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

Thematic (Sector/Industry)

According to the latest forecast from SEMI, details <a href="http://www.semi.org/en/wafer-shipments-forecast-increase-2017-2018-and-2019" target="_blank">here</a>, silicon wafer shipments are set to increase 8.2% in 2017, up from 3.2% in 2016. Furthermore, the sector is forecast to grow a further 3.2% in 2018 and 3.6% in 2019."Silicon shipment volumes are expected to ship at historic highs for this year and into 2019," said Dan Tracy, senior director of Industry Research &amp; Statistics at SEMI. "The expectation is for steady annual growth due to the proliferation of connected devices required for…

According to the latest forecast from SEMI, details here, silicon wafer shipments are set to increase 8.2% in 2017, up from 3.2% in 2016. Furthermore, the sector is forecast to grow a further 3.2% in 2018 and 3.6% in 2019."Silicon shipment volumes are expected to ship at historic highs for this year and into 2019," said Dan Tracy, senior director of Industry Research &amp; Statistics at SEMI. "The expectation is for steady annual growth due to the proliferation of connected devices required for…

Silicon Wafers- The Golden Goose That Keeps on Giving

French SOI silicon wafer manufacturer <a href="https://www.smartkarma.com/entities/24934" target="_blank" data-smartkarma-citation="entities:24934:1">SOITEC (SOI NQ)</a>, global #6 by market share, announced strong results on October 18'th 2017 with second quarter revenues of €73.3m, up 31% compared with Q2'17. On a sequential basis, second quarter FY'18 revenues were up 9% compared to the first quarter of FY'18.Shares were up sharply on high volume the following day, rising almost 11% before pulling back to close up 6.5%. For the first half of FY'18, revenues reached €143.0 million. Compared with the first…

French SOI silicon wafer manufacturer SOITEC (SOI NQ), global #6 by market share, announced strong results on October 18'th 2017 with second quarter revenues of €73.3m, up 31% compared with Q2'17. On a sequential basis, second quarter FY'18 revenues were up 9% compared to the first quarter of FY'18.Shares were up sharply on high volume the following day, rising almost 11% before pulling back to close up 6.5%. For the first half of FY'18, revenues reached €143.0 million. Compared with the first…

Silicon Wafer Soitec Up Sharply on Strong Earnings

On Oct. 2'nd 2017, the Semiconductor Industry Association (SIA) announced that worldwide sales of semiconductors reached $35.0 billion for the month of August, an increase of 23.9% compared to last August's total of $28.2 billion and 4.0% more than the July 2017 total of $33.6 billion. According to John Neuffer, SIA president and CEO,  “Sales in August increased across the board, with every major regional market and semiconductor product category posting gains on a month-to-month and…

On Oct. 2'nd 2017, the Semiconductor Industry Association (SIA) announced that worldwide sales of semiconductors reached $35.0 billion for the month of August, an increase of 23.9% compared to last August's total of $28.2 billion and 4.0% more than the July 2017 total of $33.6 billion. According to John Neuffer, SIA president and CEO,  “Sales in August increased across the board, with every major regional market and semiconductor product category posting gains on a month-to-month and…

Monthly Semiconductor Sales Reach $35 Billion Globally for First Time in August

After a decade-long period of declining ASP's, the price of silicon wafers bottomed out in mid-2016 and has been on an upward trajectory ever since. To put this in context, in 2007 silicon wafers represented about 5% of the global semiconductor market by value. By 2016 this had dropped to just 2%. This reversal of fortunes is indeed good news for a troubled industry that has consolidated from some 25 players two decades ago to the current situation where the top 5 wafer manufacturers supply over 90% of the market.What lies beneath this recovery and is it likely to continue? The latest silicon area shipment figures for Q2 2017, details from Semi <a href="http://www.semi.org/en/second-quarter-2017-silicon-wafer-shipments-increase-quarter-over-quarter-continue-ship-record" target="_blank">here</a>, showed a 4.2% increase from the previous quarter- and a 10.1% increase from the same quarter last year. For 2017, silicon wafer shipments are expected to grow by 5.1%- impressive- but just under 50% of the growth rate for overall semiconductor sales as we saw in  <a href="https://www.smartkarma.com/insights/a-brief-analysis-of-the-current-semiconductor-growth-cycle" target="_blank">A Brief Analysis of the Current Semiconductor Growth Cycle. </a> Why this disparity? In this Insight, we will go through a brief history of the silicon wafer industry, look at the key players and examine in detail the factors that are contributing to both the current growing shipments and the rising prices.

