Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

United Microelectronics Corp / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/united-microelectron-sp-adr" target="_blank" data-smartkarma-citation="entities:11540:1" rel="noopener">United Microelectron Sp Adr (UMC US)</a> 3Q24 outlook could be showing a slightly upside quarter over quarter and the gross margin is approaching to ~30%.</li>
<li>We estimate that UMC's overall utilization in 3Q24 will be around 65-70%, with 12” at 70-75% and 8” at 60%.</li>
<li>UMC is benefiting from Novatek shipping OLED DDIC to <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL US)</a> in 3Q24.</li>
</ul>



United Microelectron Sp Adr (UMC US) 3Q24 outlook could be showing a slightly upside quarter over quarter and the gross margin is approaching to ~30%.
We estimate that UMC's overall utilization in 3Q24 will be around 65-70%, with 12” at 70-75% and 8” at 60%.
UMC is benefiting from Novatek shipping OLED DDIC to Apple (AAPL US) in 3Q24.


UMC (2303.TT; UMC.US): The Outlook for 3Q24 Has Reached a Slightly Upside QoQ.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Foxconn Industrial Internet / Technical Analysis

<ul>
<li>Not much has changed since our latest Int'l Compass from May 31, 2024 titled "Buy the Pullback." </li>
<li>We were buyers of the pullback in global equities (MSCI ACWI, ACWI ex-US, EAFE, EM, Europe, Japan, Taiwan, etc.) with important supports holding, combined with ongoing healthy market dynamics.</li>
<li>Supports are holding, and our bullish outlook (since early-November 2023) remains intact. Continue to buy dips.</li>
</ul>


Not much has changed since our latest Int'l Compass from May 31, 2024 titled "Buy the Pullback." 
We were buyers of the pullback in global equities (MSCI ACWI, ACWI ex-US, EAFE, EM, Europe, Japan, Taiwan, etc.) with important supports holding, combined with ongoing healthy market dynamics.
Supports are holding, and our bullish outlook (since early-November 2023) remains intact. Continue to buy dips.


Downgrading Europe to Market Weight; Europe Indexes Still Bullish (Price); Bullish Outlook Intact

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Novatek Microelectronics Corp / Equity Bottom-Up

<ul><li>Taiwan's wafer foundry industry set to expand in Q2 2024 with potential government and financial support.</li><li>London Tech Week 2024 showcases AI, semiconductors, deep tech, startups, and global tech partnerships.</li><li>Quanta sees profits double despite workforce reduction, while Intel invests in Luxshare in China to boost market presence.</li></ul>

Taiwan's wafer foundry industry set to expand in Q2 2024 with potential government and financial support.London Tech Week 2024 showcases AI, semiconductors, deep tech, startups, and global tech partnerships.Quanta sees profits double despite workforce reduction, while Intel invests in Luxshare in China to boost market presence.

Tech Supply Chain Tracker (19-Jun-2024): Taiwan wafer industry in 2Q24

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 short interest of TWSE Stocks as of Jun 14th which has an aggregated short interest worth USD102.4bn.</li>
<li>We tabulate league table 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, Ctbc Financial, Realtek Semi, TSMC, Lite-On Tech, Asmedia Tech, Asustek Computer.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Jun 14th which has an aggregated short interest worth USD102.4bn.
We tabulate league table 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, Ctbc Financial, Realtek Semi, TSMC, Lite-On Tech, Asmedia Tech, Asustek Computer.


TWSE Short Interest Weekly (Jun 14th): Hon Hai, Ctbc Financial, Realtek Semi, TSMC, Lite-On Tech

<ul>
<li>We analyzed the changes in foreign holdings of TWSE Stocks as of Jun 14th which has an aggregated holding worth USD4,617.2bn.</li>
<li>We estimate that foreign flows to be inflows of USD6,436mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight foreign changes in Hon Hai, TSMC, Mediatek, Quanta Computer, Realtek Semi, Evergreen Marine, Ctbc Financial, Eva Airways, Asia Vital, Asmedia Tech.</li>
</ul>


We analyzed the changes in foreign holdings of TWSE Stocks as of Jun 14th which has an aggregated holding worth USD4,617.2bn.
We estimate that foreign flows to be inflows of USD6,436mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight foreign changes in Hon Hai, TSMC, Mediatek, Quanta Computer, Realtek Semi, Evergreen Marine, Ctbc Financial, Eva Airways, Asia Vital, Asmedia Tech.


