Asia and Global Semiconductor and Tech Research

Andrew Lu

Former Head of Asia ex-Japan Semiconductor and TFT-LCD/Touch Research at Barclays and Citi Bank, Former Head of Technology at 國金證券

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

Thematic (Sector/Industry)

China Utilities / Thematic (Sector/Industry)

<ul><li>The proliferation of IoT: With over 25% 5-year CAGR for IoT devices shipment and wafer foundry market but a very fragmented vendors list, we identify legacy foundry, 4G/5G fabless, and legacy OSAT vendors can be benefited the most on this IoT theme. A big cloud data analysis will benefit memory and datacenter vendors. </li><li>Low power wireless connection needed: The IoT device will mostly use a low-power wireless connection like 3G / 4G / 5G, WiFi HaLow, LoRaWAN, Narrow-band IoT, ZigBee, Z-wave, Thread, and Bluetooth smart with a cost less than US$2 per wireless chip and a less data transfer rate of 250kbps.  </li><li>Lots sensors needed: The global sensor market is forecast to grow from $80bn in 2014 to $116bn by 2019. IoT sensors require lower power consumption, smaller in size, and lighter in weight than traditional sensors.</li><li>IoT everywhere: The IoT data analysis will help to boost productivity for applications like smart industrial production, home, hospital, transportation, agriculture, weather /air/water pollution monitoring, security, national defense, infrastructure, logistics, banking insurance, oil, mining, and food production. </li><li>Consolidation or partnership is needed: We believe each IoT application will require relevant hardware, software, and semiconductor vendors to collaborate through cross-industry consolidation or partnership. An example was Qualcomm recently announced the purchase of NXP for US$37.9bn. </li></ul>

The proliferation of IoT: With over 25% 5-year CAGR for IoT devices shipment and wafer foundry market but a very fragmented vendors list, we identify legacy foundry, 4G/5G fabless, and legacy OSAT vendors can be benefited the most on this IoT theme. A big cloud data analysis will benefit memory and datacenter vendors. Low power wireless connection needed: The IoT device will mostly use a low-power wireless connection like 3G / 4G / 5G, WiFi HaLow, LoRaWAN, Narrow-band IoT, ZigBee, Z-wave, Thread, and Bluetooth smart with a cost less than US$2 per wireless chip and a less data transfer rate of 250kbps.  Lots sensors needed: The global sensor market is forecast to grow from $80bn in 2014 to $116bn by 2019. IoT sensors require lower power consumption, smaller in size, and lighter in weight than traditional sensors.IoT everywhere: The IoT data analysis will help to boost productivity for applications like smart industrial production, home, hospital, transportation, agriculture, weather /air/water pollution monitoring, security, national defense, infrastructure, logistics, banking insurance, oil, mining, and food production. Consolidation or partnership is needed: We believe each IoT application will require relevant hardware, software, and semiconductor vendors to collaborate through cross-industry consolidation or partnership. An example was Qualcomm recently announced the purchase of NXP for US$37.9bn. 

Mitsubishi UFJ Financial (MUFG) (8306 JP)

NTT (Nippon Telegraph & Telephone) (9432 JP)

Taiwan Semiconductor (TSMC) - ADR (TSM US)

Mitsubishi UFJ Financial (MUFG) ADR (MUFG US)

Samsung Electronics Pref Shares (005935 KS)

Andrew on Tech: IOT Everywhere