Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

<ul>
<li>Key growth is driven by the rapid increase in power requirements for AI servers and the ubiquitous demand for battery management systems (BMS) across automotive, energy storage, and robotics.</li>
<li>The company maintains its 20–30% annual growth target, with management expressing increased confidence that achieving over 20% is highly feasible.</li>
<li>That while upstream costs have risen, the company is passing these costs through to customers. Due to tight capacity, customers are generally accepting of price adjustments to ensure supply security.</li>
</ul>


Key growth is driven by the rapid increase in power requirements for AI servers and the ubiquitous demand for battery management systems (BMS) across automotive, energy storage, and robotics.
The company maintains its 20–30% annual growth target, with management expressing increased confidence that achieving over 20% is highly feasible.
That while upstream costs have risen, the company is passing these costs through to customers. Due to tight capacity, customers are generally accepting of price adjustments to ensure supply security.


Silergy (6415.TT): Management Is Confident that Exceeding 20% Is Highly Feasible.

<ul>
<li>Silergy should have the opportunity to return to 20% YoY growth this year, and we believe it has strong potential to challenge 25% YoY growth.   </li>
<li>Mature process shortages and price increases suggest that Silergy’s 8-inch products may face pricing pressure, with 8-inch wafers accounting for nearly 90% of Silergy’s products. </li>
<li>Silergy’s server products are expected to see strong progress this year, rising to above 5% by the end of 2026.  </li>
</ul>


Silergy should have the opportunity to return to 20% YoY growth this year, and we believe it has strong potential to challenge 25% YoY growth.   
Mature process shortages and price increases suggest that Silergy’s 8-inch products may face pricing pressure, with 8-inch wafers accounting for nearly 90% of Silergy’s products. 
Silergy’s server products are expected to see strong progress this year, rising to above 5% by the end of 2026.  


Silergy (6415.TT): 2026 Growth Expected to 20% YoY, Returning to Normal Levels.

<ul>
<li>4Q25 seasonal outlook? Silergy expects flat to slightly up QoQ, similar to past years.</li>
<li>Silergy does see consolidation, and given its stronger financials, product breadth, and R&amp;D capabilities, the company remains a top supplier and will continue to gain share.</li>
<li>Will 1H next year be better than 2H this year?Hard to say because of Chinese New Year seasonality.We expect YoY growth, but not strong yet.</li>
</ul>


4Q25 seasonal outlook? Silergy expects flat to slightly up QoQ, similar to past years.
Silergy does see consolidation, and given its stronger financials, product breadth, and R&amp;D capabilities, the company remains a top supplier and will continue to gain share.
Will 1H next year be better than 2H this year?Hard to say because of Chinese New Year seasonality.We expect YoY growth, but not strong yet.


Silergy (6415.TT): 4Q25 Flat or Slightly Upside; Early Gen4 Yields Remain Non-Comparable.

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

<ul>
<li>Global equities (MSCI ACWI -- ACWI-US) and the U.S. (S&amp;P 500) remain topside their respective bases at $117 and 5650-5670.</li>
<li>As discussed last week (October 17, 2024 Int'l Compass), we upgraded our outlook on global equities (MSCI ACWI) to bullish, saying to use any pre-election pullback as opportunity to buy.</li>
<li>The pullback appears to be underway, and we are buyers as long as ACWI-US and S&amp;P 500 remain above their aforementioned bases</li>
</ul>


Global equities (MSCI ACWI -- ACWI-US) and the U.S. (S&amp;P 500) remain topside their respective bases at $117 and 5650-5670.
As discussed last week (October 17, 2024 Int'l Compass), we upgraded our outlook on global equities (MSCI ACWI) to bullish, saying to use any pre-election pullback as opportunity to buy.
The pullback appears to be underway, and we are buyers as long as ACWI-US and S&amp;P 500 remain above their aforementioned bases


Buying Global Technology; SPX and MSCI ACWI Above Base Supports; Sea, TSMC, SAP, Luxshare, & More