TWSE Foreign Holding Weekly (Jun 14th): Hon Hai, TSMC, Mediatek, Quanta Computer, Realtek Semi

Taiwan

Novatek Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs).  The Company's products are used in telecommunication, computer peripherals, and LCD (liquid crystal display) drivers.

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Novatek Microelectronics Corp (3034 TT)

UMC (2303.TT; UMC.US): The Outlook for 3Q24 Has Reached a Slightly Upside QoQ.

UMC's 3rd quarter outlook shows a slight upside, with estimated overall utilization at 65-70% and benefits from Novatek shipping OLED DDIC to Apple.

Patrick Liao

Downgrading Europe to Market Weight; Europe Indexes Still Bullish (Price); Bullish Outlook Intact

Downgrading Europe to Market Weight $FEZ $STOXX; Europe Still Bullish From a Price Perspective; Bullish Outlook Intact on $ACWI $EEM; Supports...

Vermilion Research

Tech Supply Chain Tracker (19-Jun-2024): Taiwan wafer industry in 2Q24

Taiwan's wafer foundry industry grows, CIP calls for offshore wind support, London Tech Week highlights AI and startups, Global PMX improves with...

Tech Supply Chain Tracker

TWSE Short Interest Weekly (Jun 14th): Hon Hai, Ctbc Financial, Realtek Semi, TSMC, Lite-On Tech

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Hon Hai, Ctbc Financial, Realtek Semi, TSMC,...

Ke Yan, CFA, FRM

TWSE Foreign Holding Weekly (Jun 14th): Hon Hai, TSMC, Mediatek, Quanta Computer, Realtek Semi

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in Hon Hai, TSMC, Mediatek, Quanta Computer,...

Ke Yan, CFA, FRM

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UMC (2303.TT; UMC.US): The Outlook for 3Q24 Has Reached a Slightly Upside QoQ.

​UMC's 3rd quarter outlook shows a slight upside, with estimated overall utilization at 65-70% and benefits from Novatek shipping OLED DDIC to Apple.

Patrick Liao

Downgrading Europe to Market Weight; Europe Indexes Still Bullish (Price); Bullish Outlook Intact

Downgrading Europe to Market Weight $FEZ $STOXX; Europe Still Bullish From a Price Perspective; Bullish Outlook Intact on $ACWI $EEM; Supports...

Vermilion Research

Tech Supply Chain Tracker (19-Jun-2024): Taiwan wafer industry in 2Q24

Taiwan's wafer foundry industry grows, CIP calls for offshore wind support, London Tech Week highlights AI and startups, Global PMX improves with...

Tech Supply Chain Tracker

TWSE Short Interest Weekly (Jun 14th): Hon Hai, Ctbc Financial, Realtek Semi, TSMC, Lite-On Tech

We analyzed TWSE short interest report for the past week and highlighted short interest changes in Hon Hai, Ctbc Financial, Realtek Semi, TSMC,...

Ke Yan, CFA, FRM

TWSE Foreign Holding Weekly (Jun 14th): Hon Hai, TSMC, Mediatek, Quanta Computer, Realtek Semi

We analyzed TWSE foreign holding data for the past week and highlighted foreign holding changes in Hon Hai, TSMC, Mediatek, Quanta Computer,...

Ke Yan, CFA, FRM

UMC's 3rd quarter outlook shows a slight upside, with estimated overall utilization at 65-70% and benefits from Novatek shipping OLED DDIC to Apple.