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 Hathaway Inc Cl B (BRK/B US) disclosed that it has acquired about 60.1m shares in Taiwan Semiconductor (TSMC) - ADR (TSM US).  </li>
<li>Hon Hai is receiving local government support to recruit/return workers in order to ease its crisis there. Meanwhile, it will also quadruple its India-based iPhone manufacturing staff.</li>
<li>UMC's ADR premium is 0% and could see a bounce given the surge in TSMC.</li>
</ul>


Berkshire Hathaway Inc Cl B (BRK/B US) disclosed that it has acquired about 60.1m shares in Taiwan Semiconductor (TSMC) - ADR (TSM US).  
Hon Hai is receiving local government support to recruit/return workers in order to ease its crisis there. Meanwhile, it will also quadruple its India-based iPhone manufacturing staff.
UMC's ADR premium is 0% and could see a bounce given the surge in TSMC.


Taiwan Tech Weekly: Buffet Invests in TSMC, Hon Hai Issues Improving, China Chip Imports Slump

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>Hon Hai Precision Industry (2317 TT) reported 3Q22 EPS of NT$2.80 yesterday, below consensus estimates of NT$2.95, partly due to gross margin falling QoQ.</li>
<li>The company emphasized that 4Q22E could be impacted by Zhengzhou issues, but would be short-term in nature. It still aims to achieve a 10% gross margin by 2025.</li>
<li>EV business continues to expand and shares are trading near lower-end of their recent trading range.</li>
</ul>


Hon Hai Precision Industry (2317 TT) reported 3Q22 EPS of NT$2.80 yesterday, below consensus estimates of NT$2.95, partly due to gross margin falling QoQ.
The company emphasized that 4Q22E could be impacted by Zhengzhou issues, but would be short-term in nature. It still aims to achieve a 10% gross margin by 2025.
EV business continues to expand and shares are trading near lower-end of their recent trading range.


Hon Hai 3Q22 Results Call: Indicates COVID Issue Manageable, Maintains LT Margin Expansion Target

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>Apple Inc. supplier Foxconn Technology Group is trying all means including higher pay to lure runaway workers back to its Zhengzhou factory</li><li>Starting Nov. 1, Foxconn’s Zhengzhou factory offered an allowance of 400 yuan ($55) a day to any workers showing up for work this month, up from the regular attendance allowance of 100 yuan</li><li>It’s not clear how many workers left the factory, but online photos showed hundreds of workers waiting to board buses to their hometowns.</li></ul>

Apple Inc. supplier Foxconn Technology Group is trying all means including higher pay to lure runaway workers back to its Zhengzhou factoryStarting Nov. 1, Foxconn’s Zhengzhou factory offered an allowance of 400 yuan ($55) a day to any workers showing up for work this month, up from the regular attendance allowance of 100 yuanIt’s not clear how many workers left the factory, but online photos showed hundreds of workers waiting to board buses to their hometowns.

Foxconn Offers Cash and Rides to Lure Back Runaway Workers

Cross Asset Strategy

<ul><li>Cosmetics-makers slash Double 11 marketing budgets as consumer spending slumps</li><li>China’s GPS challenger now ships on almost every new phone sold in the country</li><li>Trending in China: Teacher dies after online class gatecrashed by harassers</li></ul>

Cosmetics-makers slash Double 11 marketing budgets as consumer spending slumpsChina’s GPS challenger now ships on almost every new phone sold in the countryTrending in China: Teacher dies after online class gatecrashed by harassers

CX Daily: Cosmetics-Makers Slash Double 11 Marketing Budgets as Consumer Spending Slumps

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hon-hai-precision-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:745:1" rel="noopener">Hon Hai Precision Industry (2317 TT)</a>  announced today that it will invest up to US$170m into <a href="https://www.smartkarma.com/entities/lordstown-motors-corp" target="_blank" data-smartkarma-citation="entities:33123:1" rel="noopener">Lordstown Motors Corp (RIDE US).</a>
</li>
<li>The deal represents favorable terms for Hon Hai in our view, given the conversion price of preferred shares involved in the deal and the after-market price for Lordstown shares.</li>
<li>Germany is expected to block a chip facility acquisition by <a href="https://www.smartkarma.com/entities/navtech-inc-china" target="_blank" data-smartkarma-citation="entities:25361:1" rel="noopener">Navtech Inc/China (300456 CH)</a>; Alibaba and Biren are slowing chip speeds due to U.S. curbs; Lithuan-Taiwan chip partnership.</li>
</ul>



Hon Hai Precision Industry (2317 TT)  announced today that it will invest up to US$170m into Lordstown Motors Corp (RIDE US).

The deal represents favorable terms for Hon Hai in our view, given the conversion price of preferred shares involved in the deal and the after-market price for Lordstown shares.
Germany is expected to block a chip facility acquisition by Navtech Inc/China (300456 CH); Alibaba and Biren are slowing chip speeds due to U.S. curbs; Lithuan-Taiwan chip partnership.


Taiwan Tech Weekly: Hon Hai U.S. Listco EV Deal, Germany Likely to Block China Co's Factory Purchase

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)

Taiwan Tech Weekly: Buffet Invests in TSMC, Hon Hai Issues Improving, China Chip Imports Slump

Berkshire Hathaway Inc Cl B (BRK/B US) disclosed that it has acquired about 60.1m shares in Taiwan Semiconductor (TSMC) - ADR (TSM US).

Vincent Fernando, CFA

Hon Hai 3Q22 Results Call: Indicates COVID Issue Manageable, Maintains LT Margin Expansion Target

The company emphasized that 4Q22E could be impacted by Zhengzhou issues, but would be short-term in nature. It still aims to achieve a 10% gross...

Vincent Fernando, CFA

Foxconn Offers Cash and Rides to Lure Back Runaway Workers

Apple Inc. supplier Foxconn Technology Group is trying all means including higher pay to lure runaway workers back to its Zhengzhou factory

Caixin Global

CX Daily: Cosmetics-Makers Slash Double 11 Marketing Budgets as Consumer Spending Slumps

Cosmetics-makers slash Double 11 marketing budgets as consumer spending slumps. China’s GPS challenger now ships on almost every new phone sold in...

Caixin Global

Taiwan Tech Weekly: Hon Hai U.S. Listco EV Deal, Germany Likely to Block China Co's Factory Purchase

Hon Hai-Lordstown deal represents favorable terms for Hon Hai in our view, given the conversion price of preferred shares involved in the deal.

Vincent Fernando, CFA

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