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

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

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>The real point of Reuters’ article on Intel CEO “new” Foundry strategy is, imo, to pre-announce the possibility of a very large write off </li>
<li>TSMC discontinues GaN doesn’t matter, it’s not even 1% of revenue. 1) Auto demand is slow, GaN is lower margins, lot of competition  2) management has better things to do </li>
<li>UMC 6nm rumor, maybe yes but most likely with Intel’s manufacturing after 2030. UMC and Intel first start with 12nm in 2027-28.</li>
</ul>


The real point of Reuters’ article on Intel CEO “new” Foundry strategy is, imo, to pre-announce the possibility of a very large write off 
TSMC discontinues GaN doesn’t matter, it’s not even 1% of revenue. 1) Auto demand is slow, GaN is lower margins, lot of competition  2) management has better things to do 
UMC 6nm rumor, maybe yes but most likely with Intel’s manufacturing after 2030. UMC and Intel first start with 12nm in 2027-28.


Intel 18A Not Ready for Foundry (Preparing for Bad News?), TSMC Exit GaN (Doesn’t Matter), UMC 6nm

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of Jun 27th. The aggregated holding was USD1,126.4bn.</li>
<li>We estimate that foreign flows to be inflows of USD16,805mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Jinan Acetate Chemical, TSMC, Elite Material, Evergreen Marine, UMC, China Development Financial, Cathay Financial, Asustek Computer, Quanta Computer, Uni-President Enterprises.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Jun 27th. The aggregated holding was USD1,126.4bn.
We estimate that foreign flows to be inflows of USD16,805mln. We tabulate the league tables for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Jinan Acetate Chemical, TSMC, Elite Material, Evergreen Marine, UMC, China Development Financial, Cathay Financial, Asustek Computer, Quanta Computer, Uni-President Enterprises.


TWSE Foreign Holding Weekly (Jun 27th): Jinan Acetate Chemical, TSMC, Elite Material

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of Jun 27th. The aggregated short interest was USD26.4bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Hon Hai Precision, Cathay Financial, Fubon Financial, Ase Industrial, Elite Material, Wistron, Wiwynn.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Jun 27th. The aggregated short interest was USD26.4bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Hon Hai Precision, Cathay Financial, Fubon Financial, Ase Industrial, Elite Material, Wistron, Wiwynn.


TWSE Short Interest Weekly (Jun 27th): Hon Hai Precision, Cathay Financial, Fubon Financial

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

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>TSMC: +23.4% Premium; Consider Shorting ADR Spread at Current Level; Record Short Interest in Local</li>
<li>UMC: +1.1% Premium; Wait for More Extreme Premium to Short</li>
<li>ASE: +2.9% Premium; Near Level to Go Long the ADR Spread</li>
</ul>


TSMC: +23.4% Premium; Consider Shorting ADR Spread at Current Level; Record Short Interest in Local
UMC: +1.1% Premium; Wait for More Extreme Premium to Short
ASE: +2.9% Premium; Near Level to Go Long the ADR Spread


Taiwan Dual-Listings Monitor: TSMC High Premium Persisting, Record Short Interest in Local

Taiwan

United Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs) and related electronic products.  The Company's main products are consumer electronic ICs, memory ICs, personal computer peripheral ICs, and communication ICs.

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United Microelectronics Corp (2303 TT)

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

Intel 18A Not Ready for Foundry (Preparing for Bad News?), TSMC Exit GaN (Doesn’t Matter), UMC 6nm

Reuters' on Intel "new" Foundry strategy may be hinting at a potential write off in the future. TSMC discontinuing GaN insignificant due to low...

Nicolas Baratte

TWSE Foreign Holding Weekly (Jun 27th): Jinan Acetate Chemical, TSMC, Elite Material

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in Jinan Acetate Chemical (4763 TT), TSMC (2330...

Ke Yan, CFA, FRM

TWSE Short Interest Weekly (Jun 27th): Hon Hai Precision, Cathay Financial, Fubon Financial

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Hon Hai Precision (2317 TT), Cathay Financial...

Ke Yan, CFA, FRM

Taiwan Dual-Listings Monitor: TSMC High Premium Persisting, Record Short Interest in Local

We analyze the premium and discount levels of dual-listed Taiwan companies, suggesting potential spread trading levels based on historical trends.

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Intel 18A Not Ready for Foundry (Preparing for Bad News?), TSMC Exit GaN (Doesn’t Matter), UMC 6nm

​Reuters' on Intel "new" Foundry strategy may be hinting at a potential write off in the future. TSMC discontinuing GaN insignificant due to low...

Nicolas Baratte

TWSE Foreign Holding Weekly (Jun 27th): Jinan Acetate Chemical, TSMC, Elite Material

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in Jinan Acetate Chemical (4763 TT), TSMC (2330...

Ke Yan, CFA, FRM

TWSE Short Interest Weekly (Jun 27th): Hon Hai Precision, Cathay Financial, Fubon Financial

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Hon Hai Precision (2317 TT), Cathay Financial...

Ke Yan, CFA, FRM

Taiwan Dual-Listings Monitor: TSMC High Premium Persisting, Record Short Interest in Local

We analyze the premium and discount levels of dual-listed Taiwan companies, suggesting potential spread trading levels based on historical trends.

Vincent Fernando, CFA

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

Reuters' on Intel "new" Foundry strategy may be hinting at a potential write off in the future. TSMC discontinuing GaN insignificant due to low...