Asia and Global Semiconductor and Tech Research

Andrew Lu

Equity Bottom-Up

<h2>What's new?</h2><p>Economic Daily reports today that <a href="https://www.smartkarma.com/entities/969" target="_blank" data-smartkarma-citation="entities:969">Qualcomm Inc (QCOM US)</a> is lowering its upcoming mid-end version smartphone SoC Snapdragon 450 price by 30% to US$10.0-10.5 before <a href="https://www.smartkarma.com/entities/772" target="_blank" data-smartkarma-citation="entities:772">Mediatek Inc (2454 TT)</a> introduction of P23 and P30 in 4Q17. To match the price cut from Qualcomm, MediaTek needs to cut its P23 price by 33-39% to US$8 from earlier planned US$12-13. Also, according to the news, <a href="https://www.smartkarma.com/entities/11230" target="_blank" data-smartkarma-citation="entities:11230">Taiwan Semiconductor Mfg. Co. Ltd. (2330 TT)</a> is priced at US$7,000 per wafer on 16nm for P23 vs. <a href="https://www.smartkarma.com/entities/191" target="_blank" data-smartkarma-citation="entities:191">Samsung</a>…</p>

What's new?Economic Daily reports today that Qualcomm Inc (QCOM US) is lowering its upcoming mid-end version smartphone SoC Snapdragon 450 price by 30% to US$10.0-10.5 before Mediatek Inc (2454 TT) introduction of P23 and P30 in 4Q17. To match the price cut from Qualcomm, MediaTek needs to cut its P23 price by 33-39% to US$8 from earlier planned US$12-13. Also, according to the news, Taiwan Semiconductor Mfg. Co. Ltd. (2330 TT) is priced at US$7,000 per wafer on 16nm for P23 vs. Samsung…

Can MediaTek Keep Its Margin Promise if Qualcomm Is Cutting the Price by 30%? Cost Cut Coming

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>A review of Vermilion's Sector Rankings (RSR) reveals Cap-weighted Groups, as a whole, ranking better<br>than average-weighted (or equal-weighted), reflecting the S&amp;P 500's outperformance relative to the Russell 2000.  We share comments on a number of sectors and highlight bottoms-up ideas in the semiconductor and software space.</p>

A review of Vermilion's Sector Rankings (RSR) reveals Cap-weighted Groups, as a whole, ranking better than average-weighted (or equal-weighted), reflecting the S&amp;P 500's outperformance relative to the Russell 2000.  We share comments on a number of sectors and highlight bottoms-up ideas in the semiconductor and software space.

<h2>What's new?</h2><p><a href="https://www.smartkarma.com/entities/21591" target="_blank" data-smartkarma-citation="entities:21591:1">Bayerische Motoren Werke AG (BMW GR)</a>, <a href="https://www.smartkarma.com/entities/16764" target="_blank" data-smartkarma-citation="entities:16764:1">Intel Corp (INTC US)</a>, <a href="https://www.smartkarma.com/entities/22927" target="_blank" data-smartkarma-citation="entities:22927:1">Mobileye N.V. (MBLY US)</a> announced today they have signed a memorandum of understanding with the intention for <a href="https://www.smartkarma.com/entities/798" target="_blank" data-smartkarma-citation="entities:798:1">Fiat Chrysler Automobiles Nv (FCAU US)</a> to join in developing an autonomous driving platform for global deployment. According to FCA's CEO, in order to advance autonomous driving technology, it is vital to form partnerships among automakers, technology providers, and suppliers and joining this cooperation will enable…</p>

What's new?Bayerische Motoren Werke AG (BMW GR), Intel Corp (INTC US), Mobileye N.V. (MBLY US) announced today they have signed a memorandum of understanding with the intention for Fiat Chrysler Automobiles Nv (FCAU US) to join in developing an autonomous driving platform for global deployment. According to FCA's CEO, in order to advance autonomous driving technology, it is vital to form partnerships among automakers, technology providers, and suppliers and joining this cooperation will enable…

Fiat Chrysler Is Leaving Waymo to Join BMW-Intel Autonomous Platform; Negative/Positive To?

