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

Equity Bottom-Up

An interview conducted by EE Times China with MediaTek Co-COO Jeffrey Ju has revealed the following points, which we see as possible multi-year trend affecting smartphone supply chain vendors. We summarize four takeaways: <ul><li>China and likely for other emerging markets are migrating to open market (no subsidies from operator) from operator market for smartphone demand. This should be bad for high end operator brand name vendors (&gt;US$400 per smartphone) like Apple, Samsung, Huawei, and their supply chain vendors but good for low price and high performance brands OPPO, VIVO, and Gionee in China, Micromax in India (US$200-400), and their supply chain vendors;</li><li>The smartphone SoC shortage at open market in 2H16 should mitigate the upcoming inventory adjustment in 4Q16-1Q17 and benefit supply chain vendors like MediaTek and Qualcomm in smartphone SoC, TSMC in foundry, and leading AMOLED vendor like Samsung;</li><li>We see that 10nm smartphone SoC competition between Qualcomm and MediaTek starting 1Q17 are largely depending on differences in yield rate, production cost, capacity between Samsung foundry and TSMC. It is very critical for their foundry customers if either one is running ahead of another by a large degree;</li><li>Power amplifier (PA) module seems to be a major bottle neck and high cost component for smartphone SoC vendors migrating to 5G standard.</li></ul>

An interview conducted by EE Times China with MediaTek Co-COO Jeffrey Ju has revealed the following points, which we see as possible multi-year trend affecting smartphone supply chain vendors. We summarize four takeaways: China and likely for other emerging markets are migrating to open market (no subsidies from operator) from operator market for smartphone demand. This should be bad for high end operator brand name vendors (&gt;US$400 per smartphone) like Apple, Samsung, Huawei, and their supply chain vendors but good for low price and high performance brands OPPO, VIVO, and Gionee in China, Micromax in India (US$200-400), and their supply chain vendors;The smartphone SoC shortage at open market in 2H16 should mitigate the upcoming inventory adjustment in 4Q16-1Q17 and benefit supply chain vendors like MediaTek and Qualcomm in smartphone SoC, TSMC in foundry, and leading AMOLED vendor like Samsung;We see that 10nm smartphone SoC competition between Qualcomm and MediaTek starting 1Q17 are largely depending on differences in yield rate, production cost, capacity between Samsung foundry and TSMC. It is very critical for their foundry customers if either one is running ahead of another by a large degree;Power amplifier (PA) module seems to be a major bottle neck and high cost component for smartphone SoC vendors migrating to 5G standard.

Hurting Apple and Huawei if Open Market for Smartphone Is Emerging

Mediatek Inc

Hurting Apple and Huawei if Open Market for Smartphone Is Emerging