Asia and Global Semiconductor and Tech Research

Andrew Lu

Equity Bottom-Up

<h2>What's new?</h2><p>Nikkei News reported <a href="https://www.smartkarma.com/entities/666" target="_blank" data-smartkarma-citation="entities:666:1">Apple Inc (AAPL US)</a> is designing its own main power management chips for use in iPhones as early as in 2018, cutting dependence on <a href="https://www.smartkarma.com/entities/21607" target="_blank" data-smartkarma-citation="entities:21607:1">Dialog Semiconductor PLC (DLG GR)</a>, according to industry sources, as shares in the U.K. developer plunged after the news out. The main power management chip controls an iPhone's charging function, battery management, and energy consumption. "Based on Apple's current plan, they are set to replace partially, or around half of its power…</p>

What's new?Nikkei News reported Apple Inc (AAPL US) is designing its own main power management chips for use in iPhones as early as in 2018, cutting dependence on Dialog Semiconductor PLC (DLG GR), according to industry sources, as shares in the U.K. developer plunged after the news out. The main power management chip controls an iPhone's charging function, battery management, and energy consumption. "Based on Apple's current plan, they are set to replace partially, or around half of its power…

Nikkei Said Apple Cuts Dialog on Power ICs Supply; We Highlighted This in May and More to Come

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

MSCI Emerging Markets Index / Technical Analysis

<p>Today’s report provides a top-down synopsis of the technical condition of emerging markets across the globe, and includes a wide variety of bottom-up recommendations, spanning most sectors and all market capitalizations.</p>

Today’s report provides a top-down synopsis of the technical condition of emerging markets across the globe, and includes a wide variety of bottom-up recommendations, spanning most sectors and all market capitalizations.

Emerging Markets: Technical Strategy & Reccommendations

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

<h2><strong>Executive summary</strong></h2><p><em>Despite slightly weaker 1Q17 sales, TSMC's strong 1Q17 margin guidance should drive Bloomberg consensus estimates to be raised. However, during the results/guidance conference call, we are confused by some comments provided by TSMC. We would believe the company might be too conservative to provide some top-line sales guidance but reveals some positives during the call. </em></p><ul><li><p><em><strong>Guides in line market growth? </strong>TSMC guides 2017 US dollar sales growth of 5-10% y/y, in line with foundry</em>…</p></li></ul>

Executive summaryDespite slightly weaker 1Q17 sales, TSMC's strong 1Q17 margin guidance should drive Bloomberg consensus estimates to be raised. However, during the results/guidance conference call, we are confused by some comments provided by TSMC. We would believe the company might be too conservative to provide some top-line sales guidance but reveals some positives during the call. Guides in line market growth? TSMC guides 2017 US dollar sales growth of 5-10% y/y, in line with foundry…

Thematic (Sector/Industry)

<h2>Summary</h2><ul>
<li><em>Starting October 13, 2016, TSMC will be the first company to report 3Q16 results and provide 4Q16 guidance to kick off semi/tech earnings season. Driven by iPhone 7, <a href="https://www.smartkarma.com/entities/666" target="_blank" data-smartkarma-citation="entities:666:1">Apple Inc (AAPL US)</a> Watch 2 production built, open market smartphones in emerging countries, and <a href="https://www.smartkarma.com/entities/191" target="_blank" data-smartkarma-citation="entities:191:1">Samsung Electronics Co Ltd (005930 KS)</a> Note 7 battery problem, our 3Q16 sales report takeaways suggest y/y strengths in foundry and fabless vendors and q/q strengths in Apple's touch panel/pressure sensor and OEM/EMS vendors.  </em></li>
<li>
<em>On</em>…</li>
</ul>

Summary
Starting October 13, 2016, TSMC will be the first company to report 3Q16 results and provide 4Q16 guidance to kick off semi/tech earnings season. Driven by iPhone 7, Apple Inc (AAPL US) Watch 2 production built, open market smartphones in emerging countries, and Samsung Electronics Co Ltd (005930 KS) Note 7 battery problem, our 3Q16 sales report takeaways suggest y/y strengths in foundry and fabless vendors and q/q strengths in Apple's touch panel/pressure sensor and OEM/EMS vendors.  

On…


Taiwan Semi/Tech 3Q Sales Takeaway as an Early Indicator for Global Tech Earnings

Semiconductor Manufacturing International Corp (SMIC) / Equity Bottom-Up

Semiconductor Manufacturing International Corp (SMIC)

<h2><em>Summary</em></h2><p><em>SMIC reports clear beats on 2Q16 results and 2H16 guidance and outlook against peers and Bloomberg consensus estimates, largely driven by shares gain from system houses, 40nm from fabless customers, and likely customers are asked to place foundry orders domestically in order to boost up China domestic semiconductor production rate to 50% by 2025 from 15-25% now. Although all the numbers look great for SMIC, analysts seem struggling with free cash flow, much higher depreciation cost and</em>…</p>

SummarySMIC reports clear beats on 2Q16 results and 2H16 guidance and outlook against peers and Bloomberg consensus estimates, largely driven by shares gain from system houses, 40nm from fabless customers, and likely customers are asked to place foundry orders domestically in order to boost up China domestic semiconductor production rate to 50% by 2025 from 15-25% now. Although all the numbers look great for SMIC, analysts seem struggling with free cash flow, much higher depreciation cost and…

Taiwan

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.

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Vanguard Intl Semiconductor (5347 TT)

Nikkei Said Apple Cuts Dialog on Power ICs Supply; We Highlighted This in May and More to Come

What's new?Nikkei News reported Apple Inc (AAPL US) is designing its own main power management chips for use in iPhones as early as in 2018,...

Andrew Lu

Emerging Markets: Technical Strategy & Reccommendations

Today’s report provides a top-down synopsis of the technical condition of emerging markets across the globe, and includes a wide variety of...

Vermilion Research

TSMC's 2017 Guidance Confuses Me

Executive summaryDespite slightly weaker 1Q17 sales, TSMC's strong 1Q17 margin guidance should drive Bloomberg consensus estimates to be raised....

Andrew Lu

Taiwan Semi/Tech 3Q Sales Takeaway as an Early Indicator for Global Tech Earnings

Summary Starting October 13, 2016, TSMC will be the first company to report 3Q16 results and provide 4Q16 guidance to kick off semi/tech earnings...

Andrew Lu

SMIC Gains Shares at Expense of Peers

SummarySMIC reports clear beats on 2Q16 results and 2H16 guidance and outlook against peers and Bloomberg consensus estimates, largely driven by...

Andrew Lu

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