Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) (2330 TT)

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>US bans high end chip sales to China, Nvidia shares sink in reaction, as do Nvida suppliers and the overall sector.</li>
<li>Broadcom's fiscal Q3 results beat expectations and its optimistic outlook bucks the industry trend.</li>
<li>Yulon motors soars 9%; its JV with Hon Hai has received 10,000 EV pre-orders in two days.</li>
</ul>


US bans high end chip sales to China, Nvidia shares sink in reaction, as do Nvida suppliers and the overall sector.
Broadcom's fiscal Q3 results beat expectations and its optimistic outlook bucks the industry trend.
Yulon motors soars 9%; its JV with Hon Hai has received 10,000 EV pre-orders in two days.


Taiwan Tech Weekly: More Nvidia Issues, Broadcom Surprises, Yulon Soars

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>For 2Q22 guidance, the revenue declines high single digits % QoQ, and GM falls between high twenties to low-thirties.</li>
<li>The current China smartphone inventory digestion won’t influence WinSemi's expansion plan because it’s in construction phase now.</li>
<li>It is due to cellular for 2Q22 decline, which is not easy to clarify whether it’s 4G, or 5G.</li>
</ul>


For 2Q22 guidance, the revenue declines high single digits % QoQ, and GM falls between high twenties to low-thirties.
The current China smartphone inventory digestion won’t influence WinSemi's expansion plan because it’s in construction phase now.
It is due to cellular for 2Q22 decline, which is not easy to clarify whether it’s 4G, or 5G.


WinSemi (3105.TT): 1Q22 Review/ 2Q22 Preview- To Be Further Downside

<ul>
<li>WinSemi's revenue was NTD$5.56bn in 1Q22, which was -7.3% YoY and -22.96% QoQ.</li>
<li>We think WinSemi's revenue could be seeing upside until 3Q22, and it could be still struggling in 2Q22. </li>
<li>The optical devices decreased the weakest. The communication infrastructure aligned the supply chain. The handset and WiFi decreased seasonality and the WiFi router was impacted because of chip shortage.</li>
</ul>


WinSemi's revenue was NTD$5.56bn in 1Q22, which was -7.3% YoY and -22.96% QoQ.
We think WinSemi's revenue could be seeing upside until 3Q22, and it could be still struggling in 2Q22. 
The optical devices decreased the weakest. The communication infrastructure aligned the supply chain. The handset and WiFi decreased seasonality and the WiFi router was impacted because of chip shortage.


WinSemi (3105.TT): 1Q22 Preview- We Think the Hope Is in 3Q22.

<ul>
<li>In our estimate, WinSemi’s 4Q21 revenue/GM is NT$70bn/38.9% and 1Q22 revenue/GM is NT$68bn/38% respectively . Usually, the first quarter of the year is a low season. </li>
<li>For WinSemi capacity management, the company will expand once they find the utilization being reaching to 85%, or above. </li>
<li>For the inventory issues that some people might be arguing with, WinSemi did not see any sign to worry about so far. </li>
</ul>


In our estimate, WinSemi’s 4Q21 revenue/GM is NT$70bn/38.9% and 1Q22 revenue/GM is NT$68bn/38% respectively . Usually, the first quarter of the year is a low season. 
For WinSemi capacity management, the company will expand once they find the utilization being reaching to 85%, or above. 
For the inventory issues that some people might be arguing with, WinSemi did not see any sign to worry about so far. 


WinSemi (3105.TT): Usually, the First Quarter of the Year Is a Low Season.

