Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

Zhen Ding Technology Holding / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhen-ding-technology-holding-ltd" target="_blank" data-smartkarma-citation="entities:16830:1" rel="noopener">Zhen Ding Technology Holding (4958 TT)</a> is leveraging its full-stack PCB and IC substrate portfolio to position itself as a critical enabler of AI hardware across cloud, channel, and edge applications. </li>
<li>AI-Linked hardware is expected to account for over 70% of Zhen Ding’s revenue in 2025, up sharply from 45% in 2024 and just 8% in 2023.</li>
<li>Zhen Ding shares remain substantially below their 52-week highs; we see the company well-placed in terms of long-term drivers. Well placed for an upcoming AI robotics boom.</li>
</ul>



Zhen Ding Technology Holding (4958 TT) is leveraging its full-stack PCB and IC substrate portfolio to position itself as a critical enabler of AI hardware across cloud, channel, and edge applications. 
AI-Linked hardware is expected to account for over 70% of Zhen Ding’s revenue in 2025, up sharply from 45% in 2024 and just 8% in 2023.
Zhen Ding shares remain substantially below their 52-week highs; we see the company well-placed in terms of long-term drivers. Well placed for an upcoming AI robotics boom.


TechChain Insights: Zhen Ding - How Next Generation PCBs/Substrates Will Be Critical for AI Devices

Technology / Semiconductor / Internet Research

Nicolas Baratte

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>Power GaN coming oversupply, an illustration. The fear is a repeat of the SiC situation (large capacity built in China, Wolfspeed filling for bankruptcy protection) </li>
<li>Samsung delays A14 to focus on 3-2nm. Samsung and Intel have the same problem: yields are too low to attract customers.  </li>
<li>Chinese GPU are coming – or IPO are coming? Moore Threads and MetaX approved to list in Shanghai. Tiny revenues, lots of R&amp;D. Biren Technology expected to file in HK.</li>
</ul>


Power GaN coming oversupply, an illustration. The fear is a repeat of the SiC situation (large capacity built in China, Wolfspeed filling for bankruptcy protection) 
Samsung delays A14 to focus on 3-2nm. Samsung and Intel have the same problem: yields are too low to attract customers.  
Chinese GPU are coming – or IPO are coming? Moore Threads and MetaX approved to list in Shanghai. Tiny revenues, lots of R&amp;D. Biren Technology expected to file in HK.


Semi News: Power GaN, Samsung and Intel’s Foundry Margins (And Wafer Price), Chinese GPU IPO

United Microelectronics Corp / Equity Bottom-Up

<ul>
<li>UMC’s renewed push into 6nm, paired with Intel’s strategic overhaul under new CEO Lip-Bu Tan, raises the likelihood of an Intel equity stake in UMC.</li>
<li>We maintain our Structural Long view on UMC and reiterate our original thesis: a deeper partnership via a stake from Intel would be transformative.</li>
<li>At 12.5x trailing PER with a net cash position, UMC remains attractively valued as a strategic asset -- especially if can essentially have its own 'Group' advanced fabs with Intel.</li>
</ul>


UMC’s renewed push into 6nm, paired with Intel’s strategic overhaul under new CEO Lip-Bu Tan, raises the likelihood of an Intel equity stake in UMC.
We maintain our Structural Long view on UMC and reiterate our original thesis: a deeper partnership via a stake from Intel would be transformative.
At 12.5x trailing PER with a net cash position, UMC remains attractively valued as a strategic asset -- especially if can essentially have its own 'Group' advanced fabs with Intel.


Our Thesis: Intel Should Take a Stake in UMC -- New Signals Reinforce the Case

<ul>
<li>Tax credit increase from 25% to 35% (portion of investment deducted from taxable income), which becomes as impactful in $ as the direct subsidies or about $40bn. </li>
<li>The US is working hard to make Semi investments more attractive. Subsidies, loans and tax credits altogether now approach $150bn. </li>
<li>That could mitigate a little bit of TSMC price increase in Arizona. But it’s not massive. The impact of tax credits increase from 2% of revenue to 3%. </li>
</ul>


Tax credit increase from 25% to 35% (portion of investment deducted from taxable income), which becomes as impactful in $ as the direct subsidies or about $40bn. 
The US is working hard to make Semi investments more attractive. Subsidies, loans and tax credits altogether now approach $150bn. 
That could mitigate a little bit of TSMC price increase in Arizona. But it’s not massive. The impact of tax credits increase from 2% of revenue to 3%. 


