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

Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>TSMC: Premium Soars to +15.2%, Good Level to Consider Shorting the Spread</li>
<li>UMC: Spread Bounces from Lows to Relatively Extreme High of +1.9%; Good Level to Short</li>
<li>ASE: Spread Soars to Near All-Time High of +15.5%; Consider Shorting the Spread</li>
</ul>


TSMC: Premium Soars to +15.2%, Good Level to Consider Shorting the Spread
UMC: Spread Bounces from Lows to Relatively Extreme High of +1.9%; Good Level to Short
ASE: Spread Soars to Near All-Time High of +15.5%; Consider Shorting the Spread


Taiwan Dual-Listings Monitor: TSMC & ASE Spreads Surge to Extremes; CHT Shorts Massing Pre-Earnings

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>In 2Q24F, customer demand has slowed down in the traditional low season, as inventory levels normalize.  </li>
<li>In summary, sales in USD are expected to grow in the mid-teens YoY in 2024F. Smartphone growth will be the strongest driver of this growth. </li>
<li>MediaTek is a leader in the Wi-Fi 7 market and aims to gain significant market share with its diverse product portfolio this year.</li>
</ul>


In 2Q24F, customer demand has slowed down in the traditional low season, as inventory levels normalize.  
In summary, sales in USD are expected to grow in the mid-teens YoY in 2024F. Smartphone growth will be the strongest driver of this growth. 
MediaTek is a leader in the Wi-Fi 7 market and aims to gain significant market share with its diverse product portfolio this year.


MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

Land Mark Optoelectronics / Equity Bottom-Up

<ul><li>Corporations need to adapt to smarter AI as 6G, the next evolution in mobile communication, is coming soon, bringing faster speeds and advanced technology.</li><li>Taiwan's AI startups showcase cutting-edge B2B solutions at 2024 AI Expo, while Microsoft's third-quarter revenue reaches a record high with the help of AI technology.</li><li>Despite record high SiPh shipments, LMOC had a net loss in 1Q24. Taiwan's biggest curved interactive MiniLED display, 'Wishing Tree,' steals the show at Touch Taiwan 2024.</li></ul>

Corporations need to adapt to smarter AI as 6G, the next evolution in mobile communication, is coming soon, bringing faster speeds and advanced technology.Taiwan's AI startups showcase cutting-edge B2B solutions at 2024 AI Expo, while Microsoft's third-quarter revenue reaches a record high with the help of AI technology.Despite record high SiPh shipments, LMOC had a net loss in 1Q24. Taiwan's biggest curved interactive MiniLED display, 'Wishing Tree,' steals the show at Touch Taiwan 2024.

Tech Supply Chain Tracker (26-Apr-2024): Corporations must adapt to smarter AI.

Asia and Global Semiconductor and Tech Research

Andrew Lu

<ul>
<li>Intel misses 1H24 market consensus again, post market correction of over 7%. Can shifting focus away from foundry/manufacturing help?</li>
<li>Is the breakdown change for future spin off/IPO of foundry/manufacturing, and non focus businesses like Altera and Mobileye positive?</li>
<li>We disagree Intel foundry to breakeven in two years; we see AI product lagging behind competitors and non AI server CPU being squeezed by AI server GPU and GPU/CPU integration.</li>
</ul>


Intel misses 1H24 market consensus again, post market correction of over 7%. Can shifting focus away from foundry/manufacturing help?
Is the breakdown change for future spin off/IPO of foundry/manufacturing, and non focus businesses like Altera and Mobileye positive?
We disagree Intel foundry to breakeven in two years; we see AI product lagging behind competitors and non AI server CPU being squeezed by AI server GPU and GPU/CPU integration.


Intel Is Shifting Focus to Products, Away from Manufacturing/Foundry; Worth to Follow?

ASE Technology Holding   / Equity Bottom-Up

<ul>
<li>Almost every sectors are recovery since 1Q24, and auto and industrial applications sectors still need more time to digest inventory. .    </li>
<li>The capex for 2024F has been increased by 10% for further investments in the testing business, targeting turnkey or testing customers. </li>
<li>All product lines expected to grow in 2H24F, with APT outperforming corporate average. UTR growth expected in 2H24F, reaching above 70%. </li>
</ul>


Almost every sectors are recovery since 1Q24, and auto and industrial applications sectors still need more time to digest inventory. .    
The capex for 2024F has been increased by 10% for further investments in the testing business, targeting turnkey or testing customers. 
All product lines expected to grow in 2H24F, with APT outperforming corporate average. UTR growth expected in 2H24F, reaching above 70%. 


ASEH (3711.TT; ASX.US): 1Q24F Results Were Better, and the Outlook for 2024F Was Very Positive.

Taiwan

Taiwan Semiconductor Manufacturing Company Ltd. manufactures integrated circuits based on its proprietary designs.  The Company offers a comprehensive set of integrated circuit fabrication processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory and BiCMOS chips.  Taiwan Semiconductor is an affiliate of Philips Electronics N.V.

TSMC (Taiwan Semiconductor Manufacturing) - ADR (TSM US)

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TSMC (Taiwan Semiconductor Manufacturing) - ADR (TSM US)

Taiwan Dual-Listings Monitor: TSMC & ASE Spreads Surge to Extremes; CHT Shorts Massing Pre-Earnings

ADR spreads have surged to historically extreme levels for TSMC, ASE, and UMC. For CHT, we note a surge in short interest for its Taiwan shares...

Vincent Fernando, CFA

MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...

Patrick Liao

Tech Supply Chain Tracker (26-Apr-2024): Corporations must adapt to smarter AI.

Corporations face the challenge of adapting to smarter AI while preparing for the arrival of 6G technology, promising faster speeds and advanced...

Tech Supply Chain Tracker

Intel Is Shifting Focus to Products, Away from Manufacturing/Foundry; Worth to Follow?

Intel Is Shifting Focus to Products, Away from Manufacturing/Foundry; Three structural improvement check points to follow

Andrew Lu

ASEH (3711.TT; ASX.US): 1Q24F Results Were Better, and the Outlook for 2024F Was Very Positive.

Almost every sectors are recovery since 1Q24, and auto and industrial applications sectors still need more time to digest inventory. All product...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Taiwan Dual-Listings Monitor: TSMC & ASE Spreads Surge to Extremes; CHT Shorts Massing Pre-Earnings

ADR spreads have surged to historically extreme levels for TSMC, ASE, and UMC. For CHT, we note a surge in short interest for its Taiwan shares...

Vincent Fernando, CFA

MediaTek (2454.TT): 1Q24 Results Beat; 2Q24F Revenue Outlook Shows a Flat to Downward Scenario.

​Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...

Patrick Liao

Tech Supply Chain Tracker (26-Apr-2024): Corporations must adapt to smarter AI.

Corporations face the challenge of adapting to smarter AI while preparing for the arrival of 6G technology, promising faster speeds and advanced...

Tech Supply Chain Tracker

Intel Is Shifting Focus to Products, Away from Manufacturing/Foundry; Worth to Follow?

Intel Is Shifting Focus to Products, Away from Manufacturing/Foundry; Three structural improvement check points to follow

Andrew Lu

ASEH (3711.TT; ASX.US): 1Q24F Results Were Better, and the Outlook for 2024F Was Very Positive.

Almost every sectors are recovery since 1Q24, and auto and industrial applications sectors still need more time to digest inventory. All product...

Patrick Liao

Customer demand has slowed in 2Q24F. Sales in USD are expected to grow in the mid-teens YoY and Smartphone growth will be the strongest driver in...