Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

Novatek Microelectronics Corp / Equity Bottom-Up

<ul>
<li>Novatek's share price has surged by more than 15% in four days due to the news of Novatek's alliance with ARM to develop Neoverse V2.</li>
<li>While the decision on whether the iPhone 16 will feature OLED technology is still pending, the general sentiment is optimistic.</li>
<li>Novatek is set to leverage Intel Corp (INTC US)'s 12nm capacity through United Microelectron Sp Adr (UMC US) in the near future.</li>
</ul>


Novatek's share price has surged by more than 15% in four days due to the news of Novatek's alliance with ARM to develop Neoverse V2.
While the decision on whether the iPhone 16 will feature OLED technology is still pending, the general sentiment is optimistic.
Novatek is set to leverage Intel Corp (INTC US)'s 12nm capacity through United Microelectron Sp Adr (UMC US) in the near future.


Novatek (3034.TT): It's Said to Alliance with ARM to Build up Neoverse V2, Targeting AI Market.

<ul>
<li>The sales of Jan 2024F were the lowest during 2022-2024F, indicating a likely downtrend for 1Q24F.</li>
<li>Demand is expected to remain sluggish in 2Q24F, potentially resulting in decreased raw wafer demand for Logic and Memory in 2Q24F.</li>
<li>The market for 12" raw wafers is expected to have a more stable demand-supply balance, while raw wafers of 8” and smaller sizes could experience reduced demand in 1H24F.</li>
</ul>


The sales of Jan 2024F were the lowest during 2022-2024F, indicating a likely downtrend for 1Q24F.
Demand is expected to remain sluggish in 2Q24F, potentially resulting in decreased raw wafer demand for Logic and Memory in 2Q24F.
The market for 12" raw wafers is expected to have a more stable demand-supply balance, while raw wafers of 8” and smaller sizes could experience reduced demand in 1H24F.


Globalwafers (6488.TT): The Revenue Is Expected to Improve in 2H24F

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

United Microelectron Sp Adr / Equity Bottom-Up

<ul>
<li>UMC delivered full-year net income roughly in line with consensus forecasts, though reported a capacity utilization drop sequentially.</li>
<li>Capacity utilization fell during the latest quarter despite strength from UMC's 22nm &amp; 28nm offerings due to older capacity weighing down performance.</li>
<li>UMC's latest US$3.3bn capex budget contrasted with the rising cost of advanced fabs shows how Intel's Foundry business will be increasingly needed by the industry.</li>
</ul>


UMC delivered full-year net income roughly in line with consensus forecasts, though reported a capacity utilization drop sequentially.
Capacity utilization fell during the latest quarter despite strength from UMC's 22nm &amp; 28nm offerings due to older capacity weighing down performance.
UMC's latest US$3.3bn capex budget contrasted with the rising cost of advanced fabs shows how Intel's Foundry business will be increasingly needed by the industry.


UMC's Results Show How Intel's New Foundry Business Is Poised to Become More Valuable

<ul>
<li>MediaTek expects a reduced DOI level in 2024F while maintaining operating expenses and pricing discipline in 2023.</li>
<li>The upgrade cycle has begun for devices equipped with AI functions. The Dimensity 9300 is just the first edge AI product for smartphones. </li>
<li>MediaTek does not predict a significant increase in demand and expects a steady demand for smartphones. </li>
</ul>


MediaTek expects a reduced DOI level in 2024F while maintaining operating expenses and pricing discipline in 2023.
The upgrade cycle has begun for devices equipped with AI functions. The Dimensity 9300 is just the first edge AI product for smartphones. 
MediaTek does not predict a significant increase in demand and expects a steady demand for smartphones. 


MediaTek (2454.TT): 2024F Indicating a Complete Recovery from the Previous Downturn Situation.