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Sino American Silicon Products / Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a>  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including <a href="https://www.smartkarma.com/entities/globalwafers-co-ltd" target="_blank" data-smartkarma-citation="entities:17916:1" rel="noopener">Globalwafers (6488 TT)</a> , <a href="https://www.smartkarma.com/entities/parade-technologies-ltd" target="_blank" data-smartkarma-citation="entities:6987:1" rel="noopener">Parade Technologies (4966 TT)</a> , <a href="https://www.smartkarma.com/entities/actron-technology-corp" target="_blank" data-smartkarma-citation="entities:4989:1" rel="noopener">Actron Technology (8255 TT)</a> and <a href="https://www.smartkarma.com/entities/advanced-wireless-semiconduc" target="_blank" data-smartkarma-citation="entities:16559:1" rel="noopener">Advanced Wireless Semiconduc (8086 TT)</a> with only in Globalwafers - SAS owns more than 51%.</p>
<p>The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.</p>
<p>With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. </p>
<div class="content-highlight">
<p>Besides the above-mentioned reasons, <a href="https://www.smartkarma.com/entities/sino-american-silicon-products-inc" target="_blank" data-smartkarma-citation="entities:3441:1" rel="noopener">Sino American Silicon Products (5483 TT)</a> remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. </p>
</div>

Sino American Silicon Products (5483 TT)  is a Taiwan-based company mainly engaged in the research, development, design, manufacture, and distribution of semiconductor wafer products with subsidiaries in both listed and unlisted companies including Globalwafers (6488 TT) , Parade Technologies (4966 TT) , Actron Technology (8255 TT) and Advanced Wireless Semiconduc (8086 TT) with only in Globalwafers - SAS owns more than 51%.
The large discount between SAS and its subsidiaries could be due to 1) lack of bulge-bracket coverage, 2) higher polysilicon price 3) and 3) weak 1H demand from the solar and the semiconductor from COVID-19 plague which caused investors to care less about the value dislocation between SAS and its subsidiaries.
With a somewhat certain 28-30% gain in the earning as early Q1 2022, investors should start slowly building positions in SAS as the risk-off beast may disturb the confidence in the equity market much longer than what investors would like. The second scenario of increasing stake in Parade Tech should be treated as a call option as when it happens, it is a bonus of another 24%. Thus the total upside could be around 54%. 

Besides the above-mentioned reasons, Sino American Silicon Products (5483 TT) remains a smart way to gain exposure in Globalwafers which trades at 24x PER, compared to SAS that trades at 13x PER. The other factor is that Globalwafers dividend yield is 2.28% while SAS is 5.22%. 


Sino American Silicon (5483): Entry to Globalwafers and Others

Taiwan

Win Semiconductors Corp. was founded in 1999. The Company's line of business includes the manufacturing of semiconductors and related solid-state devices.

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

Win Semiconductors (3105 TT)

Taiwan Tech Weekly: More Nvidia Issues, Broadcom Surprises, Yulon Soars

Nvidia shares sink in reaction to US banning high-end chip sales to China, Taiwan's Nvida suppliers and the overall sector fall as well. Broadcom...

Vincent Fernando, CFA

WinSemi (3105.TT): 1Q22 Review/ 2Q22 Preview- To Be Further Downside

For 2Q22 guidance, the revenue declines high single digits % QoQ, and GM falls between high twenties to low-thirties. The current China smartphone...

Patrick Liao

WinSemi (3105.TT): 1Q22 Preview- We Think the Hope Is in 3Q22.

WinSemi's revenue was NTD$5.56bn in 1Q22, which was -7.3% YoY and -22.96% QoQ. We think WinSemi's revenue could be seeing upside until 3Q22, and it...

Patrick Liao

WinSemi (3105.TT): Usually, the First Quarter of the Year Is a Low Season.

In our estimate, WinSemi’s 4Q21 revenue/GM is NT$70bn/38.9% and 1Q22 revenue/GM is NT$65bn/36% respectively . Usually, the first quarter of the...

Patrick Liao

Sino American Silicon (5483): Entry to Globalwafers and Others

Sino American Silicon remains a smart way to gain exposure in Globalwafers (24x PER), compared to SAS (13x PER). The other factor is that...

Henry Soediarko

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)