Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<ul><li>Pompeo advises Taiwan to innovate constantly in chip industry to maintain dominance and not be complacent.</li><li>LG Energy Solutions may surpass Panasonic in launching mass production of 46800 batteries, a significant development in the industry.</li><li>Canadian startup CEMWorks is positioning itself as a key player in semiconductors, 5G, and AI with its simulation tool. SDC and LGD lead OLED monitor market with fast growth and gaming focus. China's internet giants see 1Q24 revenue soar thanks to AI technology.</li></ul>

Pompeo advises Taiwan to innovate constantly in chip industry to maintain dominance and not be complacent.LG Energy Solutions may surpass Panasonic in launching mass production of 46800 batteries, a significant development in the industry.Canadian startup CEMWorks is positioning itself as a key player in semiconductors, 5G, and AI with its simulation tool. SDC and LGD lead OLED monitor market with fast growth and gaming focus. China's internet giants see 1Q24 revenue soar thanks to AI technology.

Tech Supply Chain Tracker (22-May-2024): Pompeo urges Taiwan to innovate for chip dominance.

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

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

<ul><li>It’s time for the main event: earnings are upon us. As is customary, let’s start with TSMC, move to ASML and Alphawave, and then discuss VAT Group.</li><li>TSM revenue is above guidance, gross margins are a bit ahead of the midpoint, and operating margins are at the high end of guidance.</li><li>First, while this is a good result, semiconductors are due for a correction. I wrote about this in March, and SOXX has quietly crept downwards since then.</li></ul>

It’s time for the main event: earnings are upon us. As is customary, let’s start with TSMC, move to ASML and Alphawave, and then discuss VAT Group.TSM revenue is above guidance, gross margins are a bit ahead of the midpoint, and operating margins are at the high end of guidance.First, while this is a good result, semiconductors are due for a correction. I wrote about this in March, and SOXX has quietly crept downwards since then.

TSMC, ASML, VAT Group, and Alphawave Earnings

<ul><li>EVs and smart driving systems in China's car market impacted by price competition, leading to changes in industry dynamics.</li><li>Blue carbon uncertainties could hinder progress towards achieving net-zero goals, says scientist, highlighting need for further research.</li><li>Indian solar firm reducing dependence on Chinese imports for solar components to enhance self-sufficiency, aiming for greater control over supply chain.</li></ul>

EVs and smart driving systems in China's car market impacted by price competition, leading to changes in industry dynamics.Blue carbon uncertainties could hinder progress towards achieving net-zero goals, says scientist, highlighting need for further research.Indian solar firm reducing dependence on Chinese imports for solar components to enhance self-sufficiency, aiming for greater control over supply chain.

Tech Supply Chain Tracker (21-May-2024): EVs and smart driving tech hit by Chinese car market price war.

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>TSMC and ASML reported 1Q24 results last week; both stocks have fallen post results, impacted by global concerns despite a strong outlook for these two leaders into 2025E.</li>
<li>TSMC guided for strong growth not just in 2024E, but if one digs into management's comments, they actually provided strong visibility into their 2028E internal revenue expectations.</li>
<li>For ASML, its EUV product business is the key indicator to watch. We believe TSMC shares will continue to re-rate even through a period of global economic softness.</li>
</ul>


TSMC and ASML reported 1Q24 results last week; both stocks have fallen post results, impacted by global concerns despite a strong outlook for these two leaders into 2025E.
TSMC guided for strong growth not just in 2024E, but if one digs into management's comments, they actually provided strong visibility into their 2028E internal revenue expectations.
For ASML, its EUV product business is the key indicator to watch. We believe TSMC shares will continue to re-rate even through a period of global economic softness.


TSMC Just Provided Substantial Visibility into Their Long-Term Growth Estimate; ASML Adds Color

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>Q124 revenues of $18.87 billion, marginally above the high end of the guided range, up 12.9% YoY and down 3.8% QoQ. Guided Q224 +6% QoQ.  Maintained full year 2024 outlook</li>
<li>Unnecessary, minor downward revisions for semi &amp; foundry growth, combined with confusion about the reason triggered an allergic reaction on the markets. TSMC down ~8% since.</li>
<li>SMCI plunged 23% by Friday close, ARM down 16.9%, NVIDIA down 10%, AMD &amp; Micron down ~5% etc. Nice one, TSMC!</li>
</ul>


Q124 revenues of $18.87 billion, marginally above the high end of the guided range, up 12.9% YoY and down 3.8% QoQ. Guided Q224 +6% QoQ.  Maintained full year 2024 outlook
Unnecessary, minor downward revisions for semi &amp; foundry growth, combined with confusion about the reason triggered an allergic reaction on the markets. TSMC down ~8% since.
SMCI plunged 23% by Friday close, ARM down 16.9%, NVIDIA down 10%, AMD &amp; Micron down ~5% etc. Nice one, TSMC!


TSMC. How To Turn Chicken Salad Into Chicken Sh*t

Taiwan

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.

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.

Taiwan Semiconductor Manufacturing Company, Ltd. manufactures and markets integrated circuits. The Company provides the following services: wafer manufacturing, wafer probing, assembly and testing, mask production, and design services. TSMC's ICs are used in computer, communication, consumer electronics, automotive, and industrial equipment industries.

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

Realtek Semiconductor Corp. designs, tests, and distributes integrated circuits which are used in consumer electronics, computer systems and peripherals, and communication network hardware.  The Company also provides technical counseling and systems software services.

Global Unichip Corporation designs and produces a wide variety of silicon chips.

Novatek Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs).  The Company's products are used in telecommunication, computer peripherals, and LCD (liquid crystal display) drivers.

Vanguard International Semiconductor Corporation offers integrated circuit foundry services.  The Company manufactures 0.18um logic, mixed-signal, analog, high voltage, low power, CMOS RF, flash, embedded memory, and bipolar CMOS DMOS semiconductors.

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.

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.

Broadcom Inc. designs, develops, and supplies semiconductor and infrastructure software solutions. The Company offers storage adapters, controllers, networking processors, motion control encoders, and optical sensors, as well as infrastructure and security software to modernize, optimize, and secure the most complex hybrid environments. Broadcom serves customers worldwide.

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.

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)

Tech Supply Chain Tracker (22-May-2024): Pompeo urges Taiwan to innovate for chip dominance.

Pompeo urges Taiwan to innovate in chips, LGES to surpass Panasonic in battery production, CEMWorks aims to excel in semiconductors, SDC and LGD...

Tech Supply Chain Tracker

TSMC, ASML, VAT Group, and Alphawave Earnings

It’s time for the main event: earnings are upon us. As is customary, let’s start with TSMC, move to ASML and Alphawave, and then discuss VAT Group.

Fabricated Knowledge

Tech Supply Chain Tracker (21-May-2024): EVs and smart driving tech hit by Chinese car market price war.

Price competition impacts EVs and smart driving systems in China; blue carbon uncertainties challenge net-zero goals; AI PCs face obstacles; Indian...

Tech Supply Chain Tracker

TSMC Just Provided Substantial Visibility into Their Long-Term Growth Estimate; ASML Adds Color

If you dig into the details, TSMC provided substantial insight into the company's internal estimates for long-term revenue. For ASML, we discuss...

Vincent Fernando, CFA

TSMC. How To Turn Chicken Salad Into Chicken Sh*t

TSMC beat & raised guidance, maintained FY outlook. Minor, unnecessary tinkering with semi and foundry forecasts plus confusion about the root...

William Keating

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