Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

<ul>
<li>MediaTek's 4Q23F revenue guidance falls in line with our prior expectation. The general outlook is for double-digit growth in 2024F.</li>
<li>MediaTek believes that the 3nm SoC will certainly perform differently in 2H24F.  </li>
<li>MediaTek will pay NT$24 DPS for 1H23 earnings, and the dividend will be paid on 1/31, 2024F.</li>
</ul>


MediaTek's 4Q23F revenue guidance falls in line with our prior expectation. The general outlook is for double-digit growth in 2024F.
MediaTek believes that the 3nm SoC will certainly perform differently in 2H24F.  
MediaTek will pay NT$24 DPS for 1H23 earnings, and the dividend will be paid on 1/31, 2024F.


MediaTek (2454.TT): 4Q23F Results in Line, 2024F Smartphone Outlook Can Grow a Double Digits.

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

ASE Technology Holding   / Equity Bottom-Up

<ul>
<li>ASE's 3Q23 results came in in-line with analyst estimates, and showed gross margin ticking slightly higher QoQ.</li>
<li>Semiconductor Assembly, Testing, and Manufacturing (ATM) capacity utilization remains low, in the mid-60's percent.</li>
<li>Management is cautiously optimistic about an improving industry environment into next year, however was more guarded than what we gauged from TSMC or UMC in their recent results.</li>
</ul>


ASE's 3Q23 results came in in-line with analyst estimates, and showed gross margin ticking slightly higher QoQ.
Semiconductor Assembly, Testing, and Manufacturing (ATM) capacity utilization remains low, in the mid-60's percent.
Management is cautiously optimistic about an improving industry environment into next year, however was more guarded than what we gauged from TSMC or UMC in their recent results.


ASE's Results Shows Chip Packaging & Testing Utilization Is Still Low, However Improvement Expected

<ul>
<li>4Q23F demand recovery will be broad-based thanks to customers’ new product launch.</li>
<li>ASEH has observed an increase in rush orders across the board as customers become more cautious about restocking.</li>
<li>The DPS payout ratio for 2023F is projected to be 60-65%.</li>
</ul>


4Q23F demand recovery will be broad-based thanks to customers’ new product launch.
ASEH has observed an increase in rush orders across the board as customers become more cautious about restocking.
The DPS payout ratio for 2023F is projected to be 60-65%.


ASEH (3711.TT; ASE.US): Demand Remains Soft in 4Q23F, but ASEH Observes the Recovery Is Broad-Based.

United Microelectron Sp Adr / Equity Bottom-Up

<ul>
<li>UMC believes that the early signs indicate the end of inventory correction for smartphones and PCs. </li>
<li>The total wafer loading continues to decrease, but pricing for 12" wafers remains firm. As a result, the average selling price (ASP) continues to increase slightly. </li>
<li>The demand for strength lies in computing, thanks to the LCD controller, codec, Wi-Fi, touch IC controller, and communication applications driven by RFFE and networking IC.</li>
</ul>


UMC believes that the early signs indicate the end of inventory correction for smartphones and PCs. 
The total wafer loading continues to decrease, but pricing for 12" wafers remains firm. As a result, the average selling price (ASP) continues to increase slightly. 
The demand for strength lies in computing, thanks to the LCD controller, codec, Wi-Fi, touch IC controller, and communication applications driven by RFFE and networking IC.


UMC (2303.TT; UMC.US): The Early Signs Indicate the End of Inventory Correction.

<ul>
<li>We estimate that the outlook is still moderate downward in 4Q23F, which is a typically seasonality.</li>
<li>SPIL, in ASEH group, is serving only limited on-Substrate (oW) of Chip-on-Wafer-on-Substrate (CoWoS).</li>
<li>We note that the major big clients of ASEH are not changing at all during this time downturn.</li>
</ul>


We estimate that the outlook is still moderate downward in 4Q23F, which is a typically seasonality.
SPIL, in ASEH group, is serving only limited on-Substrate (oW) of Chip-on-Wafer-on-Substrate (CoWoS).
We note that the major big clients of ASEH are not changing at all during this time downturn.


ASEH (3711.TT): 4Q23F Outlook Should Remain Decline for a Normal Seasonality.

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)

TSMC (Taiwan Semiconductor Manufacturing) - ADR

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

MediaTek (2454.TT): 4Q23F Results in Line, 2024F Smartphone Outlook Can Grow a Double Digits.

MediaTek's 4Q23F revenue guidance falls in line with our prior expectation. The general outlook is for double-digit growth in 2024F. The 3nm SoC...

Patrick Liao

ASE's Results Shows Chip Packaging & Testing Utilization Is Still Low, However Improvement Expected

Management is cautiously optimistic about an improving industry environment into next year, however was more guarded than what we gauged from TSMC...

Vincent Fernando, CFA

ASEH (3711.TT; ASE.US): Demand Remains Soft in 4Q23F, but ASEH Observes the Recovery Is Broad-Based.

4Q23F demand recovery will be broad-based thanks to customers’ new product launch. ASEH has observed an increase in rush orders across the board as...

Patrick Liao

UMC (2303.TT; UMC.US): The Early Signs Indicate the End of Inventory Correction.

The early signs indicate the end of inventory correction for smartphones and PCs. The demand for strength lies in computing, codec, Wi-Fi, touch IC...

Patrick Liao

ASEH (3711.TT): 4Q23F Outlook Should Remain Decline for a Normal Seasonality.

The outlook is still moderate downward in 4Q23F. SPIL, in ASEH group, is serving only limited in CoWoS demand. The major big clients of ASEH are...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

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