Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

<ul>
<li>Intel and Brookefield Asset Management recently announced that they intend to jointly invest US$30 billion into building Intel foundries in Arizona, leveraging on the US CHIPS Act.</li>
<li>Although inflation and declining consumer demand continue to affect all chipmakers, U.S. strategic objectives and policies will set Intel on a new growth trajectory and competitive position in our view.</li>
<li>A Long Intel/ Short Taiwan semiconductor strategy present a compelling opportunity. We prefer Long Intel vs. Short UMC, however, we expect Long Intel vs. Short TSMC to also be profitable.</li>
</ul>


Intel and Brookefield Asset Management recently announced that they intend to jointly invest US$30 billion into building Intel foundries in Arizona, leveraging on the US CHIPS Act.
Although inflation and declining consumer demand continue to affect all chipmakers, U.S. strategic objectives and policies will set Intel on a new growth trajectory and competitive position in our view.
A Long Intel/ Short Taiwan semiconductor strategy present a compelling opportunity. We prefer Long Intel vs. Short UMC, however, we expect Long Intel vs. Short TSMC to also be profitable.


US CHIPS Act: Long Intel Vs. Short TSMC or UMC?

Thematic (Sector/Industry)

<ul>
<li>We look at where Taiwan tech sits in the cycle and which companies appear better or worse placed to weather the coming inventory correction.</li>
<li>Semiconductor inventory to sales and gross margins near record levels, hardware metrics are high as well but less extreme.</li>
<li>Formosa SUMCO, Macronix, Nanya Technology, Hon Hai Precision, and Flexium appear ahead of the inventory correction curve and well-placed as long positions for the current phase of the cycle.</li>
</ul>


We look at where Taiwan tech sits in the cycle and which companies appear better or worse placed to weather the coming inventory correction.
Semiconductor inventory to sales and gross margins near record levels, hardware metrics are high as well but less extreme.
Formosa SUMCO, Macronix, Nanya Technology, Hon Hai Precision, and Flexium appear ahead of the inventory correction curve and well-placed as long positions for the current phase of the cycle.


Taiwan Tech: Who's Ahead of the Inventory Cycle?

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of TWSE stocks last week which has an aggregated short interest worth USD 13.3bn. </li>
<li>We highlight short interest changes in Yang Ming Marine, Silergy, Nan Ya Printed, Powerchip, Unimicron, and Evergreen Marine.</li>
<li>Top shorts in the market were UMC, Taiwan Cement, and Yang Ming Marine. </li>
</ul>


We analyzed the changes in short interest of TWSE stocks last week which has an aggregated short interest worth USD 13.3bn. 
We highlight short interest changes in Yang Ming Marine, Silergy, Nan Ya Printed, Powerchip, Unimicron, and Evergreen Marine.
Top shorts in the market were UMC, Taiwan Cement, and Yang Ming Marine. 


TWSE Short Interest Weekly (Aug 19th): Yang Ming Marine, Silergy, Nan Ya

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

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>TSMC’s ADR premium has fallen substantially and is at the lower end of its 3-year range</li>
<li>ASE’s ADR premium is in contrast near the upper end of its range</li>
<li>ChipMOS ADRs are now trading at a discount to their Taiwan shares</li>
</ul>


TSMC’s ADR premium has fallen substantially and is at the lower end of its 3-year range
ASE’s ADR premium is in contrast near the upper end of its range
ChipMOS ADRs are now trading at a discount to their Taiwan shares


Taiwan Dual-Listings – TSMC Premium Decline Could Highlight Foreign Vs. Domestic Sentiment Mismatch

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

<ul>
<li>WSTS June semiconductor revenues indicate the onset of a trend of flat-to-down sales</li>
<li>Recent chip company earnings calls largely project a down market in the current quarter</li>
<li>This is most likely the beginning of a 1½ -year downturn in semiconductors</li>
</ul>


WSTS June semiconductor revenues indicate the onset of a trend of flat-to-down sales
Recent chip company earnings calls largely project a down market in the current quarter
This is most likely the beginning of a 1½ -year downturn in semiconductors


Semiconductors Have Reached Turning Point

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.

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United Microelectron Sp Adr (UMC US)

US CHIPS Act: Long Intel Vs. Short TSMC or UMC?

Intel plans to invest US$30bn into building foundries in the US. This could set Intel on a new growth trajectory and creates an opportunity for a...

Vincent Fernando, CFA

Taiwan Tech: Who's Ahead of the Inventory Cycle?

We look at where Taiwan tech sits in the cycle and which companies appear better or worse placed to weather the coming inventory correction.

Vincent Fernando, CFA

TWSE Short Interest Weekly (Aug 19th): Yang Ming Marine, Silergy, Nan Ya

We analyzed the TWSE short interest last week and highlight short interest changes in Yang Ming Marine, Silergy, Nan Ya Printed, Powerchip,...

Ke Yan, CFA, FRM

Taiwan Dual-Listings – TSMC Premium Decline Could Highlight Foreign Vs. Domestic Sentiment Mismatch

We take a look at Taiwan dual-listings to identify if there are significant mismatches between foreign and domestic sentiments.

Vincent Fernando, CFA

Semiconductors Have Reached Turning Point

The semiconductor market is starting to change from unusual growth and record revenues to a downturn that will return it to its long-term trend. ...

Jim Handy

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