Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC) – ADR, A10 Networks, Datatec Limited and more

• It is expected that TSMC will have full capacity utilization of 3nm and 5nm technology nodes starting from 1Q24F.
• Regarding 3nm technology, the EUV mask layer will be reduced.
• The total number of iPhone 15 units sold in 2023F is expected over 85 million.

• ATEN continues to experience challenges with order timing from some of its largest customers. ATEN lowered Q3 revenue forecast after North American service providers delayed their purchases in the quarter
• ATEN has spent the entire year trying to add more enterprise customers to offset this volatility and, while successful, it was not enough in the third quarter.
• ATEN is projecting third quarter revenue between $56.5 million and $58.5 million compared to our estimate of $75.3 million.

In its H124 trading update, Datatec noted that all divisions reported improved performance versus H123. Westcon’s performance was described as excellent, with a strong performance from Logicalis International and a much-improved performance from Logicalis Latin America, although macroeconomic pressures remain in the region. The company continues to see good demand for its solutions and services and is actively managing supply chain challenges to service customers. We maintain our forecasts pending interim results due on 23 October.