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

Equity Bottom-Up

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

<ul>
<li>ARM IPO -- TSMC says will decide this week whether to participate. ARM is a company potentially without peers and enjoys support from Apple, Nvidia, AMD, and Samsung.</li>
<li>Elan, Yageo, ChipMOS top gainers in Taiwan -- Three of our Longs have done well most recently on high volume and little new public news.</li>
<li>Recent Dell &amp; HP results provide additional clarity on the coming AI PC wave.</li>
</ul>


ARM IPO -- TSMC says will decide this week whether to participate. ARM is a company potentially without peers and enjoys support from Apple, Nvidia, AMD, and Samsung.
Elan, Yageo, ChipMOS top gainers in Taiwan -- Three of our Longs have done well most recently on high volume and little new public news.
Recent Dell &amp; HP results provide additional clarity on the coming AI PC wave.


Taiwan Tech Weekly: TSMC to Decide on ARM This Week; Elan, Yageo, ChipMOS Flying; AI PC Wave Signals

<ul>
<li>TSMC: 9.2% premium -- Trending down, can consider shorting the ADR vs. the local.</li>
<li>ASE: 10.5% premium is historically high -- Short the ADR vs. the local.</li>
<li>ChipMOS: -0.4% discount, ADRs have lagged Taiwan shares -- Long ADR vs. local.</li>
</ul>


TSMC: 9.2% premium -- Trending down, can consider shorting the ADR vs. the local.
ASE: 10.5% premium is historically high -- Short the ADR vs. the local.
ChipMOS: -0.4% discount, ADRs have lagged Taiwan shares -- Long ADR vs. local.


Taiwan Dual Listings Monitor: TSMC, ASE Technology, and ChipMOS Opportunities

<ul>
<li>We have seen a general easing in ADR premiums since end-July, coming down as global markets have fallen.</li>
<li>TSMC's premium is easing down from the highs of June.</li>
<li>UMC and ChipMos ADR discounts appear to be bottoming given their historical range.</li>
</ul>


We have seen a general easing in ADR premiums since end-July, coming down as global markets have fallen.
TSMC's premium is easing down from the highs of June.
UMC and ChipMos ADR discounts appear to be bottoming given their historical range.


Taiwan Dual Listings Monitor: ADR Premiums Easing Down With Markets

<ul>
<li>Hon Hai beat expecations by nearly 30% but reduced 2023E sales guidance. However, the company's AI server business is expected to take market share and its EV business is developing.</li>
<li>Asustek management provided some clarity on when AI PCs might turn from dream into reality -- 3Q24E is when the company believes they will contribute significantly to sales volume.</li>
<li>Himax reported some improvement in demand from China beleaguered automotive industry and said it expects its dominant global market position for automotive display drivers to continue.</li>
</ul>


Hon Hai beat expecations by nearly 30% but reduced 2023E sales guidance. However, the company's AI server business is expected to take market share and its EV business is developing.
Asustek management provided some clarity on when AI PCs might turn from dream into reality -- 3Q24E is when the company believes they will contribute significantly to sales volume.
Himax reported some improvement in demand from China beleaguered automotive industry and said it expects its dominant global market position for automotive display drivers to continue.


Taiwan Tech Weekly: Hon Hai AI Servers Taking Share, Asus Specifies When AI PCs Will Drive Market

Taiwan Tech Focused Senior Analyst

Patrick Liao

King Yuan Electronics Co, Ltd. / Equity Bottom-Up

<ul>
<li>The <a href="https://www.smartkarma.com/entities/king-yuan-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:6630:1" rel="noopener">King Yuan Electronics Co, Ltd. (2449 TT)</a> outlook for 3Q24 could see a 5-10% quarter-on-quarter growth at present.  </li>
<li>
<a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a>  is currently the second-largest client of KYEC, and its business is rapidly expanding.</li>
<li>
<a href="https://www.smartkarma.com/entities/stmicroelectronics-nv-b981e30b-2a53-4f3d-b1cb-adaac140121c" target="_blank" data-smartkarma-citation="entities:33346:1" rel="noopener">STMicroelectronics NV (STM US)</a> and <a href="https://www.smartkarma.com/entities/will-semiconductor-co-ltd-shan" target="_blank" data-smartkarma-citation="entities:28274:1" rel="noopener">Will Semiconductor Shan (603501 CH)</a> are currently the third and fourth largest clients, respectively.</li>
</ul>


The King Yuan Electronics Co, Ltd. (2449 TT) outlook for 3Q24 could see a 5-10% quarter-on-quarter growth at present.  

NVIDIA Corp (NVDA US)  is currently the second-largest client of KYEC, and its business is rapidly expanding.

STMicroelectronics NV (STM US) and Will Semiconductor Shan (603501 CH) are currently the third and fourth largest clients, respectively.


KYEC (2449.TT): AI Highly Growth Potential may exceed Expectation.

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)

Taiwan Tech Weekly: TSMC to Decide on ARM This Week; Elan, Yageo, ChipMOS Flying; AI PC Wave Signals

Elan, Yageo, ChipMOS top gainers in Taiwan -- Three of our Longs have done well most recently on high volume and limited public developments.

Vincent Fernando, CFA

Taiwan Dual Listings Monitor: TSMC, ASE Technology, and ChipMOS Opportunities

We analyze ADR premium/discounts vs. their historical ranges, relative to their latest related share price trends, and short interest.

Vincent Fernando, CFA

Taiwan Dual Listings Monitor: ADR Premiums Easing Down With Markets

TSMC's premium is easing from the highs of June. UMC and ChipMOS ADR discounts appear to be bottoming given their historical range.

Vincent Fernando, CFA

KYEC (2449.TT): AI Highly Growth Potential may exceed Expectation.

KYEC outlook for 3Q24 shows potential 5-10% growth, with NVDA Corp as second-largest client and expanding business. STMicroelectronics and Will...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Taiwan Tech Weekly: TSMC to Decide on ARM This Week; Elan, Yageo, ChipMOS Flying; AI PC Wave Signals

Elan, Yageo, ChipMOS top gainers in Taiwan -- Three of our Longs have done well most recently on high volume and limited public developments.

Vincent Fernando, CFA

Taiwan Dual Listings Monitor: TSMC, ASE Technology, and ChipMOS Opportunities

We analyze ADR premium/discounts vs. their historical ranges, relative to their latest related share price trends, and short interest.

Vincent Fernando, CFA

Taiwan Dual Listings Monitor: ADR Premiums Easing Down With Markets

TSMC's premium is easing from the highs of June. UMC and ChipMOS ADR discounts appear to be bottoming given their historical range.

Vincent Fernando, CFA

Taiwan Tech Weekly: Hon Hai AI Servers Taking Share, Asus Specifies When AI PCs Will Drive Market

Also -- According to media reports, Apple has bought all of TSMC's leading-edge 3nm capacity and may have exclusivity for this 3nm production...

Vincent Fernando, CFA

KYEC (2449.TT): AI Highly Growth Potential may exceed Expectation.

KYEC outlook for 3Q24 shows potential 5-10% growth, with NVDA Corp as second-largest client and expanding business. STMicroelectronics and Will...

Patrick Liao