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

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

Taiwan Tech Focused Senior Analyst

Patrick Liao

<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.

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

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>This week will see a wave of earnings releases for the industry including Intel, Microsofot, Mediatek, ASE, and UMC.</li>
<li>TSMC results last week provided positive color on the 2024E onwards outlook for the company as well as comments regarding a turn around for PC and mobile.</li>
<li>Taiwan AI names were some of the top losers across our Taiwan Tech universe last week.</li>
</ul>


This week will see a wave of earnings releases for the industry including Intel, Microsofot, Mediatek, ASE, and UMC.
TSMC results last week provided positive color on the 2024E onwards outlook for the company as well as comments regarding a turn around for PC and mobile.
Taiwan AI names were some of the top losers across our Taiwan Tech universe last week.


Taiwan Tech Weekly: Watch for Intel, Microsoft, Mediatek, ASE, UMC Results; AI Names Top Losers

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 Microelectronics Corp (2303 TT)

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

Taiwan Tech Weekly: Watch for Intel, Microsoft, Mediatek, ASE, UMC Results; AI Names Top Losers

TSMC results last week provided positive color on the 2024E onwards outlook for the company as well as comments regarding a turn around for PC and...

Vincent Fernando, CFA

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