Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a>’s investment is focused on joint AI development.   </li>
<li>
<a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel Corp (INTC US)</a> may seek to invite <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> to join its investment initiative.</li>
<li>Meanwhile, <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel Corp (INTC US)</a>’s stock price has risen about 50.2% from its recent low. </li>
</ul>



NVIDIA Corp (NVDA US)’s investment is focused on joint AI development.   

Intel Corp (INTC US) may seek to invite Taiwan Semiconductor (TSMC) - ADR (TSM US) to join its investment initiative.
Meanwhile, Intel Corp (INTC US)’s stock price has risen about 50.2% from its recent low. 


Intel (INTC.US): Seeking Investment from TSMC?

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>NXP Semiconductors N.V. has reported its financial performance for the second quarter of 2025, providing insights into both the challenges and opportunities it faces in the semiconductor market.</li><li>NXP's revenue for the quarter was $2.93 billion, marginally above the midpoint of its prior guidance but down 6% compared to the same period last year.</li><li>The company noted a non-GAAP operating margin of 32%, which, while above the midpoint of their guidance, reflects a decrease compared to the previous year.</li></ul>

NXP Semiconductors N.V. has reported its financial performance for the second quarter of 2025, providing insights into both the challenges and opportunities it faces in the semiconductor market.NXP's revenue for the quarter was $2.93 billion, marginally above the midpoint of its prior guidance but down 6% compared to the same period last year.The company noted a non-GAAP operating margin of 32%, which, while above the midpoint of their guidance, reflects a decrease compared to the previous year.

NXP Semiconductor: Initiation of Coverage- Igniting An Auto Revolution with Game-Changing Software-Defined Vehicle Tech!

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>Bold statement by Management: early stage of cyclical recovery, new upcycle beginning. 2Q result and 3Q guidance show a smaller pace of YoY decline, converging slowly to 0. </li>
<li>Other than an increasing order book, Management not forthcoming on details. In Automotive NXP has outperformed its peers during this latest downcycle with a smaller pace of decline.</li>
<li>Stock valuations at 20x 2025 EPS, 16.8x 2026 EPS, which are almost +1 standard deviation above average PEx. No room for error here.</li>
</ul>


Bold statement by Management: early stage of cyclical recovery, new upcycle beginning. 2Q result and 3Q guidance show a smaller pace of YoY decline, converging slowly to 0. 
Other than an increasing order book, Management not forthcoming on details. In Automotive NXP has outperformed its peers during this latest downcycle with a smaller pace of decline.
Stock valuations at 20x 2025 EPS, 16.8x 2026 EPS, which are almost +1 standard deviation above average PEx. No room for error here.


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

Himax Technologies Inc Adr / Equity Bottom-Up

<ul>
<li>
China’s push for 100% auto chip localization by 2027 poses risk to Himax, which derived 75% of 1Q25 revenue from China. We engaged the company for comments./</li>
<li>
Himax may avoid direct targeting due to Taiwanese roots and local production via CN Nexchip, and we believe is less vulnerable than Western firms like NXP, TI, and Wolfspeed.</li>
<li>
Copackaged Optics (CPO) industry momentum continues to build as Himax continues role alongside TSMC and FOCI; industry moves from Nvidia, AMD validate long-term optical interconnect opportunity Himax is positioned for.</li>
</ul>



China’s push for 100% auto chip localization by 2027 poses risk to Himax, which derived 75% of 1Q25 revenue from China. We engaged the company for comments./

Himax may avoid direct targeting due to Taiwanese roots and local production via CN Nexchip, and we believe is less vulnerable than Western firms like NXP, TI, and Wolfspeed.

Copackaged Optics (CPO) industry momentum continues to build as Himax continues role alongside TSMC and FOCI; industry moves from Nvidia, AMD validate long-term optical interconnect opportunity Himax is positioned for.


