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

Equity Bottom-Up

<ul>
<li>Samsung's earnings was recently reported, with memory revenues up nearly 50% in the fourth quarter</li>
<li>This gain has been driven by very strong growth in AI and a normalization of inventory levels</li>
<li>The memory business is approaching positive margins once again, and SK hynix is already profitable</li>
</ul>


Samsung's earnings was recently reported, with memory revenues up nearly 50% in the fourth quarter
This gain has been driven by very strong growth in AI and a normalization of inventory levels
The memory business is approaching positive margins once again, and SK hynix is already profitable


Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<ul>
<li>SK Hynix reported Q423 revenues of 11.31 trillion won, up 25% QoQ and up 47% YoY</li>
<li>Operating profit of 346 billion won, marking the first quarter of profit following four straight quarters of losses.</li>
<li>SK Hynix is investing heavily in custom memory solutions driven by AI-related demand. It's a far better and more profitable business model than the mainstream commodity one.</li>
</ul>


SK Hynix reported Q423 revenues of 11.31 trillion won, up 25% QoQ and up 47% YoY
Operating profit of 346 billion won, marking the first quarter of profit following four straight quarters of losses.
SK Hynix is investing heavily in custom memory solutions driven by AI-related demand. It's a far better and more profitable business model than the mainstream commodity one.


SK Hynix & The Dawn Of Custom Memory Solutions

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>SK Hynix results surpised consensus with a swing to positive operating profit; The company expects industry demand growth to exceed supply growth by a wide margin in 2024E.</li>
<li>Management suggests optimism not just for 2024E, but also for 2025E. 2025E is when a much larger positive demand impact from AI is expected as AI products will expand substantially.</li>
<li>SK Hynix comments regarding AI phones imply that consumers will most likely need to upgrade their phones, including iPhones, to take full advantage of AI capabilities</li>
</ul>


SK Hynix results surpised consensus with a swing to positive operating profit; The company expects industry demand growth to exceed supply growth by a wide margin in 2024E.
Management suggests optimism not just for 2024E, but also for 2025E. 2025E is when a much larger positive demand impact from AI is expected as AI products will expand substantially.
SK Hynix comments regarding AI phones imply that consumers will most likely need to upgrade their phones, including iPhones, to take full advantage of AI capabilities


What SK Hynix's Latest Results Indicate for PC & Mobile Makers into 2025E, Including Apple

Thematic (Sector/Industry)

<ul>
<li>SK hynix' earnings call has been scheduled for 9:00 AM Korea, January 25, and Samsung's for 10:00 AM Korea, January 31.  What can investors expect to hear?</li>
<li>Three indicators have provided a preview of the two calls' directions: WSTS, Spot Pricing, and Micron's earnings call one month earlier.</li>
<li>The news for the market is positive, so expect to hear that these companies are making progress towards regaining profitability in semiconductors.</li>
</ul>


SK hynix' earnings call has been scheduled for 9:00 AM Korea, January 25, and Samsung's for 10:00 AM Korea, January 31.  What can investors expect to hear?
Three indicators have provided a preview of the two calls' directions: WSTS, Spot Pricing, and Micron's earnings call one month earlier.
The news for the market is positive, so expect to hear that these companies are making progress towards regaining profitability in semiconductors.


What to Expect In SK Hynix and Samsung Earnings Calls

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

<ul>
<li>Taiwan PC names have been the top losers over the recent period, after having previously been the top winners. Our Long Dell vs. Short Acer trade is doing well.</li>
<li>Nanya Tech was a top loser, falling along with its international Memory peers. Nevertheless, we note it underperformed Micron and SK Hynix. We continue to prefer SK Hynix for Memory.</li>
<li>CES is happening now and will be wrapping up Friday. We like our Dell vs. Taiwan PC names through the CES event. TSMC will be reporting results January 18th.</li>
</ul>


Taiwan PC names have been the top losers over the recent period, after having previously been the top winners. Our Long Dell vs. Short Acer trade is doing well.
Nanya Tech was a top loser, falling along with its international Memory peers. Nevertheless, we note it underperformed Micron and SK Hynix. We continue to prefer SK Hynix for Memory.
CES is happening now and will be wrapping up Friday. We like our Dell vs. Taiwan PC names through the CES event. TSMC will be reporting results January 18th.


Taiwan Tech Weekly: Dell Outperforms Taiwan PC Names; TSMC Results Coming After Taiwan Election

United States

Applied Materials, Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry.  The Company's customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules and other electronic devices manufacturers.

