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

United Microelectron Sp Adr / Equity Bottom-Up

<ul>
<li>Given UMC's partnership with Intel to produce chips using Intel's 12nm fab capacity, we believe latest Intel developments increase the opportunity for Intel Foundry to take a stake in UMC.</li>
<li>Intel's Foundry business makes a strong partner for UMC who has deep foundry experience and talent, but doesn't have leading edge fabs nor the balance sheet to build them.</li>
<li>If Intel Foundry Services spins out or Intel strengthens its balance sheet through a deal with Qualcomm/Apollo, the potential for a deeper UMC-Intel Foundry partnership becomes even more compelling.</li>
</ul>


Given UMC's partnership with Intel to produce chips using Intel's 12nm fab capacity, we believe latest Intel developments increase the opportunity for Intel Foundry to take a stake in UMC.
Intel's Foundry business makes a strong partner for UMC who has deep foundry experience and talent, but doesn't have leading edge fabs nor the balance sheet to build them.
If Intel Foundry Services spins out or Intel strengthens its balance sheet through a deal with Qualcomm/Apollo, the potential for a deeper UMC-Intel Foundry partnership becomes even more compelling.


United Microelectronics: Intel Foundry Should Take a Stake; Latest News Makes This More Likely

Asia and Global Semiconductor and Tech Research

Andrew Lu

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>TSMC reiterates 2024 sales y/y growth of 20-25% but revises down 2024 global semiconductor y/y sales from over 10% to 10% and global foundry sales growth from 20% to 15-19%.</li>
<li>
<strong>No more Moore's Law</strong>: After 3 years ramp up gap between N5-N3, TSMC confirms 10-11 quarters of ramp up gap between N3 and N2 due to longer production cycle.</li>
<li>Driven by stronger digital consumer (33% q/q), HPC (3% q/q), IoT (5% q/q) sales but weaker smartphone IC (-16% q/q), TSMC reports 1Q24 sales decline of only 5% q/q.</li>
</ul>


TSMC reiterates 2024 sales y/y growth of 20-25% but revises down 2024 global semiconductor y/y sales from over 10% to 10% and global foundry sales growth from 20% to 15-19%.

No more Moore's Law: After 3 years ramp up gap between N5-N3, TSMC confirms 10-11 quarters of ramp up gap between N3 and N2 due to longer production cycle.
Driven by stronger digital consumer (33% q/q), HPC (3% q/q), IoT (5% q/q) sales but weaker smartphone IC (-16% q/q), TSMC reports 1Q24 sales decline of only 5% q/q.


What Is TSMC Telling Us About Semi Supply Chain Stories at Its Investor Conference?

Taiwan Tech Focused Senior Analyst

Patrick Liao

United Microelectronics Corp / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a>'s 2Q24F outlook is experiencing a slight upward now, possibly indicating a positive QoQ.  </li>
<li>UMC's notable contributors are showing a mixed outlook, and <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> could be the most influencer.</li>
<li>Attention should be paid to the 3Q24F outlook for any potential changes and a shift from a bearish view could positively impact the outlook, potentially signaling the end of downturn.  </li>
</ul>



United Microelectronics Corp (2303 TT)'s 2Q24F outlook is experiencing a slight upward now, possibly indicating a positive QoQ.  
UMC's notable contributors are showing a mixed outlook, and Novatek Microelectronics Corp (3034 TT) could be the most influencer.
Attention should be paid to the 3Q24F outlook for any potential changes and a shift from a bearish view could positively impact the outlook, potentially signaling the end of downturn.  


UMC (2303.TT; UMC.US): Some Rush Orders Coming in and 2Q24F Could Post Positive QoQ.

<ul>
<li>The results for 1Q24F should remain unchanged, even though we anticipate a slight upside.  </li>
<li>UMC's outlook for 2Q24F is deteriorating, with a likely decline 5-10% QoQ.</li>
<li>The demand from UMC's clients is not improving in 2Q24F.</li>
</ul>


The results for 1Q24F should remain unchanged, even though we anticipate a slight upside.  
UMC's outlook for 2Q24F is deteriorating, with a likely decline 5-10% QoQ.
The demand from UMC's clients is not improving in 2Q24F.


UMC (2303.TT; UMC.US): Current 2Q24F Outlook Is Downside 5-10% QoQ.

<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

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 Microelectronics Corp (2303 TT)

United Microelectronics: Intel Foundry Should Take a Stake; Latest News Makes This More Likely

UMC's partnership with Intel could lead to Intel Foundry taking a stake in UMC due to Intel's latest developments and UMC's foundry experience.

Vincent Fernando, CFA

What Is TSMC Telling Us About Semi Supply Chain Stories at Its Investor Conference?

What Is TSMC Telling Us About Semi Supply Chain Stories at Its Investor Conference? TSMC revises down 2024 global semi y/y sales from over 10% to...

Andrew Lu

UMC (2303.TT; UMC.US): Some Rush Orders Coming in and 2Q24F Could Post Positive QoQ.

UMC's 2Q24F outlook is slightly improving, with Novatek Microelectronics Corp potentially being a key influencer. Keep an eye on the 3Q24F outlook...

Patrick Liao

UMC (2303.TT; UMC.US): Current 2Q24F Outlook Is Downside 5-10% QoQ.

UMC's 1Q24F results expected to hold steady, while 2Q24F outlook shows declining demand and potential 5-10% decrease. The demand from UMC's...

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

United Microelectronics: Intel Foundry Should Take a Stake; Latest News Makes This More Likely

​UMC's partnership with Intel could lead to Intel Foundry taking a stake in UMC due to Intel's latest developments and UMC's foundry experience.

Vincent Fernando, CFA

What Is TSMC Telling Us About Semi Supply Chain Stories at Its Investor Conference?

What Is TSMC Telling Us About Semi Supply Chain Stories at Its Investor Conference? TSMC revises down 2024 global semi y/y sales from over 10% to...

Andrew Lu

UMC (2303.TT; UMC.US): Some Rush Orders Coming in and 2Q24F Could Post Positive QoQ.

​UMC's 2Q24F outlook is slightly improving, with Novatek Microelectronics Corp potentially being a key influencer. Keep an eye on the 3Q24F outlook...

Patrick Liao

UMC (2303.TT; UMC.US): Current 2Q24F Outlook Is Downside 5-10% QoQ.

​UMC's 1Q24F results expected to hold steady, while 2Q24F outlook shows declining demand and potential 5-10% decrease. The demand from UMC's...

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

UMC's partnership with Intel could lead to Intel Foundry taking a stake in UMC due to Intel's latest developments and UMC's foundry experience.

UMC's 2Q24F outlook is slightly improving, with Novatek Microelectronics Corp potentially being a key influencer. Keep an eye on the 3Q24F outlook...

UMC's 1Q24F results expected to hold steady, while 2Q24F outlook shows declining demand and potential 5-10% decrease. The demand from UMC's...

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