<h2>Summary</h2><ul>
<li><em><strong>Spreadtrum is back to the game</strong>: Spreadtrum unveiled SC9853I based on Intel's 14nm foundry process, 1.8Ghz Octa-Airmont-core and supports 4G LTE Cat-7 downlink (300Mbps) and Cat-13 uplink (150Mbps) for 5-mode communication standard. </em></li>
<li><em><strong>Are these negative to MediaTek and Qualcomm</strong>? We would agree on Spreadtrum/RDA back to the game by leveraging Intel CPU/GPU/baseband cores and 14nm Production as a short-term negative to MediaTek and Qualcomm in term of market share and pricing competitions.</em></li>
<li>
<em><strong>Why</strong></em>…</li>
</ul>

Summary
Spreadtrum is back to the game: Spreadtrum unveiled SC9853I based on Intel's 14nm foundry process, 1.8Ghz Octa-Airmont-core and supports 4G LTE Cat-7 downlink (300Mbps) and Cat-13 uplink (150Mbps) for 5-mode communication standard. 
Are these negative to MediaTek and Qualcomm? We would agree on Spreadtrum/RDA back to the game by leveraging Intel CPU/GPU/baseband cores and 14nm Production as a short-term negative to MediaTek and Qualcomm in term of market share and pricing competitions.

Why…


Spreadtrum Is Back to the Game by Leveraging Intel IPs and Production; Negative to MediaTek?

<h2>Double digit 2Q17 sales beat but guides 3Q17 below seasonal growth</h2><ul><li>
<strong>Double digit 2Q17 sales beat</strong>: The leading gaming and AI graphic chip vendor, <a href="https://www.smartkarma.com/entities/5891" target="_blank" data-smartkarma-citation="entities:5891:1">Nvidia Corp (NVDA US)</a> reports 2Q17 EPS of US$0.92, which was US$22 cents or 31% better than Bloomberg consensus estimates mainly due to 14% beat on sales to US$2.23bn (15% q/q and 56% y/y) and 3ppts better on net margin. We attribute 2Q17 sales upside surprise from Pascal-based GeForce gaming (15% q/q, 52% y/y), professional visualization for high-end…</li></ul>

Double digit 2Q17 sales beat but guides 3Q17 below seasonal growth
Double digit 2Q17 sales beat: The leading gaming and AI graphic chip vendor, Nvidia Corp (NVDA US) reports 2Q17 EPS of US$0.92, which was US$22 cents or 31% better than Bloomberg consensus estimates mainly due to 14% beat on sales to US$2.23bn (15% q/q and 56% y/y) and 3ppts better on net margin. We attribute 2Q17 sales upside surprise from Pascal-based GeForce gaming (15% q/q, 52% y/y), professional visualization for high-end…

Nvidia - Most of Good News Priced in if Following the Below Seasonal Sales Guidance?

Taiwan

Taiwan Semiconductor Manufacturing Company Ltd. manufactures integrated circuits based on its proprietary designs.  The Company offers a comprehensive set of integrated circuit fabrication processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory and BiCMOS chips.  Taiwan Semiconductor is an affiliate of Philips Electronics N.V.

Taiwan Semiconductor (TSMC) - ADR (TSM US)

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Taiwan Semiconductor (TSMC) - ADR (TSM US)

Can MediaTek Keep Its Margin Promise if Qualcomm Is Cutting the Price by 30%? Cost Cut Coming

What's new?Economic Daily reports today that Qualcomm Inc (QCOM US) is lowering its upcoming mid-end version smartphone SoC Snapdragon 450 price by...

Andrew Lu

U.S. Equity Sector Rankings

A review of Vermilion's Sector Rankings (RSR) reveals Cap-weighted Groups, as a whole, ranking betterthan average-weighted (or equal-weighted),...

Vermilion Research

Fiat Chrysler Is Leaving Waymo to Join BMW-Intel Autonomous Platform; Negative/Positive To?

What's new?Bayerische Motoren Werke AG (BMW GR), Intel Corp (INTC US), Mobileye N.V. (MBLY US) announced today they have signed a memorandum of...

Andrew Lu

Spreadtrum Is Back to the Game by Leveraging Intel IPs and Production; Negative to MediaTek?

Summary Spreadtrum is back to the game: Spreadtrum unveiled SC9853I based on Intel's 14nm foundry process, 1.8Ghz Octa-Airmont-core and supports 4G...

Andrew Lu

Nvidia - Most of Good News Priced in if Following the Below Seasonal Sales Guidance?

Double digit 2Q17 sales beat but guides 3Q17 below seasonal growth Double digit 2Q17 sales beat: The leading gaming and AI graphic chip...

Andrew Lu

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