Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<ul>
<li>During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.</li>
<li>A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low. </li>
<li>China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.</li>
</ul>


During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.
A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low. 
China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.


More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Equity Bottom-Up

<ul>
<li>FY'23 growth forecast increased despite push outs in the EUV order book and lower than expected IBB revenues.</li>
<li>Broad-Based recovery is now looking more like a H1'24 scenario with lingering uncertainty as to how it quickly it will unfold thereafter</li>
<li>System sales to China increased from 8% of revenues in Q1'23 to 24% in Q2'23. Non-China DUV order cancellations are being snapped up by China at an unprecedented rate. </li>
</ul>


FY'23 growth forecast increased despite push outs in the EUV order book and lower than expected IBB revenues.
Broad-Based recovery is now looking more like a H1'24 scenario with lingering uncertainty as to how it quickly it will unfold thereafter
System sales to China increased from 8% of revenues in Q1'23 to 24% in Q2'23. Non-China DUV order cancellations are being snapped up by China at an unprecedented rate. 


Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

<ul>
<li>Nvidia's results and guidance sparked a massive rally in the shares, marking one of the largest single-day increases in market cap in U.S. stock market history.</li>
<li>The company sees a multi-year growth cycle of data center upgrades ahead. Key supply chain partners TSMC and ASML are rising as well.</li>
<li>Wiwynn in Taiwan should be a key winner. We also highlight a potential wildcard smallcap AI play that we will investigate further.</li>
</ul>


Nvidia's results and guidance sparked a massive rally in the shares, marking one of the largest single-day increases in market cap in U.S. stock market history.
The company sees a multi-year growth cycle of data center upgrades ahead. Key supply chain partners TSMC and ASML are rising as well.
Wiwynn in Taiwan should be a key winner. We also highlight a potential wildcard smallcap AI play that we will investigate further.


Nvidia Results Blow-Out: Multi-Year Growth Ahead; Wiwynn in Taiwan, Plus a Smallcap Wildcard AI Play

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>There’s been an avalanche of biased or disingenuous comments along the lines of “Samsung, TSMC won’t use High N.A. EUV” or “too expensive, too difficult”. </li>
<li>Samsung will use High NA in 4F² DRAM by 2028; TSMC in some but not all A14 processes by 2028. </li>
<li>We should really think about High NA as optionality value for ASML (share price), rather than a catalyst.</li>
</ul>


There’s been an avalanche of biased or disingenuous comments along the lines of “Samsung, TSMC won’t use High N.A. EUV” or “too expensive, too difficult”. 
Samsung will use High NA in 4F² DRAM by 2028; TSMC in some but not all A14 processes by 2028. 
We should really think about High NA as optionality value for ASML (share price), rather than a catalyst.


No More High N.A. EUV (ASML Next Gen)? Not Accurate. High N.A. Will Come, but Slowly: 2028-29

<ul>
<li>More US restrictions on export of SPE Semi Production Equipment to Chinese firms (CXMT, SMIC, YMTC). The big increase in Chinese spending was done over 2023-24, it's declining in 2025-26. </li>
<li>Chinese domestic SPE vendors are growing fast and gaining share from AMAT, LAM, TEL. ASML is a monopoly below 65nm. KLA is very dominant. Focus on best 2: ASML, KLA.</li>
<li>China’s efforts to grow its own supply chain and equipment makers will continue, AMEC and Naura are the leaders. Consolidation could start. </li>
</ul>


More US restrictions on export of SPE Semi Production Equipment to Chinese firms (CXMT, SMIC, YMTC). The big increase in Chinese spending was done over 2023-24, it's declining in 2025-26. 
Chinese domestic SPE vendors are growing fast and gaining share from AMAT, LAM, TEL. ASML is a monopoly below 65nm. KLA is very dominant. Focus on best 2: ASML, KLA.
China’s efforts to grow its own supply chain and equipment makers will continue, AMEC and Naura are the leaders. Consolidation could start. 


China – US: More US Restrictions on Chinese Firms, but Chinese Equipment Firms Are Growing Fast

Netherlands

ASML Holding N.V. develops, produces, and markets semiconductor manufacturing equipment, specifically machines for the production of chips through lithography. The Company services clients worldwide.

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ASML Holding NV (ASML US)

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction. During the period, global semi equipment and manufacturing...

Andrew Lu

ASML. Sanctions? Moi?

FY'23 growth forecast increased despite push outs in the EUV order book and lower IBB revenues. Semi recovery now a H1'24 scenario with uncertainty...

William Keating

Nvidia Results Blow-Out: Multi-Year Growth Ahead; Wiwynn in Taiwan, Plus a Smallcap Wildcard AI Play

The company sees US$1 trillion of data center upgrades ahead. Our AI Leaders Basket constituents TSMC and ASML are rising as well.

Vincent Fernando, CFA

No More High N.A. EUV (ASML Next Gen)? Not Accurate. High N.A. Will Come, but Slowly: 2028-29

Comments about Samsung and TSMC not using High NA EUV are misleading; both companies plan to implement it by 2028. High NA should be seen as...

Nicolas Baratte

China – US: More US Restrictions on Chinese Firms, but Chinese Equipment Firms Are Growing Fast

US to restrict export of Semi Production Equipment to Chinese firms CXMT, SMIC, YMTC. Chinese vendors gaining share from AMAT, LAM, TEL. China...

Nicolas Baratte

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Market Cap (USDm)

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More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction. During the period, global semi equipment and manufacturing...

Andrew Lu

ASML. Sanctions? Moi?

FY'23 growth forecast increased despite push outs in the EUV order book and lower IBB revenues. Semi recovery now a H1'24 scenario with uncertainty...

William Keating

Nvidia Results Blow-Out: Multi-Year Growth Ahead; Wiwynn in Taiwan, Plus a Smallcap Wildcard AI Play

The company sees US$1 trillion of data center upgrades ahead. Our AI Leaders Basket constituents TSMC and ASML are rising as well.

Vincent Fernando, CFA

No More High N.A. EUV (ASML Next Gen)? Not Accurate. High N.A. Will Come, but Slowly: 2028-29

Comments about Samsung and TSMC not using High NA EUV are misleading; both companies plan to implement it by 2028. High NA should be seen as...

Nicolas Baratte

China – US: More US Restrictions on Chinese Firms, but Chinese Equipment Firms Are Growing Fast

​US to restrict export of Semi Production Equipment to Chinese firms CXMT, SMIC, YMTC. Chinese vendors gaining share from AMAT, LAM, TEL. China...

Nicolas Baratte

US to restrict export of Semi Production Equipment to Chinese firms CXMT, SMIC, YMTC. Chinese vendors gaining share from AMAT, LAM, TEL. China...