This weekly newsletter pulls together summaries of the top ten most-read Insights across Tech Hardware and Semiconductor on Smartkarma.
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1. Micron. So Long Legacy & Hello There HBM, Data Center & Leading Edge
- Micron’s Q1F25 met expectations on key metrics but the ~9% downward guidance for the current quarter sent the share price into a tailspin
- Consumer-Related inventory issues and China competition were highlighted as the root causes for the surprise downward guide
- Micron is ok to cede legacy products to China competition and focus instead on the much more lucrative leading edge products, especially HBM. The transition could be rocky however
2. Memory Monitor: The Emerging Mass-Market Edge AI Need for Mobiles; Long Micron Vs. Short Nanya Tech
- Micron’s Latest Outlook Disappoints & Shares Fall; Decoupling Trade Between SK Hynix & Nanya Tech Has Worked However
- Smartphone AI Insights — On-Device Local Search & Context-Aware Interfaces Emerging as Key Local AI Needs
- Conclusion — Consider Swapping In MICRON as the Long Side of the Memory Decoupling Trade
3. Nvidia (NVDA.US): To Establish Offshore Headquarter in Taiwan.
- NVIDIA Corp (NVDA US) CEO Mr. Jensen Huang announced plans to establish an offshore headquarters in Taipei during his visit this June.
- From a geopolitical perspective, Taiwan is one of the focal points where the U.S. and China could potentially be in conflict.
- Focusing on AI, NVIDIA Corp (NVDA US) is currently attracting significant attention, but the decision to establish an offshore headquarters in Taipei is raising curiosity.
4. Hamamatsu Photonics (6965 JP): Rebound Ahead
- Profits and share price stabilizing after steep declines, although margins still under pressure from rising R&D and depreciation, and costs associated with recent acquisitions.
- Sales of medical equipment to recover from post-COVID decline. Semiconductor equipment driven by advanced logic and high-bandwidth memory. Lasers to become fourth major product division.
- Buy for the long-term. Risks include Trump tariffs, weak European economies, emergence of Chinese competition.
5. United Microelectronics: Key QCOM Advanced Packaging Win Signals Client Shift Away from TSMC
- UMC Secures Key Qualcomm Advanced Packaging Order; Breakthrough in High-Growth Chip Supply Chain Segment
- Why TSMC Remains Critical for QCOM Manufacturing, Yet UMC Provides a Strong Strategic Counterbalance
- UMC Must Prove Itself, but QCOM Win Sparks Optimism for Sentiment and Outlook Recovery — Maintain TSMC as Structural Long & Rate UMC as Outperform
6. The US-China Trade War Is Likely to Split the Semiconductor Industry into Two Groups.
- The US-China trade war has shaped a new trend: Advanced and Matured Technologies led by Taiwan Semiconductor (TSMC) – ADR (TSM US) and Semiconductor Manufacturing International Corp (SMIC) (981 HK) respectively.
- Notably, construction of semiconductor fabs in Singapore seems to be of lesser concern at the moment.
- The emergence of AI offers new hope, not only for advanced semiconductor technology but also for lagging technologies.
7. Taiwan Tech Weekly: Rapidus’s Challenge Vs. TSMC for 2nm; Hon Hai Hunting for Automaker Acquisition
- Rapidus vs. TSMC: Can Japan’s Newcomer Compete in the 2nm Race?
- Memory Monitor: The Emerging Mass-Market Edge AI Need for Mobiles; Long Micron Vs. Short Nanya Tech
- Hon Hai Pauses Nissan Pursuit Amid Honda Talks — A Japanese Savior for Nissan is Likely But This Confirms Hon Hai’s EV Ambitions Remain High
8. Taiwan Dual-Listings Monitor: TSMC ADR Spread Near All-Time Highs; UMC at Upper End of Range
- TSMC: +25.4% Premium; At Historical Highs, Good Level to Short the Spread
- UMC: +2.1% Premium; Upper Level of Historical Range, Short Level
- ASE: +5.4% Premium; Near-Term High However Likely Best to Wait for Higher Levels
9. Nidec (6594 JP): Acquisition of Makino Milling Would Add Value
- Nidec has announced its intention to acquire Makino Milling Machine (6135 JP) for ¥11,000 per share, a 42% premium over Thursday’s closing price.
- The stock market liked the idea. Nidec’s share price rose 4% on Friday. Makino’s jumped 19%. The pice looks high, but at 17.7x Makino’s EPS guidance, it is not unreasonable.
- The acquisition would be accretive to earnings and bring greater scale and competitiveness to Nidec’s machine tool business. It should support our Buy recommendation.
10. SK Hynix(000660.KS): Insisting on HBM Technology and Continuing to Surpass Samsung in Net Earnings
- SK Hynix (000660 KS)‘s key turning point is its dedication to developing High Bandwidth Memory (HBM) technology, which has finally paid off.
- In the third quarter of 2024, SK Hynix (000660 KS) continued to surpass Samsung Electronics (005930 KS) net earnings based on their financial results.
- Samsung Electronics (005930 KS) is reportedly exploring partnership opportunities with Taiwan Semiconductor (TSMC) – ADR (TSM US) in the realm of HBM, aiming to strengthen its ties with NVIDIA.