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

<ul>
<li>Semiconductors are the 2nd largest industry allocation and the 6th largest overweight among EM active managers. However, the momentum witnessed between 2019 and 2021 has stalled.</li>
<li>EM Growth funds remain overweight, but Value and GARP funds switch from an equal weight to an underweight.</li>
<li>TSMC is the dominant stock holding whilst SK Hynix and Mediatek occupy a 2nd tier. Alchip Technologies has captured inflows, whilst EM funds are closing LONGi Green Energy Technology exposure</li>
</ul>


Semiconductors are the 2nd largest industry allocation and the 6th largest overweight among EM active managers. However, the momentum witnessed between 2019 and 2021 has stalled.
EM Growth funds remain overweight, but Value and GARP funds switch from an equal weight to an underweight.
TSMC is the dominant stock holding whilst SK Hynix and Mediatek occupy a 2nd tier. Alchip Technologies has captured inflows, whilst EM funds are closing LONGi Green Energy Technology exposure


EM Semiconductors:  Positioning Deep Dive

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): Management Is Confident that Exceeding 20% Is Highly Feasible.

Quick growth in power requirements for AI servers and demand for battery management systems driving Silergy confidence in achieving over 20% annual...

Patrick Liao

Silergy (6415.TT): 2026 Growth Expected to 20% YoY, Returning to Normal Levels.

Silergy poised for 20% YoY growth, potential for 25%; pricing pressure on 8-inch products; server products to rise to above 5% by 2026.

Patrick Liao

Silergy (6415.TT): 4Q25 Flat or Slightly Upside; Early Gen4 Yields Remain Non-Comparable.

Silergy anticipates flat to slightly up 4Q25, remains top supplier with strong financials and R&D capabilities, uncertain if 1H next year will...

Patrick Liao

Buying Global Technology; SPX and MSCI ACWI Above Base Supports; Sea, TSMC, SAP, Luxshare, & More

Buying Global Technology; $SPX and MSCI $ACWI Remain Above Base Supports at 5650-5670 and $117; Buying Taiwan Semiconductor $TSM $SE $SAP $GRAB...

Vermilion Research

EM Semiconductors: Positioning Deep Dive

The momentum in Semiconductor positioning witnessed between 2019 and 2021 has stalled. In this report we identifying the funds and the companies...

Steven Holden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Silergy (6415.TT): Management Is Confident that Exceeding 20% Is Highly Feasible.

Quick growth in power requirements for AI servers and demand for battery management systems driving Silergy confidence in achieving over 20% annual...

Patrick Liao

Silergy (6415.TT): 2026 Growth Expected to 20% YoY, Returning to Normal Levels.

​Silergy poised for 20% YoY growth, potential for 25%; pricing pressure on 8-inch products; server products to rise to above 5% by 2026.

Patrick Liao

Silergy (6415.TT): 4Q25 Flat or Slightly Upside; Early Gen4 Yields Remain Non-Comparable.

​Silergy anticipates flat to slightly up 4Q25, remains top supplier with strong financials and R&D capabilities, uncertain if 1H next year will...

Patrick Liao

Buying Global Technology; SPX and MSCI ACWI Above Base Supports; Sea, TSMC, SAP, Luxshare, & More

Buying Global Technology; $SPX and MSCI $ACWI Remain Above Base Supports at 5650-5670 and $117; Buying Taiwan Semiconductor $TSM $SE $SAP $GRAB...

Vermilion Research

EM Semiconductors: Positioning Deep Dive

The momentum in Semiconductor positioning witnessed between 2019 and 2021 has stalled. In this report we identifying the funds and the companies...

Steven Holden

Silergy poised for 20% YoY growth, potential for 25%; pricing pressure on 8-inch products; server products to rise to above 5% by 2026.

Silergy anticipates flat to slightly up 4Q25, remains top supplier with strong financials and R&D capabilities, uncertain if 1H next year will...