Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

<ul>
<li>The short-term recovery momentum observed in China and consumer markets.</li>
<li>The Gen 3 in 4Q23 accounts for about 50% of the production, expected to increase to around 60-70% in 4Q24F.</li>
<li>Expecting to improve quarter by quarter after reaching the bottom in 1Q24F, and the growth is expected to recover to around 20%+ YoY in 2024F.</li>
</ul>


The short-term recovery momentum observed in China and consumer markets.
The Gen 3 in 4Q23 accounts for about 50% of the production, expected to increase to around 60-70% in 4Q24F.
Expecting to improve quarter by quarter after reaching the bottom in 1Q24F, and the growth is expected to recover to around 20%+ YoY in 2024F.


Silergy (6415.TT): Expecting a Seasonal Decline In 1Q24F, and Likely Another Growth Year in 2024F.

<ul>
<li>The Reasons Behind U.S. Weakness Are Not Necessarily the Reasons for Taiwan Weakness</li>
<li>Taiwan Has Its Own Industry-Specific Catalysts and The companies we have been following closely: <a href="https://www.smartkarma.com/entities/silergy-corp" target="_blank" data-smartkarma-citation="entities:13998:1" rel="noopener">Silergy Corp (6415 TT), </a><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 <a href="https://www.smartkarma.com/entities/globalwafers-co-ltd" target="_blank" data-smartkarma-citation="entities:17916:1" rel="noopener">Globalwafers (6488 TT).</a>
</li>
<li>This Is Actually a Positive Signal for Silergy if we observe: The broader Taiwan market remains positive, U.S. equities close lower but Taiwan doesn't follow, Capital continues flowing into AI-sectors.</li>
</ul>


The Reasons Behind U.S. Weakness Are Not Necessarily the Reasons for Taiwan Weakness
Taiwan Has Its Own Industry-Specific Catalysts and The companies we have been following closely: Silergy Corp (6415 TT), Vanguard Intl Semiconductor (5347 TT) and Globalwafers (6488 TT).

This Is Actually a Positive Signal for Silergy if we observe: The broader Taiwan market remains positive, U.S. equities close lower but Taiwan doesn't follow, Capital continues flowing into AI-sectors.


Silergy (6415.TT): Our Preferred Pick Among 8-Inch Foundries and Silicon Wafer Manufacturers.

<ul>
<li>Following the recent IC price increases implemented by <a href="https://www.smartkarma.com/entities/texas-instruments-inc" target="_blank" data-smartkarma-citation="entities:18804:1" rel="noopener">Texas Instruments (TXN US)</a>, <a href="https://www.smartkarma.com/entities/silergy-corp" target="_blank" data-smartkarma-citation="entities:13998:1" rel="noopener">Silergy Corp (6415 TT)</a> has also begun raising prices for its IC products.</li>
<li>Based on our understanding, automotive PMICs (Power Management ICs) and server-related products are likely the primary drivers behind this latest round of price increases.</li>
<li>Silergy’s products typically require approximately two years to complete the qualification process, including both system-level validation and product transition procedures.</li>
</ul>


Following the recent IC price increases implemented by Texas Instruments (TXN US), Silergy Corp (6415 TT) has also begun raising prices for its IC products.
Based on our understanding, automotive PMICs (Power Management ICs) and server-related products are likely the primary drivers behind this latest round of price increases.
Silergy’s products typically require approximately two years to complete the qualification process, including both system-level validation and product transition procedures.


Silergy (6415.TT): Price Increase Effective July 1st.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/silergy-corp" target="_blank" data-smartkarma-citation="entities:13998:1" rel="noopener">Silergy Corp (6415 TT)</a> announced this afternoon that its May revenue grew 31.6% YoY, exceeding the 28% YoY growth recorded in April.</li>
<li>Given the equity market is currently undergoing a correction, if our investment thesis for this year proves correct, we strongly recommend that investors buy more aggressively as the market declines.</li>
<li>
<a href="https://www.smartkarma.com/entities/texas-instruments-inc" target="_blank" data-smartkarma-citation="entities:18804:1" rel="noopener">Texas Instruments (TXN US)</a> is scheduled to raise prices beginning in July this year. We strongly expect that other suppliers will follow with price increases as well.</li>
</ul>



Silergy Corp (6415 TT) announced this afternoon that its May revenue grew 31.6% YoY, exceeding the 28% YoY growth recorded in April.
Given the equity market is currently undergoing a correction, if our investment thesis for this year proves correct, we strongly recommend that investors buy more aggressively as the market declines.

