Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

United Microelectronics Corp / Equity Bottom-Up

<ul>
<li>The 1Q24F guidance is expected to decrease by 2-3% QoQ. However, we believe there is a good chance of achieving a flat QoQ performance.</li>
<li>Production is expected to be ready by 2027F, with the process likely to be prepared by 2025F and enter pilot run in 2026F.  </li>
<li>The semiconductor market is expected to grow at a high single-digit rate, while the foundry market is expected to grow close to 10% YoY in 2024F.  </li>
</ul>


The 1Q24F guidance is expected to decrease by 2-3% QoQ. However, we believe there is a good chance of achieving a flat QoQ performance.
Production is expected to be ready by 2027F, with the process likely to be prepared by 2025F and enter pilot run in 2026F.  
The semiconductor market is expected to grow at a high single-digit rate, while the foundry market is expected to grow close to 10% YoY in 2024F.  


UMC (2303.TT; UMC.US): 1Q24F Guidance Is Slightly Lower than 4Q23; Intel Project Grasps Attention

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 26th which has an aggregated holding worth USD3,475.7bn.</li>
<li>We estimate that foreign flows to be inflows of USD16,322mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign instutions.</li>
<li>We highlight foreign changes in TSMC, Alchip Tech, Pharmaessentia, Asmedia Tech, Umc, Global Unichip, Wistron, Gigabyte Tech, Largan Precision, Delta Elec.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 26th which has an aggregated holding worth USD3,475.7bn.
We estimate that foreign flows to be inflows of USD16,322mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign instutions.
We highlight foreign changes in TSMC, Alchip Tech, Pharmaessentia, Asmedia Tech, Umc, Global Unichip, Wistron, Gigabyte Tech, Largan Precision, Delta Elec.


TWSE Foreign Holding Weekly (Jan 26th): TSMC, Alchip Tech, Pharmaessentia, Asmedia Tech, Umc

ASE Technology Holding   / Equity Bottom-Up

<ul>
<li>The <a href="https://www.smartkarma.com/entities/ase-technology-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:27270:1" rel="noopener">ASE Technology Holding (3711 TT)</a> 1Q24F outlook may be dim due to normal seasonality, resulting in a decline of mid-to-high single digits in revenue.</li>
<li>
<a href="https://www.smartkarma.com/entities/mediatek-inc" target="_blank" data-smartkarma-citation="entities:772:1" rel="noopener">Mediatek Inc (2454 TT)</a> and <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a> are expected to experience a strong rebound.</li>
<li>The 2024F outlook for ASEH indicates a low double-digit YoY growth.  </li>
</ul>


The ASE Technology Holding (3711 TT) 1Q24F outlook may be dim due to normal seasonality, resulting in a decline of mid-to-high single digits in revenue.

Mediatek Inc (2454 TT) and NVIDIA Corp (NVDA US) are expected to experience a strong rebound.
The 2024F outlook for ASEH indicates a low double-digit YoY growth.  


ASEH (3711.TT; ASX.US): 1Q24F Revenue Outlook Could Be Down Slightly QoQ; 2024F Should Grow ~10% YoY

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 19th which has an aggregated holding worth USD714.3bn.</li>
<li>We estimate that foreign flows to be outflows of USD1,083mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign instutions.</li>
<li>We highlight foreign changes in TSMC, Quanta Computer, Delta Elec, Global Unichip, Hon Hai, Umc, Alchip Tech.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Jan 19th which has an aggregated holding worth USD714.3bn.
We estimate that foreign flows to be outflows of USD1,083mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign instutions.
We highlight foreign changes in TSMC, Quanta Computer, Delta Elec, Global Unichip, Hon Hai, Umc, Alchip Tech.