After a decade-long period of declining ASP's, the price of silicon wafers bottomed out in mid-2016 and has been on an upward trajectory ever since. To put this in context, in 2007 silicon wafers represented about 5% of the global semiconductor market by value. By 2016 this had dropped to just 2%. This reversal of fortunes is indeed good news for a troubled industry that has consolidated from some 25 players two decades ago to the current situation where the top 5 wafer manufacturers supply over 90% of the market.What lies beneath this recovery and is it likely to continue? The latest silicon area shipment figures for Q2 2017, details from Semi here, showed a 4.2% increase from the previous quarter- and a 10.1% increase from the same quarter last year. For 2017, silicon wafer shipments are expected to grow by 5.1%- impressive- but just under 50% of the growth rate for overall semiconductor sales as we saw in  A Brief Analysis of the Current Semiconductor Growth Cycle.  Why this disparity? In this Insight, we will go through a brief history of the silicon wafer industry, look at the key players and examine in detail the factors that are contributing to both the current growing shipments and the rising prices. 

Silicon Wafers for Semiconductors - Ugly Duckling Turns Golden Goose

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Sino American Silicon Products / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a>  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including <a href="https://www.smartkarma.com/entities/globalwafers-co-ltd" target="_blank" data-smartkarma-citation="entities:17916:1" rel="noopener">Globalwafers (6488 TT)</a> , <a href="https://www.smartkarma.com/entities/parade-technologies-ltd" target="_blank" data-smartkarma-citation="entities:6987:1" rel="noopener">Parade Technologies (4966 TT)</a> , <a href="https://www.smartkarma.com/entities/actron-technology-corp" target="_blank" data-smartkarma-citation="entities:4989:1" rel="noopener">Actron Technology (8255 TT)</a> and <a href="https://www.smartkarma.com/entities/advanced-wireless-semiconduc" target="_blank" data-smartkarma-citation="entities:16559:1" rel="noopener">Advanced Wireless Semiconduc (8086 TT)</a> with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 
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Besides the above-mentioned reasons, <a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a> remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 
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Sino American Silicon Products (5483 TT)  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including Globalwafers (6488 TT) , Parade Technologies (4966 TT) , Actron Technology (8255 TT) and Advanced Wireless Semiconduc (8086 TT) with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 

Besides the above-mentioned reasons, Sino American Silicon Products (5483 TT) remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 


Sino American Silicon (5483): Entry to Globalwafers and Others

Germany

Siltronic AG manufactures hyperpure silicon wafers. The Company offers products including non-polished and epitaxial coated wafers with different diameter sizes. Siltronic caters its products worldwide for use in computers, smartphones, flat-panel displays, navigation systems, automotive engine control systems, and many other applications.

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Siltronic AG (WAF GR)

Silicon Wafers- The Golden Goose That Keeps on Giving

According to the latest forecast from SEMI, details here, silicon wafer shipments are set to increase 8.2% in 2017, up from 3.2% in 2016....

William Keating

Silicon Wafer Soitec Up Sharply on Strong Earnings

French SOI silicon wafer manufacturer SOITEC (SOI NQ), global #6 by market share, announced strong results on October 18'th 2017 with second...

William Keating

Monthly Semiconductor Sales Reach $35 Billion Globally for First Time in August

On Oct. 2'nd 2017, the Semiconductor Industry Association (SIA) announced that worldwide sales of semiconductors reached $35.0 billion for the...

William Keating

Silicon Wafers for Semiconductors - Ugly Duckling Turns Golden Goose

After a decade-long period of declining ASP's, the price of silicon wafers bottomed out in mid-2016 and has been on an upward trajectory ever...

William Keating

Sino American Silicon (5483): Entry to Globalwafers and Others

Sino American Silicon remains a smart way to gain exposure in Globalwafers (24x PER), compared to SAS (13x PER). The other factor is that...

Henry Soediarko

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