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) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) (TSM US)

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>Nvidia Results Today U.S. Time -- Taiwan Market Surged Recently on Improving AI/Semiconductor Expectations and Potential for Easing U.S.-China Tensions.</li>
<li>Taiwan: Underowned, Yet Gaining on Peers. Our Fellow Insight Provider Analyzes Why Taiwan Might Still Be Underowned.</li>
<li>Asia Geopolitics: Following Biden-Xi Meeting, Asia Is a Safer Place For Now.</li>
</ul>


Nvidia Results Today U.S. Time -- Taiwan Market Surged Recently on Improving AI/Semiconductor Expectations and Potential for Easing U.S.-China Tensions.
Taiwan: Underowned, Yet Gaining on Peers. Our Fellow Insight Provider Analyzes Why Taiwan Might Still Be Underowned.
Asia Geopolitics: Following Biden-Xi Meeting, Asia Is a Safer Place For Now.


Taiwan Tech Weekly: Nvidia Results Today; Taiwan Market Surged But Why It Might Be Still Underowned

Asia and Global Semiconductor and Tech Research

Andrew Lu

Vanguard Intl Semiconductor / Equity Bottom-Up

<ul>
<li>Shortage/Oversupply, price hike/cut, automotive/industrial demand and inventory corrections are still cyclical. Gross margin should double from 22-24% now once utilization returning to 100% and no more free wafer by 2025.</li>
<li>LCD driver foundry is facing a structural competition as China panel customers are building a local supply chain.</li>
<li>Attractive below NT$70 as: 1. inventory correction should be done by 2Q24; 2. global 8" foundry sales y/y improvement began 3Q23; 3. closing to cyclical low P/BV of 2.5x.</li>
</ul>


Shortage/Oversupply, price hike/cut, automotive/industrial demand and inventory corrections are still cyclical. Gross margin should double from 22-24% now once utilization returning to 100% and no more free wafer by 2025.
LCD driver foundry is facing a structural competition as China panel customers are building a local supply chain.
Attractive below NT$70 as: 1. inventory correction should be done by 2Q24; 2. global 8" foundry sales y/y improvement began 3Q23; 3. closing to cyclical low P/BV of 2.5x.


Why Is Vanguard Semi Becoming to a Bad Student, Cyclical or Structural?

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>It remains cautiously optimistic for the 2024 outlook despite limited order visibility.  </li>
<li>The Vanguard wafer shipment has decreased by 8-10% QoQ, with the ASP declining by 0-2% QoQ. The GM for 4Q23F is projected to be 22-24%. </li>
<li>The smartphone and computing/NB/TV sectors have returned to normal levels.</li>
</ul>


It remains cautiously optimistic for the 2024 outlook despite limited order visibility.  
The Vanguard wafer shipment has decreased by 8-10% QoQ, with the ASP declining by 0-2% QoQ. The GM for 4Q23F is projected to be 22-24%. 
The smartphone and computing/NB/TV sectors have returned to normal levels.


Vanguard (5347.TT): The Smartphone and Computing/NB/TV Sectors Have Turned to Normal.

<ul>
<li>Vanguard's order visibility is about two months, and its order backlog is also about two months now.</li>
<li>Vanguard's goal is to establish a 12" wafer Fab, which we estimate will likely be viable around 2026F.</li>
<li>We believe that technology nodes below 28nm HKMG, specifically 40nm and below, would be suitable for transfer.</li>
</ul>


Vanguard's order visibility is about two months, and its order backlog is also about two months now.
Vanguard's goal is to establish a 12" wafer Fab, which we estimate will likely be viable around 2026F.
We believe that technology nodes below 28nm HKMG, specifically 40nm and below, would be suitable for transfer.