TWSE Foreign Holding Weekly (Jan 19th): TSMC, Quanta Computer, Delta Elec, Global Unichip, Hon Hai

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul>
<li>The revenue/ GM/ OPM/ EPS is USD$19.62bn/ 53%/ 41.6%/ NT$9.21 in 4Q23. The revenue/ GMO/ OPM is US$18-18.8bn/ 52-54%/ 40-42% in 1Q24F guidance.</li>
<li>TSMC's sales for 2024F are expected to grow in the low to mid-twenties YoY.</li>
<li>2024F is expected to be a relatively healthy year for the high-performance computing (HPC) and artificial intelligence (AI) sectors, with robust demand.</li>
</ul>


The revenue/ GM/ OPM/ EPS is USD$19.62bn/ 53%/ 41.6%/ NT$9.21 in 4Q23. The revenue/ GMO/ OPM is US$18-18.8bn/ 52-54%/ 40-42% in 1Q24F guidance.
TSMC's sales for 2024F are expected to grow in the low to mid-twenties YoY.
2024F is expected to be a relatively healthy year for the high-performance computing (HPC) and artificial intelligence (AI) sectors, with robust demand.


TSMC (2330.TT; TSM.US): Expect Utilization Rate to Rise with Business Recovery.

Taiwan

ASE Technology Holding Co., Ltd. offers assembly and testing services. The Company provides outsourced assembly, semiconductor testing, semiconductor packaging, and other related services. ASE Technology Holding operates in Taiwan.

United Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs) and related electronic products.  The Company's main products are consumer electronic ICs, memory ICs, personal computer peripheral ICs, and communication ICs.

eMemory Technology, Inc. develops and provides logic non-volatile memory (LogicNVM) technology. The company licenses its intellectual property to semiconductor foundries, integrated devices manufacturers (IDMs), and fabless design houses around the world.

Nanya Technology Corp. manufactures and markets dynamic random access memories (DRAMs).  The Company sells its products in Taiwan and exports worldwide.

Realtek Semiconductor Corp. designs, tests, and distributes integrated circuits which are used in consumer electronics, computer systems and peripherals, and communication network hardware.  The Company also provides technical counseling and systems software services.

Global Unichip Corporation designs and produces a wide variety of silicon chips.

Novatek Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs).  The Company's products are used in telecommunication, computer peripherals, and LCD (liquid crystal display) drivers.

ASPEED Technology Inc. is a fabless IC-design house that specializes in server management, PC/AV extensions solution, desktop virtualization and security enhancement. The Company's products range from silicon chips, IPs to software products that enable sophisticated SOC- centric multimedia, praphics and new work applications.

Vanguard International Semiconductor Corporation offers integrated circuit foundry services.  The Company manufactures 0.18um logic, mixed-signal, analog, high voltage, low power, CMOS RF, flash, embedded memory, and bipolar CMOS DMOS semiconductors.

Tokyo Electron Limited manufactures and sells industrial electronics products, such as semiconductor manufacturing machines, computer system, and electronic components.  The Company products are sold in US, Taiwan, and others as well as in Japan.

KLA-Tencor Corporation manufactures yield management and process monitoring systems for the semiconductor industry.  The Company's systems are used to analyze product and process quality at critical steps in the manufacture of circuits and provide feedback so that fabrication problems can be identified. KLA-Tencor operates sales, service, and application centers worldwide.

Monolithic Power Systems Inc specializes in high-performance, integrated power solutions. The Company provides small, highly energy efficient, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications.

ON Semiconductor Corporation supplies analog, standard logic, and discrete semiconductors for data and power management. The Company's products include integrated circuits, and analog ICs. ON also offers discrete semiconductors in a variety of surface mount and standard packages.

Lasertec Corporation develops, designs, manufactures and markets photomask inspection systems to make semiconductor devices, confocal scanning laser microscopes and liquid crystal display (LCD) inspection systems.

Skyworks Solutions, Inc., a wireless semiconductor company, designs and manufactures radio frequency and complete semiconductor system solutions for mobile communications applications.  The Company provides front-end modules, radio frequency subsystems, and system solutions to wireless handset and infrastructure customers worldwide.

Microchip Technology Incorporated designs, manufactures, and markets microcontrollers, related mixed-signal and memory products, and application development systems for high-volume embedded control applications. The Company also designs, develops, and markets linear/mixed-signal, power management, and thermal management products.

NXP Semiconductors NV operates as a global semiconductor company. The Company designs semiconductors and software for mobile communications, consumer electronics, security applications, in-car entertainment, and networking.  NXP offers its products to the automotive, identification, wireless infrastructure, lighting, mobile, and computing applications.

