Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

SMIC (0981.HK): Raising CapEx to $5bn in 2022. Exciting News, or Fierce Competition Ahead?

SMIC (981.HK): Local Demand Is Very Strong, but EUV Embargo Is Constrained Technical Growth Still.

SMIC (981.HK): 2Q22 Preview- We Estimate Around 5% Growth Could Be the Case

SMIC Placement: Balance Sheet Improvement, What's Next

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Semiconductor Manufacturing International Corp (SMIC) / Equity Bottom-Up

Semiconductor Manufacturing International Corp (SMIC) (981 HK)

Semiconductor Manufacturing International Corp (SMIC)

SMIC's share price jumped 6% to HK$23.60 on Friday, Sept. 10,  signaling that concerns over the cost of the new factory announced a week ago and other risks had been discounted. Over the previous month, the shares had declined by 19%.On Sept. 3, the company announced plans to build a new factory in Shanghai to produce semiconductors at the 28-nanometer node. This technology is suitable for automotive ICs, which are currently in short supply.Given common concerns over the semiconductor shortage and President Biden's reportedly conciliatory call to President Xi, the risk of U.S. sanctions seems minimal.Buy in anticipation of a near doubling of production capacity by 2024.

SMIC's share price jumped 6% to HK$23.60 on Friday, Sept. 10,  signaling that concerns over the cost of the new factory announced a week ago and other risks had been discounted. Over the previous month, the shares had declined by 19%.On Sept. 3, the company announced plans to build a new factory in Shanghai to produce semiconductors at the 28-nanometer node. This technology is suitable for automotive ICs, which are currently in short supply.Given common concerns over the semiconductor shortage and President Biden's reportedly conciliatory call to President Xi, the risk of U.S. sanctions seems minimal.Buy in anticipation of a near doubling of production capacity by 2024.

SMIC (SEHK: 00981; SSE Star Market: 688981): Concerns in the Price, Buy for Long-Term Growth