VIS (5347:TT): The Outlook Is a Bit Slower in 4Q23F

United Microelectron Sp Adr / Equity Bottom-Up

<ul>
<li>The Second time Price Increase Scheduled for September in 2026.  </li>
<li>On the 12-inch side, <a href="https://www.smartkarma.com/entities/united-microelectron-sp-adr" target="_blank" data-smartkarma-citation="entities:11540:1" rel="noopener">United Microelectron Sp Adr (UMC US)</a> is collaborating with Intel to develop 12nm manufacturing capacity. This joint project is expected to enter pilot production in 2027.  </li>
<li>We believe <a href="https://www.smartkarma.com/entities/united-microelectron-sp-adr" target="_blank" data-smartkarma-citation="entities:11540:1" rel="noopener">United Microelectron Sp Adr (UMC US)</a>’s share price still has room to move higher. </li>
</ul>


The Second time Price Increase Scheduled for September in 2026.  
On the 12-inch side, United Microelectron Sp Adr (UMC US) is collaborating with Intel to develop 12nm manufacturing capacity. This joint project is expected to enter pilot production in 2027.  
We believe United Microelectron Sp Adr (UMC US)’s share price still has room to move higher. 


UMC (2303.TT, UMC.US): The 2nd Round Wafer Price Increase Within 2026.

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)

Taiwan Tech Weekly: Nvidia Results Today; Taiwan Market Surged But Why It Might Be Still Underowned

NVIDIA Corp (NVDA US) will report today U.S. time with its analyst call at 14:00 PDT, we are maintaining our Short basket of Taiwan AI names vs....

Vincent Fernando, CFA

Why Is Vanguard Semi Becoming to a Bad Student, Cyclical or Structural?

Why Is Vanguard Semi Becoming to a Bad Student? Some Cyclical or some Structural reasons for the weaknesses coupled with three reasons suggested...

Andrew Lu

Vanguard (5347.TT): The Smartphone and Computing/NB/TV Sectors Have Turned to Normal.

It remains cautiously optimistic for the 2024 outlook despite limited order visibility. The smartphone and computing/NB/TV sectors have returned...

Patrick Liao

VIS (5347:TT): The Outlook Is a Bit Slower in 4Q23F

Vanguard's order outlook is a bit slower in 4Q23F. Vanguard's goal is to establish a 12" wafer Fab, which we estimate will likely be viable with...

Patrick Liao

UMC (2303.TT, UMC.US): The 2nd Round Wafer Price Increase Within 2026.

UMC collaborating with Intel on 12nm manufacturing capacity, expected to enter pilot production in 2027, leading to potential share price...

Patrick Liao

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Taiwan Tech Weekly: Nvidia Results Today; Taiwan Market Surged But Why It Might Be Still Underowned

NVIDIA Corp (NVDA US) will report today U.S. time with its analyst call at 14:00 PDT, we are maintaining our Short basket of Taiwan AI names vs....

Vincent Fernando, CFA

Why Is Vanguard Semi Becoming to a Bad Student, Cyclical or Structural?

Why Is Vanguard Semi Becoming to a Bad Student? Some Cyclical or some Structural reasons for the weaknesses coupled with three reasons suggested...

Andrew Lu

Vanguard (5347.TT): The Smartphone and Computing/NB/TV Sectors Have Turned to Normal.

It remains cautiously optimistic for the 2024 outlook despite limited order visibility. The smartphone and computing/NB/TV sectors have returned...

Patrick Liao

VIS (5347:TT): The Outlook Is a Bit Slower in 4Q23F

Vanguard's order outlook is a bit slower in 4Q23F. Vanguard's goal is to establish a 12" wafer Fab, which we estimate will likely be viable with...

Patrick Liao

UMC (2303.TT, UMC.US): The 2nd Round Wafer Price Increase Within 2026.

​UMC collaborating with Intel on 12nm manufacturing capacity, expected to enter pilot production in 2027, leading to potential share price...

Patrick Liao

UMC collaborating with Intel on 12nm manufacturing capacity, expected to enter pilot production in 2027, leading to potential share price...