Entegris Inc. provides materials management products and services to the microelectronics industry on a worldwide basis.  The Company provides products such as wafer shippers, wafer transport and process carriers, pods, and work-in-process boxes.  Entegris also provides chemical delivery products such as valves, fittings, tubing, pipe, and containers.

LONGi Green Energy Technology Co., Ltd. develops, manufactures and sells silicon rods and silicon wafers. The Company's main products include 6 inch, 6.5 inch and 8 inch monocrystalline silicon rods and wafers.

LONGi Green Energy Technology (601012 CH)

MediaTek Inc. is a fabless semiconductor company for wireless communications and digital multimedia solutions. The company provides SOC system solutions for wireless communications, high-definition TV, optical storage, DVD and Blu-ray products.

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Mediatek Inc (2454 TT)

UMC (2303.TT; UMC.US): 1Q24F Guidance Is Slightly Lower than 4Q23; Intel Project Grasps Attention

The 1Q24F guidance may decrease slightly, but there is potential for a steady performance. Production in Intel's Fab is set for 2027F. Currently,...

Patrick Liao

TWSE Foreign Holding Weekly (Jan 26th): TSMC, Alchip Tech, Pharmaessentia, Asmedia Tech, Umc

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Alchip Tech, Pharmaessentia, Asmedia Tech,...

Ke Yan, CFA, FRM

ASEH (3711.TT; ASX.US): 1Q24F Revenue Outlook Could Be Down Slightly QoQ; 2024F Should Grow ~10% YoY

ASEH 1Q24F outlook is expected for a mid-to high single digits QoQ decline. Mediatek and NVDA are anticipated to a strong rebound in 1Q24F. ASEH's...

Patrick Liao

TWSE Foreign Holding Weekly (Jan 19th): TSMC, Quanta Computer, Delta Elec, Global Unichip, Hon Hai

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Quanta Computer, Delta Elec, Global...

Ke Yan, CFA, FRM

TSMC (2330.TT; TSM.US): Expect Utilization Rate to Rise with Business Recovery.

TSMC expects strong growth in sales for 2024, driven by high demand in HPC and AI sectors. TSMC's sales for 2024F are expected to grow in the low...

Patrick Liao

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52-week Range

Market Cap (USDm)

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UMC (2303.TT; UMC.US): 1Q24F Guidance Is Slightly Lower than 4Q23; Intel Project Grasps Attention

The 1Q24F guidance may decrease slightly, but there is potential for a steady performance. Production in Intel's Fab is set for 2027F. Currently,...

Patrick Liao

TWSE Foreign Holding Weekly (Jan 26th): TSMC, Alchip Tech, Pharmaessentia, Asmedia Tech, Umc

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Alchip Tech, Pharmaessentia, Asmedia Tech,...

Ke Yan, CFA, FRM

ASEH (3711.TT; ASX.US): 1Q24F Revenue Outlook Could Be Down Slightly QoQ; 2024F Should Grow ~10% YoY

​ASEH 1Q24F outlook is expected for a mid-to high single digits QoQ decline. Mediatek and NVDA are anticipated to a strong rebound in 1Q24F. ASEH's...

Patrick Liao

TWSE Foreign Holding Weekly (Jan 19th): TSMC, Quanta Computer, Delta Elec, Global Unichip, Hon Hai

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in TSMC, Quanta Computer, Delta Elec, Global...

Ke Yan, CFA, FRM

TSMC (2330.TT; TSM.US): Expect Utilization Rate to Rise with Business Recovery.

​TSMC expects strong growth in sales for 2024, driven by high demand in HPC and AI sectors. TSMC's sales for 2024F are expected to grow in the low...

Patrick Liao

ASEH 1Q24F outlook is expected for a mid-to high single digits QoQ decline. Mediatek and NVDA are anticipated to a strong rebound in 1Q24F. ASEH's...

TSMC expects strong growth in sales for 2024, driven by high demand in HPC and AI sectors. TSMC's sales for 2024F are expected to grow in the low...