Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

Hon Hai Precision Industry / Equity Bottom-Up

<ul><li>Foxconn's Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official. </li><li>Qualcomm CEO backs Arm's forecast of 50% Windows PC market share in 5 years. </li><li>UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.</li></ul>

Foxconn's Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official. Qualcomm CEO backs Arm's forecast of 50% Windows PC market share in 5 years. UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.

Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

<ul><li>SK Hynix leads in next-gen HBM innovation, setting pace with Indian startup FermionIC aiming for market domination.</li><li>AMD releases new processors for data centers and PCs promising improved performance and efficiency with Instinct, Ryzen, and EPYC.</li><li>India partners with Taiwan for semiconductor ecosystem development, while Russia plans to produce 350nm chips with self-developed EUV machines in 2024.</li></ul>

SK Hynix leads in next-gen HBM innovation, setting pace with Indian startup FermionIC aiming for market domination.AMD releases new processors for data centers and PCs promising improved performance and efficiency with Instinct, Ryzen, and EPYC.India partners with Taiwan for semiconductor ecosystem development, while Russia plans to produce 350nm chips with self-developed EUV machines in 2024.

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

<ul>
<li>Hon Hai shares have hit a new all-time high and have just risen past our target price of NT$155, surging after investors flocked to Hon Hai on AI news.</li>
<li>Hon Hai showcased two key technologies at Nvidia's GTC conference last week: Nvidia-based AI servers with liquid cooling systems and an AI autonomous driving controller using Nvidia's Orin X processor.</li>
<li>Hon Hai's sharp rally appears to have partly been caused by a short squeeze; While we like the long-term fundamentals and increased TP to NT$170, Hon Hai appears near-term overbought.</li>
</ul>


Hon Hai shares have hit a new all-time high and have just risen past our target price of NT$155, surging after investors flocked to Hon Hai on AI news.
Hon Hai showcased two key technologies at Nvidia's GTC conference last week: Nvidia-based AI servers with liquid cooling systems and an AI autonomous driving controller using Nvidia's Orin X processor.
Hon Hai's sharp rally appears to have partly been caused by a short squeeze; While we like the long-term fundamentals and increased TP to NT$170, Hon Hai appears near-term overbought.


Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here?

<ul>
<li>Hon Hai released its December revenue figures on January 5th; Revenue came in lower than any other December in recent history.</li>
<li>Hon Hai's MIH EV consortium is showcasing solutions at CES 2024 this week in Las Vegas.  In Taiwan, the Luxgen expects 9,000 customer deliveries for its 'n7' EV by June.</li>
<li>Hon Hai is trading at less than 5x forward 2025E PE; and on a trailing basis one of the lower EV/EBITDA's in history. Latest share drop is a buying opportunity.</li>
</ul>


Hon Hai released its December revenue figures on January 5th; Revenue came in lower than any other December in recent history.
Hon Hai's MIH EV consortium is showcasing solutions at CES 2024 this week in Las Vegas.  In Taiwan, the Luxgen expects 9,000 customer deliveries for its 'n7' EV by June.
Hon Hai is trading at less than 5x forward 2025E PE; and on a trailing basis one of the lower EV/EBITDA's in history. Latest share drop is a buying opportunity.


Apple Partner Hon Hai Reports Weakest December Revenue In Years, But EV Growing; Buying Opportunity

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>IDC reported 3Q24 PC shipments declining -2% YoY, Canalys an increase of +1%. Let’s call this flat. If 4Q24 is “average seasonal”, 2024 will reach ~265m, or the pre-Covid range. </li>
<li>No AI fever, no accelerated replacement cycle, for now. If it happens, it will take time, ie compelling AI apps that only run locally and need a new PC.</li>
<li>In Asia, PC vendors: Lenovo, Acer, Asus. Taiwan ODM: Compal, Quanta, Wistron. Semi with high exposure: Novatek, Realtek. </li>
</ul>


IDC reported 3Q24 PC shipments declining -2% YoY, Canalys an increase of +1%. Let’s call this flat. If 4Q24 is “average seasonal”, 2024 will reach ~265m, or the pre-Covid range. 
No AI fever, no accelerated replacement cycle, for now. If it happens, it will take time, ie compelling AI apps that only run locally and need a new PC.
In Asia, PC vendors: Lenovo, Acer, Asus. Taiwan ODM: Compal, Quanta, Wistron. Semi with high exposure: Novatek, Realtek. 


3Q24 PC Shipments Are Flat YoY. Lenovo, Acer, Asus. Compal, Quanta, Wistron.

Taiwan

Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services for computers, communications, and consumer electronic products.  The Company's business operations include desktop and notebook PC assembly, connector production, cable assembly, PCB assembly, handset manufacturing, networking equipment, and other consumer electronic devices manufacturing.

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Hon Hai Precision Industry (2317 TT)

Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

Foxconn's Hyderabad factory to produce Airpods; Arm predicts 50% of Windows PC market; UnaBiz achieves 90% accuracy with AI geolocation; Nvidia and...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

China's semiconductor industry advances as SK Hynix leads in innovation, AMD releases new processors, Indian startup FermionIC aims for market...

Tech Supply Chain Tracker

Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here?

Hon Hai shares surged to new all-time high after showcasing AI technologies at Nvidia's GTC conference. We believe a short squeeze may have been...

Vincent Fernando, CFA

Apple Partner Hon Hai Reports Weakest December Revenue In Years, But EV Growing; Buying Opportunity

Hon Hai's December revenue was the lowest in recent history, but latest developments show its EV business expansion progressing and the stock is...

Vincent Fernando, CFA

3Q24 PC Shipments Are Flat YoY. Lenovo, Acer, Asus. Compal, Quanta, Wistron.

3Q24 PC shipments are flat YoY. The great recovery or AI replacement cycle aren’t happening (for now). IDC reported 3Q24 PC shipments declining -2%...

Nicolas Baratte

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52-week Range

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Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

Foxconn's Hyderabad factory to produce Airpods; Arm predicts 50% of Windows PC market; UnaBiz achieves 90% accuracy with AI geolocation; Nvidia and...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

China's semiconductor industry advances as SK Hynix leads in innovation, AMD releases new processors, Indian startup FermionIC aims for market...

Tech Supply Chain Tracker

Hon Hai (Foxconn): After the 50% Surge, Where Can It Go From Here?

​Hon Hai shares surged to new all-time high after showcasing AI technologies at Nvidia's GTC conference. We believe a short squeeze may have been...

Vincent Fernando, CFA

Apple Partner Hon Hai Reports Weakest December Revenue In Years, But EV Growing; Buying Opportunity

​Hon Hai's December revenue was the lowest in recent history, but latest developments show its EV business expansion progressing and the stock is...

Vincent Fernando, CFA

3Q24 PC Shipments Are Flat YoY. Lenovo, Acer, Asus. Compal, Quanta, Wistron.

3Q24 PC shipments are flat YoY. The great recovery or AI replacement cycle aren’t happening (for now). IDC reported 3Q24 PC shipments declining -2%...

Nicolas Baratte

Hon Hai shares surged to new all-time high after showcasing AI technologies at Nvidia's GTC conference. We believe a short squeeze may have been...

Hon Hai's December revenue was the lowest in recent history, but latest developments show its EV business expansion progressing and the stock is...