US Congress’s Gift to Semiconductor Manufacturers: 35% Tax Credit on Investments

Taiwan Tech Focused Senior Analyst

Patrick Liao

TSMC (Taiwan Semiconductor Manufacturing) - ADR / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>Japan’s <a href="https://www.smartkarma.com/entities/fujitsu-ltd" target="_blank" data-smartkarma-citation="entities:16968:1" rel="noopener">Fujitsu Ltd (6702 JP)</a> is currently developing a 2nm CPU named “MONAKA” (link). The CPU is planned to be manufactured by <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-sp-adr" target="_blank" data-smartkarma-citation="entities:8587:1" rel="noopener">Taiwan Semiconductor (TSMC) - ADR (TSM US)</a>.  </li>
<li>Rapidus has to deal with high technical barriers, tight timelines, heavy R&amp;D costs, market and profitability challenges.</li>
<li>Talent shortage in Japan: A lingering pain for the Semiconductor industry</li>
</ul>


Japan’s Fujitsu Ltd (6702 JP) is currently developing a 2nm CPU named “MONAKA” (link). The CPU is planned to be manufactured by Taiwan Semiconductor (TSMC) - ADR (TSM US).  
Rapidus has to deal with high technical barriers, tight timelines, heavy R&amp;D costs, market and profitability challenges.
Talent shortage in Japan: A lingering pain for the Semiconductor industry


TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC's 2nm Market? We Think It's Too Early to Say (II)

United States

Intel Corporation designs, manufactures, and sells computer components and related products.  The Company's major products include microprocessors, chipsets, embedded processors and microcontrollers, flash memory products, graphics products, network and communications products, systems management software, conferencing products, and digital imaging products.

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Intel Corp (INTC US)

TechChain Insights: Zhen Ding - How Next Generation PCBs/Substrates Will Be Critical for AI Devices

Zhen Ding is poised to become a key leader in the backbone of AI hardware with a strong portfolio with strong growth expected in the coming years.

Vincent Fernando, CFA

Semi News: Power GaN, Samsung and Intel’s Foundry Margins (And Wafer Price), Chinese GPU IPO

Potential oversupply of Power GaN, similar to SiC situation. Samsung delays A14 to focus on 3-2nm due to low yields. Chinese GPU companies...

Nicolas Baratte

Our Thesis: Intel Should Take a Stake in UMC -- New Signals Reinforce the Case

UMC's partnership with Intel, including a possible equity stake, could be transformative and strategically valuable for both companies. Latest...

Vincent Fernando, CFA

US Congress’s Gift to Semiconductor Manufacturers: 35% Tax Credit on Investments

US increases tax credit for semiconductor investments from 25% to 35%, as impactful as direct subsidies at about $40bn, part of $150bn in total...

Nicolas Baratte

TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC's 2nm Market? We Think It's Too Early to Say (II)

Fujitsu developing 2nm CPU "MONAKA" with TSMC. Rapidus is facing technical barriers, talent shortage in Japan's Semiconductor industry.

Patrick Liao

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52-week Range

Market Cap (USDm)

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TechChain Insights: Zhen Ding - How Next Generation PCBs/Substrates Will Be Critical for AI Devices

​Zhen Ding is poised to become a key leader in the backbone of AI hardware with a strong portfolio with strong growth expected in the coming years.

Vincent Fernando, CFA

Semi News: Power GaN, Samsung and Intel’s Foundry Margins (And Wafer Price), Chinese GPU IPO

​Potential oversupply of Power GaN, similar to SiC situation. Samsung delays A14 to focus on 3-2nm due to low yields. Chinese GPU companies...

Nicolas Baratte

Our Thesis: Intel Should Take a Stake in UMC -- New Signals Reinforce the Case

​UMC's partnership with Intel, including a possible equity stake, could be transformative and strategically valuable for both companies. Latest...

Vincent Fernando, CFA

US Congress’s Gift to Semiconductor Manufacturers: 35% Tax Credit on Investments

​US increases tax credit for semiconductor investments from 25% to 35%, as impactful as direct subsidies at about $40bn, part of $150bn in total...

Nicolas Baratte

TSMC (2330.TT; TSM.US): Will Rapidus Threaten TSMC's 2nm Market? We Think It's Too Early to Say (II)

​Fujitsu developing 2nm CPU "MONAKA" with TSMC. Rapidus is facing technical barriers, talent shortage in Japan's Semiconductor industry.

Patrick Liao

Zhen Ding is poised to become a key leader in the backbone of AI hardware with a strong portfolio with strong growth expected in the coming years.

Potential oversupply of Power GaN, similar to SiC situation. Samsung delays A14 to focus on 3-2nm due to low yields. Chinese GPU companies...

UMC's partnership with Intel, including a possible equity stake, could be transformative and strategically valuable for both companies. Latest...

US increases tax credit for semiconductor investments from 25% to 35%, as impactful as direct subsidies at about $40bn, part of $150bn in total...

Fujitsu developing 2nm CPU "MONAKA" with TSMC. Rapidus is facing technical barriers, talent shortage in Japan's Semiconductor industry.