Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

Novatek Microelectronics Corp / Equity Bottom-Up

<ul>
<li>The supply chain received good news that <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a> as successfully passed iPhone 16 OLED DRIVER IC (DDIC) qualification.</li>
<li>Novatek's recent alliance with ARM to develop Neoverse V2 is a noteworthy development.</li>
<li>Novatek's 1Q24F forecast remains unchanged, but the outlook for 2024F is likely to show positive growth.</li>
</ul>


The supply chain received good news that Novatek Microelectronics Corp (3034 TT) as successfully passed iPhone 16 OLED DRIVER IC (DDIC) qualification.
Novatek's recent alliance with ARM to develop Neoverse V2 is a noteworthy development.
Novatek's 1Q24F forecast remains unchanged, but the outlook for 2024F is likely to show positive growth.


Novatek (3034.TT): It Had Been Qualified by the IPhone 16 for OLED Driver IC.

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

United Microelectron Sp Adr / Equity Bottom-Up

<ul>
<li>UMC spoke at an investment bank's recent conference, providing additional color on guidance and its collaboration with Intel for 12nm chip production.</li>
<li>UMC comments imply the key synergies between the two companies, whereby each can solve the other's key problem,</li>
<li>While UMC most likely needs to remain a "Taiwanese company" in terms of optics given its history, Intel's synergies with UMC establishes acquisition-value support for UMC shares in our view.</li>
</ul>


UMC spoke at an investment bank's recent conference, providing additional color on guidance and its collaboration with Intel for 12nm chip production.
UMC comments imply the key synergies between the two companies, whereby each can solve the other's key problem,
While UMC most likely needs to remain a "Taiwanese company" in terms of optics given its history, Intel's synergies with UMC establishes acquisition-value support for UMC shares in our view.


United Microelectronics Is Becoming a Great Long-Term Acquisition Target for Intel

<ul>
<li>Novatek's share price has surged by more than 15% in four days due to the news of Novatek's alliance with ARM to develop Neoverse V2.</li>
<li>While the decision on whether the iPhone 16 will feature OLED technology is still pending, the general sentiment is optimistic.</li>
<li>Novatek is set to leverage Intel Corp (INTC US)'s 12nm capacity through United Microelectron Sp Adr (UMC US) in the near future.</li>
</ul>


Novatek's share price has surged by more than 15% in four days due to the news of Novatek's alliance with ARM to develop Neoverse V2.
While the decision on whether the iPhone 16 will feature OLED technology is still pending, the general sentiment is optimistic.
Novatek is set to leverage Intel Corp (INTC US)'s 12nm capacity through United Microelectron Sp Adr (UMC US) in the near future.


Novatek (3034.TT): It's Said to Alliance with ARM to Build up Neoverse V2, Targeting AI Market.

<ul>
<li>The sales of Jan 2024F were the lowest during 2022-2024F, indicating a likely downtrend for 1Q24F.</li>
<li>Demand is expected to remain sluggish in 2Q24F, potentially resulting in decreased raw wafer demand for Logic and Memory in 2Q24F.</li>
<li>The market for 12" raw wafers is expected to have a more stable demand-supply balance, while raw wafers of 8” and smaller sizes could experience reduced demand in 1H24F.</li>
</ul>


The sales of Jan 2024F were the lowest during 2022-2024F, indicating a likely downtrend for 1Q24F.
Demand is expected to remain sluggish in 2Q24F, potentially resulting in decreased raw wafer demand for Logic and Memory in 2Q24F.
The market for 12" raw wafers is expected to have a more stable demand-supply balance, while raw wafers of 8” and smaller sizes could experience reduced demand in 1H24F.


