Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

We see VR (Virtual Reality) might be only a niche application to drive semiconductor demand but believe spectacles type Magic Leap’s Photonic Lightfield display, <a href="https://www.smartkarma.com/entities/15273" target="_blank" data-smartkarma-citation="entities:15273">Microsoft Corp (MSFT US)</a>’s HoloLens and smartphone type ( <a href="https://www.smartkarma.com/entities/5415" target="_blank" data-smartkarma-citation="entities:5415">Nintendo Co Ltd (7974 JP)</a>'s Pokemon GO) Augmented Reality (AR) to become much larger markets than VR’s for consumer and semiconductor/software industry by mixing up smartphone and tablet display image, application, and interaction with a real world. We expect AR to have much broader spectrum of applications like 3D gaming, movie/TV, new products demo, Google (<a href="https://www.smartkarma.com/entities/11369" target="_blank" data-smartkarma-citation="entities:11369">Alphabet Inc Cl C (GOOG US)</a>) Goggles on photo/graphic/text searching, Yelp/BuUuk in location based finder, and various applications for education, healthcare, social networking, and even enterprise. We estimate 80-100mn AR spectacles market by 2021 globally with US$100-150 semiconductor values per box in sensors, CPU, HPU, GPU, AI, NAND, and DRAM. These semiconductor contents should account for 10-15% of global foundry/OSAT market size by 2021 by contributing 2-3% sales CAGR for next five years, offsetting slower growth from smartphone, PC, and tablet markets.

We see VR (Virtual Reality) might be only a niche application to drive semiconductor demand but believe spectacles type Magic Leap’s Photonic Lightfield display, Microsoft Corp (MSFT US)’s HoloLens and smartphone type ( Nintendo Co Ltd (7974 JP)'s Pokemon GO) Augmented Reality (AR) to become much larger markets than VR’s for consumer and semiconductor/software industry by mixing up smartphone and tablet display image, application, and interaction with a real world. We expect AR to have much broader spectrum of applications like 3D gaming, movie/TV, new products demo, Google (Alphabet Inc Cl C (GOOG US)) Goggles on photo/graphic/text searching, Yelp/BuUuk in location based finder, and various applications for education, healthcare, social networking, and even enterprise. We estimate 80-100mn AR spectacles market by 2021 globally with US$100-150 semiconductor values per box in sensors, CPU, HPU, GPU, AI, NAND, and DRAM. These semiconductor contents should account for 10-15% of global foundry/OSAT market size by 2021 by contributing 2-3% sales CAGR for next five years, offsetting slower growth from smartphone, PC, and tablet markets.

Augmented Reality as New Driver for Semis?

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways suggest strengths in foundry, fabless, and display vendors to drive Taiwan semi sales recovery of 17% y/y in June and 8 out 12 vendors reported a beat on 2Q16 sales guidance. Despite the strengths, we saw weaknesses in power amplifier, touch panel, and solar vendors and our semi leading indicator fell to 8% in June 2016 from this year peak of 31% in…

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways suggest strengths in foundry, fabless, and display vendors to drive Taiwan semi sales recovery of 17% y/y in June and 8 out 12 vendors reported a beat on 2Q16 sales guidance. Despite the strengths, we saw weaknesses in power amplifier, touch panel, and solar vendors and our semi leading indicator fell to 8% in June 2016 from this year peak of 31% in…

Taiwan

Delta Electronics Inc. manufactures power supplies and video display products. The Company's products include switching power supplies, telecom power systems, uninterrupted power supply (UPS), variable speed alternating current (AC) monitor drives, high resolution color monitors, and projectors.  Delta also manufactures magnetic and networking components.

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Delta Electronics (2308 TT)

Augmented Reality as New Driver for Semis?

We see VR (Virtual Reality) might be only a niche application to drive semiconductor demand but believe spectacles type Magic Leap’s Photonic...

Andrew Lu

Points from Taiwan Semi/Tech 2Q Sales

Starting July 14, 2016, TSMC will first report 2Q16 results and provide 3Q16 guidance to kick off semi/tech earnings season. Our report takeaways...

Andrew Lu

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