of results for the previous quarter, missing out on the revenue expectations of Wall Street but managing an earnings...

Baptista Research

Taiwan Tech Weekly: Hon Hai Tech Day Today, Apple Drops China Supplier; Shows Severity of New Rules

Major Hon Hai EV developments could be unveiled today. Also, Apple's dropping of a key China supplier shows how international players may want to...

Vincent Fernando, CFA

Intel Vs. TSMC/UMC Long/Short Monitor: Mgmt Call Takeaways, Calculating a Normalized Valuation

TSMC guidance was strong and gives hope for 1H23 industry improvement. We perform an analysis based on cycle-adjusting the company's margins and PE.

Vincent Fernando, CFA

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Nanya Tech: SK Hynix & Samsung Results Supportive for Memory Chip Industry 2023E Outlook

Guidance from both SK Hynix and Samsung indicates a likely improvement in supply/demand dynamics in 2023E for the memory chip space.

Vincent Fernando, CFA

How Bad Is Today's Chip Collapse?

Do you understand the current chip collapse? It is following a path that it has followed in the past, and those who read this post can invest more...

Jim Handy

Micron Technology: The New York Mega Fab & Other Drivers

Micron delivered a mixed set of results for the previous quarter, missing out on the revenue expectations of Wall Street but managing an earnings...

Baptista Research

Taiwan Tech Weekly: Hon Hai Tech Day Today, Apple Drops China Supplier; Shows Severity of New Rules

Major Hon Hai EV developments could be unveiled today. Also, Apple's dropping of a key China supplier shows how international players may want to...

Vincent Fernando, CFA

Intel Vs. TSMC/​​​UMC Long/​​​Short Monitor: Mgmt Call Takeaways, Calculating a Normalized Valuation

TSMC guidance was strong and gives hope for 1H23 industry improvement. We perform an analysis based on cycle-adjusting the company's margins and PE.

Vincent Fernando, CFA

Intel Vs. TSMC/UMC Long/Short Monitor: Mgmt Call Takeaways, Calculating a Normalized Valuation