Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

<ul>
<li>Berkshire's TSMC U-Turn. Berkshire's TSMC stake was sold down by 86.2% just months after acquiring it. One had to wonder what the about-face on the investment was based on.</li>
<li>Applied Materials results well received by the market, however provided some caveates in terms of how fast the Memory chip industry recovery will come. (Readthrough: Nanya Tech, Micron, SK hynix)</li>
<li>TSMC believes that the automotive chip crunch is now easing, which should be good news for the auto industry, especially EV.</li>
</ul>


Berkshire's TSMC U-Turn. Berkshire's TSMC stake was sold down by 86.2% just months after acquiring it. One had to wonder what the about-face on the investment was based on.
Applied Materials results well received by the market, however provided some caveates in terms of how fast the Memory chip industry recovery will come. (Readthrough: Nanya Tech, Micron, SK hynix)
TSMC believes that the automotive chip crunch is now easing, which should be good news for the auto industry, especially EV.


Taiwan Tech Weekly: AMAT Results Imply Longer Memory Weakness, Berkshire's U-Turn on TSMC

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 memories, the most volatile part of the chip market, have declined dramatically since June</li>
<li>During downturns memory chip prices typically collapse until they hit cost</li>
<li>NAND appears to be selling at or near cost, but DRAM still has room for further declines</li>
</ul>


Semiconductor memories, the most volatile part of the chip market, have declined dramatically since June
During downturns memory chip prices typically collapse until they hit cost
NAND appears to be selling at or near cost, but DRAM still has room for further declines


Memory Makers Update: Samsung, SK Hynix, Micron, WDC, Kioxia

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Samsung C&amp;T announced the cancellation of its entire treasury shares over the next five years. It has 24.7 million shares of common shares (accounting for 13.2% of common shares outstanding).</li>
<li>We like a pair trade between Samsung C&amp;T (go long) and Samsung Electronics (go short). Samsung C&amp;T's share cancellation is likely to have a positive impact on its shares.</li>
<li>The recent sell-down of most of its shares in TSMC by Berkshire Hathaway is also likely to be viewed negatively by some investors in Samsung Electronics. </li>
</ul>


Samsung C&amp;T announced the cancellation of its entire treasury shares over the next five years. It has 24.7 million shares of common shares (accounting for 13.2% of common shares outstanding).
We like a pair trade between Samsung C&amp;T (go long) and Samsung Electronics (go short). Samsung C&amp;T's share cancellation is likely to have a positive impact on its shares.
The recent sell-down of most of its shares in TSMC by Berkshire Hathaway is also likely to be viewed negatively by some investors in Samsung Electronics. 


A Pair Trade Between Samsung C&T and Samsung Electronics Amid Big Share Cancellation at Samsung C&T

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>This week we digest key takeaways from some of the latest key industry results that came out (ASE Technologies (TW), Novatek (TW), and Tokyo Electron (JP)).</li>
<li>ASE and Tokyo Electron exhibited their insulated positions during the current inventory corrections happening, delivering decent margins and beating expectations. Novatek also beat expectations.</li>
<li>Forward expectations are generally for a worse 1Q23E ahead followed by the beginning of a recovery in 2Q23E. Is this becoming simply the consensus view, however?</li>
</ul>


This week we digest key takeaways from some of the latest key industry results that came out (ASE Technologies (TW), Novatek (TW), and Tokyo Electron (JP)).
ASE and Tokyo Electron exhibited their insulated positions during the current inventory corrections happening, delivering decent margins and beating expectations. Novatek also beat expectations.
Forward expectations are generally for a worse 1Q23E ahead followed by the beginning of a recovery in 2Q23E. Is this becoming simply the consensus view, however?


Taiwan Tech Weekly: Latest Key Results Add More Expectations for a 2H23E Turnaround

<ul>
<li>Samsung reported 4Q22 detailed results - Semiconductor earnings evaporated and its memory subsegment likely lost money.</li>
<li>Samsung re-iterated that it would NOT cut capex despite the market downturn - Samsung appears ready to endure losses which is negative for Nanya Tech, SK Hynix, and Micron.</li>
<li>Japan and the Netherlands have joined the U.S. with chip technology restrictions for China - Hon Hai is a net winner.</li>
</ul>


Samsung reported 4Q22 detailed results - Semiconductor earnings evaporated and its memory subsegment likely lost money.
Samsung re-iterated that it would NOT cut capex despite the market downturn - Samsung appears ready to endure losses which is negative for Nanya Tech, SK Hynix, and Micron.
Japan and the Netherlands have joined the U.S. with chip technology restrictions for China - Hon Hai is a net winner.


Taiwan Tech Weekly: Samsung Results; Will Bleed Competitors; Japan & Holland Join China Chip Ban

South Korea

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SK Hynix (000660 KS)

Taiwan Tech Weekly: AMAT Results Imply Longer Memory Weakness, Berkshire's U-Turn on TSMC

Applied Materials results well received by the market, however provided some caveates in terms of how fast the Memory chip industry recovery will...

Vincent Fernando, CFA

Memory Makers Update: Samsung, SK Hynix, Micron, WDC, Kioxia

The semiconductor memory market has collapsed, but the collapse is nearly over for Samsung, SK hynix, Micron, WDC, and Kioxia.

Jim Handy

Taiwan Tech Weekly: Latest Key Results Add More Expectations for a 2H23E Turnaround

Forward expectations are generally for a worse 1Q23E ahead followed by the beginning of a recovery in 2Q23E. Is this becoming simply the consensus...

Vincent Fernando, CFA

Taiwan Tech Weekly: Samsung Results; Will Bleed Competitors; Japan & Holland Join China Chip Ban

Samsung re-iterated that it would NOT cut capex despite the market downturn - Samsung appears ready to endure losses which is negative for Nanya...

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Taiwan Tech Weekly: AMAT Results Imply Longer Memory Weakness, Berkshire's U-Turn on TSMC

Applied Materials results well received by the market, however provided some caveates in terms of how fast the Memory chip industry recovery will...

Vincent Fernando, CFA

Memory Makers Update: Samsung, SK Hynix, Micron, WDC, Kioxia

The semiconductor memory market has collapsed, but the collapse is nearly over for Samsung, SK hynix, Micron, WDC, and Kioxia.

Jim Handy

A Pair Trade Between Samsung C&T and Samsung Electronics Amid Big Share Cancellation at Samsung C&T

We like a pair trade between Samsung C&T (go long) and Samsung Electronics (go short). Samsung C&T's share cancellation is likely to have a...

Douglas Kim

Taiwan Tech Weekly: Latest Key Results Add More Expectations for a 2H23E Turnaround

Forward expectations are generally for a worse 1Q23E ahead followed by the beginning of a recovery in 2Q23E. Is this becoming simply the consensus...

Vincent Fernando, CFA

Taiwan Tech Weekly: Samsung Results; Will Bleed Competitors; Japan & Holland Join China Chip Ban

Samsung re-iterated that it would NOT cut capex despite the market downturn - Samsung appears ready to endure losses which is negative for Nanya...

Vincent Fernando, CFA