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. TSMC’s June Revenue Declined 9.5% MoM. Should We Be Worried?
- June 2024 revenues of NT$207.87 billion, a decrease of 9.5% MoM but an increase of 32.9% YoY
- Q224 revenue of US$20.9 billion, $457 million above the high end, up 10.5% QoQ and up 33.7% YoY. It was also TSMC’s highest revenue quarter ever
- At NT$1,266,154 (around US$39 billion), TSMC’s YTD revenues are up 28% YoY, well in line with the company’s forecast for a >20% YoY increase in 2024.
2. Taiwan Tech Weekly: TSMC Sales Beat High Expectations; Wiwynn GDR Offering; IPhone 17 to Use 2nm
- TSMC June Sales Surge Higher Than Expectations; Apple Will Be Use TSMC’s 2nm Node for Next Year’s iPhone 17
- Wiwynn GDR Offering – US$1.45bn Dilutive Offering, but Momentum Has Been Very Strong
- Silergy (6415.TT): Trial-Run with Vanguard, and Recent Stock Drops Represent an Entry Opportunity.
3. Taiwan Dual-Listings Monitor: TSMC Spread on Brink of Falling to Past Levels; UMC Extreme Premium
- TSMC: +15.1% Premium; Will It Break Down to Lower Past Trading Levels?
- UMC: +2.4% Premium; Can Consider Shorting This Historically High Level
- ChipMOS: -3.1% Discount; Long The Spread Given Historically Extreme Discount
4. TSMC (2330.TT; TSM.US): The 25% YoY Growth Rate Will Be Expected in 2024.
- Taiwan Semiconductor (TSMC) – ADR (TSM US) could reach a growth rate of 25% YoY this year, with a very promising outlook for 2025.
- Artificial Intelligence (AI) remains the primary focus, with plans to continue expanding capacity in 2H24 and 2025.
- The demand from Apple (AAPL US) is expected to drive higher growth in 2H24.
5. An Interview with Wes Cummins, CEO of Applied Digital
- Doug O’Laughlin: Today, on Fabricated Knowledge, I have the privilege of having Wes from Applied Digital on to talk about Applied Digital.
- Today, we’re gonna talk about the change in his business model. The company is experiencing a lot of changes, and there are a lot of new things in the pipeline.
- And so I just wanted to sit him down and have an opportunity to chat about that.
6. Vanguard (5347.TT): The Utilization to Improve over 70% in 3Q24.
- We expect Vanguard’s utilization to improve from around 65% in 2Q24 to over 70% in 3Q24.
- Qualcomm Inc (QCOM US) and Monolithic Power Systems, Inc (MPWR US) are gradually increasing demand volume in 2Q24 and 3Q24.
- Currently, Vanguard is experiencing a correction from above NTD$142 on July 2nd.
7. Automotive: Rev Your Engines
- I’m calling a very definitive bottom in Automotive semiconductor stocks. I’ve been mixed on automotive for quite some time, and as recently as April, I was bearish.
- It all started when China decided to dump cheap EVs globally, which made me extremely concerned about Western automotive companies.
- Hell, I’ve been bearish on WOLF since March of 2023 and wrote not one but two notes about how Silicon Carbide looks like it’s in a rough spot.
8. Nanya Technology: Latest Results & Guidance Make 2024E Consensus Hard to Achieve; Underperform
- Nanya Tech reported a continued net loss in its latest 2Q24 results; the company’s gross margin has rebounded into positive territory but only marginally so.
- Server end demand strong, however PC and mobile remain flattish; the company expects some improvemnt in PC and mobile driven by AI trends but conservative on the impact for 2024E.
- We believe the Street may need to reduce their 2024E estimates; margin rebound is too small and guidance remains very conservative. We see near-term downside risk for Nanya Tech shares.
