Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

<ul>
<li>Nanya Technology's recent results showed a margin and ASP decline that appears to have performed better than the industry average. </li>
<li>However, Nanya Technology may have traded off better pricing and margins for a continuation of high inventory levels. Nanya shares have underperformed Micron since our Mar 30th piece.</li>
<li>Nanya said it expects a marginal recovery for the DRAM market in the second half of 2023E. SK Hynix will be a next major data point, to report April 26th.</li>
</ul>


Nanya Technology's recent results showed a margin and ASP decline that appears to have performed better than the industry average. 
However, Nanya Technology may have traded off better pricing and margins for a continuation of high inventory levels. Nanya shares have underperformed Micron since our Mar 30th piece.
Nanya said it expects a marginal recovery for the DRAM market in the second half of 2023E. SK Hynix will be a next major data point, to report April 26th.


Memory Monitor: Nanya Technology Hopeful of 2H23E DRAM Recovery

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Thematic (Sector/Industry)

<ul>
<li>March revenue numbers from the Taiwan semi ecosystem are surprisingly good.</li>
<li>The sequential decline in Q1 2023 PC unit shipments was at the low end of the predicted range</li>
<li>Quanta, a leading ODM Direct Server manufacturer,  had an unexpectedly strong first quarter. </li>
</ul>


March revenue numbers from the Taiwan semi ecosystem are surprisingly good.
The sequential decline in Q1 2023 PC unit shipments was at the low end of the predicted range
Quanta, a leading ODM Direct Server manufacturer,  had an unexpectedly strong first quarter. 


Semiconductors: More Green Shoots Of Recovery Keep On Popping Up

<ul>
<li>ASPs &amp; bit shipments decreased by high single digits percent QoQ</li>
<li>Anticipated recovery in H2 '23 will be slow &amp; gradual</li>
<li>The potential for inventory write-downs remains a headwind but March revenue MoM increase is a hopeful sign</li>
</ul>


ASPs &amp; bit shipments decreased by high single digits percent QoQ
Anticipated recovery in H2 '23 will be slow &amp; gradual
The potential for inventory write-downs remains a headwind but March revenue MoM increase is a hopeful sign


<ul>
<li>Samsung's Q1 2023 operating profit has collapsed to 0.6 trillion Korean won (TKW), down from 4.31 TKW in Q2 2022 and 14.12 TWK in Q1 2022</li>
<li>A promise to "meaningfully lower" memory production sent competitor shares soaring, presumably in anticipation of a faster end to the current memory downturn.</li>
<li>The memory production cut report is elusive and vaguely attributed. We don't anticipate a return to meaningful profitability in the memory segment until Q1 2024. </li>
</ul>


Samsung's Q1 2023 operating profit has collapsed to 0.6 trillion Korean won (TKW), down from 4.31 TKW in Q2 2022 and 14.12 TWK in Q1 2022
A promise to "meaningfully lower" memory production sent competitor shares soaring, presumably in anticipation of a faster end to the current memory downturn.
The memory production cut report is elusive and vaguely attributed. We don't anticipate a return to meaningful profitability in the memory segment until Q1 2024. 


Samsung Q1 2023 Profit Collapse Triggers Memory Production Cut Promise In Regulatory Filing

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

<ul>
<li>Samsung announced that it would reduce memory chip production in light of crashing profits, this is after the company had previously said it would not reduce production. Memory names rallied.</li>
<li>Hon Hai announced a $820m investment plan for EV manufacturing in southern Taiwan.</li>
<li>Japan's semiconductor manufacturing equipment export restrictions targeting China will take effect starting in July.</li>
</ul>


Samsung announced that it would reduce memory chip production in light of crashing profits, this is after the company had previously said it would not reduce production. Memory names rallied.
Hon Hai announced a $820m investment plan for EV manufacturing in southern Taiwan.
Japan's semiconductor manufacturing equipment export restrictions targeting China will take effect starting in July.


Taiwan Tech Weekly: Samsung Finally Announces Chip Production Cuts; Hon Hai's New EV Factory

Taiwan

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

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Nanya Technology (2408 TT)

Memory Monitor: Nanya Technology Hopeful of 2H23E DRAM Recovery

Nanya Technology may have traded off better pricing and margins for a continuation of high inventory levels. Nanya shares have underperformed...

Vincent Fernando, CFA

Semiconductors: More Green Shoots Of Recovery Keep On Popping Up

March revenue numbers from the Taiwan semi ecosystem are surprisingly good. The sequential decline in Q1 2023 PC unit shipments was at the low end...

William Keating

Nanya Q1 2023 Revenue Declines 19.2% QoQ

ASPs & bit shipments decreased by high single digits % QoQ. Anticipated recovery in H2 '23 will be slow & gradual. March revenue MoM increase is a...

William Keating

Samsung Q1 2023 Profit Collapse Triggers Memory Production Cut Promise In Regulatory Filing

Samsung's Q1 2023 operating profit collapsed to 0.6 TKW, down from 4.31 TKW in Q2 22 and 14.12 TWK in Q1 22. Don't anticipate a return to...

William Keating

Taiwan Tech Weekly: Samsung Finally Announces Chip Production Cuts; Hon Hai's New EV Factory

Samsung reversed its production capacity strategy after suffering losses. Also, Japan's semiconductor manufacturing equipment export restrictions...

Vincent Fernando, CFA

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