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

<ul>
<li>UMC &amp; Mediatek Results Today in Taiwan, Samsung Also Reporting; Taiwan AI Names Flying; Himax &amp; Novatek Top Losers Ahead of Results.</li>
<li>Semiconductor Surge: Southeast Asia Taking Center Stage Amid Taiwan's Geopolitical Shift</li>
<li>First Run of Tech/Semis' Guidance Tells Us What Industries and Companies to Avoid</li>
</ul>


UMC &amp; Mediatek Results Today in Taiwan, Samsung Also Reporting; Taiwan AI Names Flying; Himax &amp; Novatek Top Losers Ahead of Results.
Semiconductor Surge: Southeast Asia Taking Center Stage Amid Taiwan's Geopolitical Shift
First Run of Tech/Semis' Guidance Tells Us What Industries and Companies to Avoid


Taiwan Tech Weekly: Semiconductors Surging in Southeast Asia; UMC & Mediatek Results Today

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.

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United Microelectronics Corp (2303 TT)

Novatek (3034.TT): It's Said to Alliance with ARM to Build up Neoverse V2, Targeting AI Market.

Novatek's stock soars on partnership with ARM for Neoverse V2, potential collaboration with Intel for 12nm capacity. Optimism surrounds iPhone...

Patrick Liao

Globalwafers (6488.TT): The Revenue Is Expected to Improve in 2H24F

Sales of Jan 2024F hit a low, signaling a potential downtrend for 1Q24F. Demand in 2Q24F may decrease raw wafer demand for Logic and Memory. 12"...

Patrick Liao

UMC's Results Show How Intel's New Foundry Business Is Poised to Become More Valuable

UMC's net income met expectations, but capacity utilization fell due to older capacity. UMC's capex budget shows the challenges in keeping pace...

Vincent Fernando, CFA

MediaTek (2454.TT): 2024F Indicating a Complete Recovery from the Previous Downturn Situation.

MediaTek anticipates lower DOI in 2024 but maintains pricing discipline and operating expenses. The D9300 marks the start of the AI upgrade cycle...

Patrick Liao

Taiwan Tech Weekly: Semiconductors Surging in Southeast Asia; UMC & Mediatek Results Today

Key Taiwan results ahead include Mediatek, UMC, Realtek, Novatek, and Himax. Taiwan AI names have been flying lately while Novatek and Himax have...

Vincent Fernando, CFA

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Novatek (3034.TT): It's Said to Alliance with ARM to Build up Neoverse V2, Targeting AI Market.

​Novatek's stock soars on partnership with ARM for Neoverse V2, potential collaboration with Intel for 12nm capacity. Optimism surrounds iPhone...

Patrick Liao

Globalwafers (6488.TT): The Revenue Is Expected to Improve in 2H24F

​Sales of Jan 2024F hit a low, signaling a potential downtrend for 1Q24F. Demand in 2Q24F may decrease raw wafer demand for Logic and Memory. 12"...

Patrick Liao

UMC's Results Show How Intel's New Foundry Business Is Poised to Become More Valuable

​UMC's net income met expectations, but capacity utilization fell due to older capacity. UMC's capex budget shows the challenges in keeping pace...

Vincent Fernando, CFA

MediaTek (2454.TT): 2024F Indicating a Complete Recovery from the Previous Downturn Situation.

​MediaTek anticipates lower DOI in 2024 but maintains pricing discipline and operating expenses. The D9300 marks the start of the AI upgrade cycle...

Patrick Liao

Taiwan Tech Weekly: Semiconductors Surging in Southeast Asia; UMC & Mediatek Results Today

Key Taiwan results ahead include Mediatek, UMC, Realtek, Novatek, and Himax. Taiwan AI names have been flying lately while Novatek and Himax have...

Vincent Fernando, CFA

Novatek's stock soars on partnership with ARM for Neoverse V2, potential collaboration with Intel for 12nm capacity. Optimism surrounds iPhone...

Sales of Jan 2024F hit a low, signaling a potential downtrend for 1Q24F. Demand in 2Q24F may decrease raw wafer demand for Logic and Memory. 12"...

UMC's net income met expectations, but capacity utilization fell due to older capacity. UMC's capex budget shows the challenges in keeping pace...

MediaTek anticipates lower DOI in 2024 but maintains pricing discipline and operating expenses. The D9300 marks the start of the AI upgrade cycle...