Globalwafers (6488.TT): The Revenue Is Expected to Improve in 2H24F

<ul>
<li>UMC delivered full-year net income roughly in line with consensus forecasts, though reported a capacity utilization drop sequentially.</li>
<li>Capacity utilization fell during the latest quarter despite strength from UMC's 22nm &amp; 28nm offerings due to older capacity weighing down performance.</li>
<li>UMC's latest US$3.3bn capex budget contrasted with the rising cost of advanced fabs shows how Intel's Foundry business will be increasingly needed by the industry.</li>
</ul>


UMC delivered full-year net income roughly in line with consensus forecasts, though reported a capacity utilization drop sequentially.
Capacity utilization fell during the latest quarter despite strength from UMC's 22nm &amp; 28nm offerings due to older capacity weighing down performance.
UMC's latest US$3.3bn capex budget contrasted with the rising cost of advanced fabs shows how Intel's Foundry business will be increasingly needed by the industry.


UMC's Results Show How Intel's New Foundry Business Is Poised to Become More Valuable

Taiwan

United Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs) and related electronic products.  The Company's main products are consumer electronic ICs, memory ICs, personal computer peripheral ICs, and communication ICs.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

United Microelectron Sp Adr (UMC US)

Novatek (3034.TT): It Had Been Qualified by the IPhone 16 for OLED Driver IC.

Novatek's successful qualification for iPhone 16 OLED DDIC and partnership with ARM for Neoverse V2 development signal positive growth in 2024.

Patrick Liao

United Microelectronics Is Becoming a Great Long-Term Acquisition Target for Intel

UMC discussed collaboration with Intel at conference Monday, highlighting synergies and potential acquisition-value support for UMC shares. Why...

Vincent Fernando, CFA

Novatek (3034.TT): It's Said to Alliance with ARM to Build up Neoverse V2, Targeting AI Market.

Novatek's stock soars on partnership with ARM for Neoverse V2, potential collaboration with Intel for 12nm capacity. Optimism surrounds iPhone...

Patrick Liao

Globalwafers (6488.TT): The Revenue Is Expected to Improve in 2H24F

Sales of Jan 2024F hit a low, signaling a potential downtrend for 1Q24F. Demand in 2Q24F may decrease raw wafer demand for Logic and Memory. 12"...

Patrick Liao

UMC's Results Show How Intel's New Foundry Business Is Poised to Become More Valuable

UMC's net income met expectations, but capacity utilization fell due to older capacity. UMC's capex budget shows the challenges in keeping pace...

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Novatek (3034.TT): It Had Been Qualified by the IPhone 16 for OLED Driver IC.

​Novatek's successful qualification for iPhone 16 OLED DDIC and partnership with ARM for Neoverse V2 development signal positive growth in 2024.

Patrick Liao

United Microelectronics Is Becoming a Great Long-Term Acquisition Target for Intel

​UMC discussed collaboration with Intel at conference Monday, highlighting synergies and potential acquisition-value support for UMC shares. Why...

Vincent Fernando, CFA

Novatek (3034.TT): It's Said to Alliance with ARM to Build up Neoverse V2, Targeting AI Market.

​Novatek's stock soars on partnership with ARM for Neoverse V2, potential collaboration with Intel for 12nm capacity. Optimism surrounds iPhone...

Patrick Liao

Globalwafers (6488.TT): The Revenue Is Expected to Improve in 2H24F

​Sales of Jan 2024F hit a low, signaling a potential downtrend for 1Q24F. Demand in 2Q24F may decrease raw wafer demand for Logic and Memory. 12"...

Patrick Liao

UMC's Results Show How Intel's New Foundry Business Is Poised to Become More Valuable

​UMC's net income met expectations, but capacity utilization fell due to older capacity. UMC's capex budget shows the challenges in keeping pace...

Vincent Fernando, CFA

Novatek's successful qualification for iPhone 16 OLED DDIC and partnership with ARM for Neoverse V2 development signal positive growth in 2024.

UMC discussed collaboration with Intel at conference Monday, highlighting synergies and potential acquisition-value support for UMC shares. Why...

Novatek's stock soars on partnership with ARM for Neoverse V2, potential collaboration with Intel for 12nm capacity. Optimism surrounds iPhone...

Sales of Jan 2024F hit a low, signaling a potential downtrend for 1Q24F. Demand in 2Q24F may decrease raw wafer demand for Logic and Memory. 12"...

UMC's net income met expectations, but capacity utilization fell due to older capacity. UMC's capex budget shows the challenges in keeping pace...