QUALCOMM, Inc . manufactures digital wireless communications equipment.  The Company licenses its code division multiple access (CDMA) and orthogonal frequency division multiplexing access intellectual property to other companies, and produces CDMA-based integrated circuits; and produces equipment and software used to track workers and assets; and software for wireless content enablement.

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.

Lam Research Corporation manufactures, markets, and services semiconductor processing equipment used in the making of integrated circuits.  The Company's products are used to deposit special films on a silicon wafer and etch away portions of various films to create a circuit design.  Lam sells its products around the world.

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.

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.

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.

Analog Devices, Inc. designs, manufactures, and markets integrated circuits used in analog and digital signal processing.  The Company's products are used in communications, computer, industrial, instrumentation, military/aerospace, automotive, and high-performance consumer electronics applications.  Analog Devices sells its products worldwide.

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.

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.

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.

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.

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.

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.

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)

Semiconductor Manufacturing International Corporation operates a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

Semiconductor Manufacturing International Corp (SMIC) (981 HK)

Semiconductor Manufacturing International Corp (SMIC)

DISCO CORPORATION manufactures abrasive and precision industrial machinery for cutting and grinding purposes.  The Company's products are applied in the semiconductor, electronics, and construction industries to produce consumer goods such as personal computers, digital cameras, video game systems, and Digital Video Disc (DVD) players.

Renesas Electronics Corporation researches, develops, designs and manufactures electronic components such as semiconductors and integrated devices.

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)

Samsung Memory Revenues Up Impressively

Samsung's memory business sees significant growth in Q4, driven by AI and inventory stabilization, nearing positive margins while SK hynix turns...

Jim Handy

SK Hynix & The Dawn Of Custom Memory Solutions

SK Hynix reported Q423 revenues of 11.31 trillion won, +25% QoQ, +47% YoY. Op profit 346 billion won, first in five quarters. A pivot to custom...

William Keating

What SK Hynix's Latest Results Indicate for PC & Mobile Makers into 2025E, Including Apple

SK Hynix expects strong industry demand growth in 2024 and beyond, particularly due to AI expansion. AI mobile phones will be a future driver and...

Vincent Fernando, CFA

What to Expect In SK Hynix and Samsung Earnings Calls

How will the SK hynix earnings call on Jan 25 and the Samsung earnings call on Jan 31 play out? Certain indicators, spelled out in this insight,...

Jim Handy

Taiwan Tech Weekly: Dell Outperforms Taiwan PC Names; TSMC Results Coming After Taiwan Election

Taiwan PC names have gone from being top winners to top losers, while Nanya Tech underperformed compared to Micron and SK Hynix. Could Microsoft...

Vincent Fernando, CFA

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Samsung Memory Revenues Up Impressively

​Samsung's memory business sees significant growth in Q4, driven by AI and inventory stabilization, nearing positive margins while SK hynix turns...

Jim Handy

SK Hynix & The Dawn Of Custom Memory Solutions

SK Hynix reported Q423 revenues of 11.31 trillion won, +25% QoQ, +47% YoY. Op profit 346 billion won, first in five quarters. A pivot to custom...

William Keating

What SK Hynix's Latest Results Indicate for PC & Mobile Makers into 2025E, Including Apple

​SK Hynix expects strong industry demand growth in 2024 and beyond, particularly due to AI expansion. AI mobile phones will be a future driver and...

Vincent Fernando, CFA

What to Expect In SK Hynix and Samsung Earnings Calls

How will the SK hynix earnings call on Jan 25 and the Samsung earnings call on Jan 31 play out? Certain indicators, spelled out in this insight,...

Jim Handy

Taiwan Tech Weekly: Dell Outperforms Taiwan PC Names; TSMC Results Coming After Taiwan Election

​Taiwan PC names have gone from being top winners to top losers, while Nanya Tech underperformed compared to Micron and SK Hynix. Could Microsoft...

Vincent Fernando, CFA

Samsung's memory business sees significant growth in Q4, driven by AI and inventory stabilization, nearing positive margins while SK hynix turns...

SK Hynix expects strong industry demand growth in 2024 and beyond, particularly due to AI expansion. AI mobile phones will be a future driver and...

Taiwan PC names have gone from being top winners to top losers, while Nanya Tech underperformed compared to Micron and SK Hynix. Could Microsoft...