Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Thematic (Sector/Industry)

<ul>
<li>Taiwan’s UMC, the world’s third largest foundry, reported Q1’23 revenues of NT$54.2 billion, a decrease of 20.1% QoQ and a 14.5% YoY, in line with expectations</li>
<li>Q2'23 forecasted flat sequentially, outperforming TSMC's outlook for a 6.5% QoQ decline</li>
<li>Management foresees recovery being slower than previously anticipated and to admits to having very limited visibility into H2'23</li>
</ul>


Taiwan’s UMC, the world’s third largest foundry, reported Q1’23 revenues of NT$54.2 billion, a decrease of 20.1% QoQ and a 14.5% YoY, in line with expectations
Q2'23 forecasted flat sequentially, outperforming TSMC's outlook for a 6.5% QoQ decline
Management foresees recovery being slower than previously anticipated and to admits to having very limited visibility into H2'23


UMC. Calling Q1'23 The Trough Despite Limited Forward Visibility

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

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

<ul>
<li>TSMC's ADR spread just experienced one of its largest one-period drops in recent history. The ADRs are now trading at a 2.3% premium after a 4.2% drop.</li>
<li>UMC ADR's are trading at a -1.1% discount to their Taiwan shares. The spread has mostly been trading in negative territory over the last month. UMC earnings coming this week.</li>
<li>ASE ADR's are trading at a 4.7% premium. ASE's Taiwan shares are down 10% since end-March, compared to a 5% drop for the TAIEX Semiconductor Index.</li>
</ul>


TSMC's ADR spread just experienced one of its largest one-period drops in recent history. The ADRs are now trading at a 2.3% premium after a 4.2% drop.
UMC ADR's are trading at a -1.1% discount to their Taiwan shares. The spread has mostly been trading in negative territory over the last month. UMC earnings coming this week.
ASE ADR's are trading at a 4.7% premium. ASE's Taiwan shares are down 10% since end-March, compared to a 5% drop for the TAIEX Semiconductor Index.


Taiwan Dual-Listings: TSMC ADR Premium Hit by Large 1-Period Drop, UMC Discount & Earnings This Week

United Microelectron Sp Adr / Equity Bottom-Up

<ul>
<li>The divergence between the Philly Semiconductor Index and the Taiwan Market has continued despite both falling moderately.</li>
<li>Latest short interest data to note -- Faraday Technology experienced a surge in short interest ahead of its earnings this week. UMC has high short interest and results this week.</li>
<li>Institutionally underheld stock Transcend Media has experienced rising institutional ownership recently and has a very high short ratio.</li>
</ul>


The divergence between the Philly Semiconductor Index and the Taiwan Market has continued despite both falling moderately.
Latest short interest data to note -- Faraday Technology experienced a surge in short interest ahead of its earnings this week. UMC has high short interest and results this week.
Institutionally underheld stock Transcend Media has experienced rising institutional ownership recently and has a very high short ratio.


Taiwan Short Squeeze Potential: Faraday, UMC, Transcend Media Latest Stocks to Watch

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of Apr 21st which has an aggregated short interest worth USD12.3bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Mediatek, Unimicron Tech, Walsin Lihwa, Alchip Tech, Largan Precision, Quanta Computer, Wiwynn.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Apr 21st which has an aggregated short interest worth USD12.3bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Mediatek, Unimicron Tech, Walsin Lihwa, Alchip Tech, Largan Precision, Quanta Computer, Wiwynn.


TWSE Short Interest Weekly (Apr 21st): Mediatek, Unimicron Tech, Walsin Lihwa, Alchip Tech, Largan

<ul>
<li>TSMC is cutting its 2023E capex plans by 12% according to Taiwan's EDN. The company will also report earnings this Thursday.</li>
<li>TSMC suppliers ASML and Lam Research will also be reporting this week. Realtek will report this week as well.</li>
<li>Delta Thailand valuation still precarious relative to Delta Taiwan. Apple has continued to outperform the Quanta &amp; Pegatron pair.</li>
</ul>


TSMC is cutting its 2023E capex plans by 12% according to Taiwan's EDN. The company will also report earnings this Thursday.
TSMC suppliers ASML and Lam Research will also be reporting this week. Realtek will report this week as well.
Delta Thailand valuation still precarious relative to Delta Taiwan. Apple has continued to outperform the Quanta &amp; Pegatron pair.


Taiwan Tech Weekly: TSMC Cutting Capex, Earnings This Week; Suppliers ASML & Lam Also Will Report

Taiwan

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

United Microelectronics Corp (2303 TT)

UMC. Calling Q1'23 The Trough Despite Limited Forward Visibility

Q1’23 revenues of NT$54.2 billion, a decrease of 20.1% QoQ and a 14.5% YoY, in line with expectations. Recovery slower than previously anticipated,...

William Keating

Taiwan Dual-Listings: TSMC ADR Premium Hit by Large 1-Period Drop, UMC Discount & Earnings This Week

UMC ADR's are trading at a -1.1% discount to their Taiwan shares. The spread has mostly been trading in negative territory over the last month. UMC...

Vincent Fernando, CFA

Taiwan Short Squeeze Potential: Faraday, UMC, Transcend Media Latest Stocks to Watch

Latest short interest data to note -- Faraday Technology experienced a surge in short interest ahead of its earnings this week. UMC has high short...

Vincent Fernando, CFA

TWSE Short Interest Weekly (Apr 21st): Mediatek, Unimicron Tech, Walsin Lihwa, Alchip Tech, Largan

We analyzed TWSE short interest report for the past week and highlight short interest changes in Mediatek, Unimicron Tech, Walsin Lihwa, Alchip...

Ke Yan, CFA, FRM

Taiwan Tech Weekly: TSMC Cutting Capex, Earnings This Week; Suppliers ASML & Lam Also Will Report

Delta Thailand valuation still precarious relative to Delta Taiwan. Apple has continued to outperform the Quanta & Pegatron pair.

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)