TechChain Insights: Himax Threatened by China Auto Chip Push? CPO Tech with TSMC Remains Bright Spot

Vanguard Intl Semiconductor / Equity Bottom-Up

<ul>
<li>We assume that <a href="https://www.smartkarma.com/entities/vanguard-international-semi" target="_blank" data-smartkarma-citation="entities:16011:1" rel="noopener">Vanguard Intl Semiconductor (5347 TT)</a> will see an upside in its 2Q25 outlook by a few percentage points.</li>
<li>The DDIC (Display Driver IC) segment appears relatively flat, while PMIC (Power Management IC) may experience slight growth.</li>
<li>
<a href="https://www.smartkarma.com/entities/vanguard-international-semi" target="_blank" data-smartkarma-citation="entities:16011:1" rel="noopener">Vanguard Intl Semiconductor (5347 TT)</a> and other Taiwanese semiconductor Fabs are not subject to the 125% tariff imposed by Beijing on U.S. products. </li>
</ul>


We assume that Vanguard Intl Semiconductor (5347 TT) will see an upside in its 2Q25 outlook by a few percentage points.
The DDIC (Display Driver IC) segment appears relatively flat, while PMIC (Power Management IC) may experience slight growth.

Vanguard Intl Semiconductor (5347 TT) and other Taiwanese semiconductor Fabs are not subject to the 125% tariff imposed by Beijing on U.S. products. 


Vanguard (5347.TT): 2Q25 Outlook Slightly Upbeat; US Tariffs Remain a Negative Factor.

Netherlands

NXP Semiconductors NV operates as a global semiconductor company. The Company designs semiconductors and software for mobile communications, consumer electronics, security applications, in-car entertainment, and networking.  NXP offers its products to the automotive, identification, wireless infrastructure, lighting, mobile, and computing applications.

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Nxp Semiconductors Nv (NXPI US)

Intel (INTC.US): Seeking Investment from TSMC?

NVIDIA focuses on joint AI development, Intel may invite TSMC to join investment initiative, Intel's stock price rises 50%. What's next?

Patrick Liao

NXP Semiconductor: Initiation of Coverage- Igniting An Auto Revolution with Game-Changing Software-Defined Vehicle Tech!

NXP Semiconductors N.V. has reported its financial performance for the second quarter of 2025, providing insights into both the challenges and...

Baptista Research

NXP 2Q25: Slowly Getting Out of the Hole

Management predicts the start of a new upcycle with improving financials, but stock valuations are high with little margin for error.

Nicolas Baratte

TechChain Insights: Himax Threatened by China Auto Chip Push? CPO Tech with TSMC Remains Bright Spot

China's push for auto chip localization poses some risk to Himax, but its local production may offer some protection. Himax's role in Copackaged...

Vincent Fernando, CFA

Vanguard (5347.TT): 2Q25 Outlook Slightly Upbeat; US Tariffs Remain a Negative Factor.

Vanguard Intl Semiconductor expected to see slight upside in 2Q25 outlook, with PMIC segment showing potential growth and no impact from Beijing's...

Patrick Liao

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Intel (INTC.US): Seeking Investment from TSMC?

​NVIDIA focuses on joint AI development, Intel may invite TSMC to join investment initiative, Intel's stock price rises 50%. What's next?

Patrick Liao

NXP Semiconductor: Initiation of Coverage- Igniting An Auto Revolution with Game-Changing Software-Defined Vehicle Tech!

NXP Semiconductors N.V. has reported its financial performance for the second quarter of 2025, providing insights into both the challenges and...

Baptista Research

NXP 2Q25: Slowly Getting Out of the Hole

​Management predicts the start of a new upcycle with improving financials, but stock valuations are high with little margin for error.

Nicolas Baratte

TechChain Insights: Himax Threatened by China Auto Chip Push? CPO Tech with TSMC Remains Bright Spot

​China's push for auto chip localization poses some risk to Himax, but its local production may offer some protection. Himax's role in Copackaged...

Vincent Fernando, CFA

Vanguard (5347.TT): 2Q25 Outlook Slightly Upbeat; US Tariffs Remain a Negative Factor.

​Vanguard Intl Semiconductor expected to see slight upside in 2Q25 outlook, with PMIC segment showing potential growth and no impact from Beijing's...

Patrick Liao

NVIDIA focuses on joint AI development, Intel may invite TSMC to join investment initiative, Intel's stock price rises 50%. What's next?

Management predicts the start of a new upcycle with improving financials, but stock valuations are high with little margin for error.

China's push for auto chip localization poses some risk to Himax, but its local production may offer some protection. Himax's role in Copackaged...

Vanguard Intl Semiconductor expected to see slight upside in 2Q25 outlook, with PMIC segment showing potential growth and no impact from Beijing's...