Texas Instruments (TXN US) is scheduled to raise prices beginning in July this year. We strongly expect that other suppliers will follow with price increases as well.


Silergy (6415.TT): Strong May Revenue Growth of 30.6% YoY.

<ul>
<li>The key question is whether demand for PMICs is genuinely improving. Our answer is "Yes!"</li>
<li>Both <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> and <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> have announced price increases for 8-inch wafer capacity, suggesting that supply remains tight.</li>
<li>In addition, <a href="https://www.smartkarma.com/entities/texas-instruments-inc" target="_blank" data-smartkarma-citation="entities:18804:1" rel="noopener">Texas Instruments (TXN US)</a> recently announced PMIC price increases, which suggests that supply constraints are becoming more widespread across the industry. </li>
</ul>


The key question is whether demand for PMICs is genuinely improving. Our answer is "Yes!"
Both United Microelectron Sp Adr (UMC US) and Vanguard Intl Semiconductor (5347 TT) have announced price increases for 8-inch wafer capacity, suggesting that supply remains tight.
In addition, Texas Instruments (TXN US) recently announced PMIC price increases, which suggests that supply constraints are becoming more widespread across the industry. 


Silergy (6415.TT): Demand of PMIC IC Shall Be Uprising Since 2H26

China

Silergy Corp designs and manufactures a broad range of high performance analog integrated circuits.  The Company's products include single output step down regulators, dual output regulators, single output step by step regulators, power management ICs, step up LED backlight regulator, AC-DC LED lighting controller, DC input LED lighting drivers, LDO regulators, and protection switch

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Silergy Corp (6415 TT)

Silergy (6415.TT): Expecting a Seasonal Decline In 1Q24F, and Likely Another Growth Year in 2024F.

The first annual profit was turnaround in 4Q23. It's recovery momentum in China and consumer markets now. The growth is expected to recover to 20%+...

Patrick Liao

Silergy (6415.TT): Our Preferred Pick Among 8-Inch Foundries and Silicon Wafer Manufacturers.

Taiwan's industry-specific catalysts set it apart from U.S. weakness, with companies like Silergy, Vanguard, and Globalwafers showing positive...

Patrick Liao

Silergy (6415.TT): Price Increase Effective July 1st.

Silergy Corp follows Texas Instruments in raising IC prices, with automotive PMICs and server products driving the increase. Products require two...

Patrick Liao

Silergy (6415.TT): Strong May Revenue Growth of 30.6% YoY.

Silergy Corp sees strong revenue growth, Texas Instruments to raise prices in July, investors advised to buy aggressively during market correction.

Patrick Liao

Silergy (6415.TT): Demand of PMIC IC Shall Be Uprising Since 2H26

Silergy's share price drops 10% due to recent rally correction, tight supply indicated by price increases from UMC US, Vanguard Intl...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Silergy (6415.TT): Expecting a Seasonal Decline In 1Q24F, and Likely Another Growth Year in 2024F.

The first annual profit was turnaround in 4Q23. It's recovery momentum in China and consumer markets now. The growth is expected to recover to 20%+...

Patrick Liao

Silergy (6415.TT): Our Preferred Pick Among 8-Inch Foundries and Silicon Wafer Manufacturers.

​Taiwan's industry-specific catalysts set it apart from U.S. weakness, with companies like Silergy, Vanguard, and Globalwafers showing positive...

Patrick Liao

Silergy (6415.TT): Price Increase Effective July 1st.

​Silergy Corp follows Texas Instruments in raising IC prices, with automotive PMICs and server products driving the increase. Products require two...

Patrick Liao

Silergy (6415.TT): Strong May Revenue Growth of 30.6% YoY.

​Silergy Corp sees strong revenue growth, Texas Instruments to raise prices in July, investors advised to buy aggressively during market correction.

Patrick Liao

Silergy (6415.TT): Demand of PMIC IC Shall Be Uprising Since 2H26

​Silergy's share price drops 10% due to recent rally correction, tight supply indicated by price increases from UMC US, Vanguard Intl...

Patrick Liao

Taiwan's industry-specific catalysts set it apart from U.S. weakness, with companies like Silergy, Vanguard, and Globalwafers showing positive...

Silergy Corp follows Texas Instruments in raising IC prices, with automotive PMICs and server products driving the increase. Products require two...

Silergy Corp sees strong revenue growth, Texas Instruments to raise prices in July, investors advised to buy aggressively during market correction.

Silergy's share price drops 10% due to recent rally correction, tight supply indicated by price increases from UMC US, Vanguard Intl...