In today’s briefing:
- EQD | Nikkei Index Options Weekly – December 16 – 20
- EQD | Hong Kong Single Stock Options Weekly December 16 – 20
- EQD | Kospi Index Options Weekly – December 16 – 20
- Memory Monitor: The Emerging Mass-Market Edge AI Need for Mobiles; Long Micron Vs. Short Nanya Tech
- LG CNS IPO: Limited Float Pushes Back Passive Buying
- Taiwan Tech Weekly: Rapidus’s Challenge Vs. TSMC for 2nm; Hon Hai Hunting for Automaker Acquisition
- Tech Supply Chain Tracker (24-Dec-2024): TSMC transforms packaging market with wafer manufacturing 2.0.
- Taiwan Dual-Listings Monitor: TSMC ADR Spread Near All-Time Highs; UMC at Upper End of Range
EQD | Nikkei Index Options Weekly – December 16 – 20
- All 5 trading days of the past week saw non-volatile price declines but with implied vols still ticking higher leaving historic vol and implied vol moving in opposite directions.
- Trading activity focused on Puts, 59.5% of all options trades were Puts last week
- Postions being covered into market weakness as seen from large decrease in open interest (60% of the decline was Puts).
EQD | Hong Kong Single Stock Options Weekly December 16 – 20
- Communication Services had 39% of single stock option volumes vs only 22% of the open interest highlighting short expiry / speculative nature of trading.
- Tencent and Baidu heading in opposite directions – Baidu vol on the inexpensive side vs Tencent vol.
- Xiaomi one of only 2 optionable names trading at 52-week high (Sunny optical being the other).
EQD | Kospi Index Options Weekly – December 16 – 20
- Kospi is now off 20% from its 52-week highs. Historic vols are picking up and implieds looking like good value given market dynamics.
- Hedging increased with broad based positioning in Puts across out-of-the-money strikes.
- Heavier volume in Puts with 53.2% of added open interest being Puts.
Memory Monitor: The Emerging Mass-Market Edge AI Need for Mobiles; Long Micron Vs. Short Nanya Tech
- Micron’s Latest Outlook Disappoints & Shares Fall; Decoupling Trade Between SK Hynix & Nanya Tech Has Worked However
- Smartphone AI Insights — On-Device Local Search & Context-Aware Interfaces Emerging as Key Local AI Needs
- Conclusion — Consider Swapping In MICRON as the Long Side of the Memory Decoupling Trade
LG CNS IPO: Limited Float Pushes Back Passive Buying
- LG CNS (LGCNSZ KS) is looking to raise up to KRW 1,199bn (US$830m), valuing the company at KRW 6 trillion (US$4.15bn) at the top end of the IPO price range.
- As a member of the IT sector, inclusion in the KOSPI200 Index will only take place via Fast Entry (near impossible) or as a large-scale company.
- Inclusion in global indices could commence in September 2025 and will be easier if the identity of the pre-IPO minority shareholders is disclosed or if the strategic investors sell.
Taiwan Tech Weekly: Rapidus’s Challenge Vs. TSMC for 2nm; Hon Hai Hunting for Automaker Acquisition
- Rapidus vs. TSMC: Can Japan’s Newcomer Compete in the 2nm Race?
- Memory Monitor: The Emerging Mass-Market Edge AI Need for Mobiles; Long Micron Vs. Short Nanya Tech
- Hon Hai Pauses Nissan Pursuit Amid Honda Talks — A Japanese Savior for Nissan is Likely But This Confirms Hon Hai’s EV Ambitions Remain High
Tech Supply Chain Tracker (24-Dec-2024): TSMC transforms packaging market with wafer manufacturing 2.0.
- TSMC’s new wafer manufacturing technology is changing the advanced packaging industry, causing a forecasted slump in general-purpose memory for Samsung and SK Hynix.
- Micron is leading the way in HBM4 development, aiming for mass production by 2026, while India’s semiconductor growth is highlighted by Marvell ahead of VLSI conference.
- China’s chip crackdown escalates as global semiconductor landscape evolves, with Tesla Shanghai factory head resigning and Xiaomi denying poaching rumors. Dixon partners with Vivo to boost local production in India.
Taiwan Dual-Listings Monitor: TSMC ADR Spread Near All-Time Highs; UMC at Upper End of Range
- TSMC: +25.4% Premium; At Historical Highs, Good Level to Short the Spread
- UMC: +2.1% Premium; Upper Level of Historical Range, Short Level
- ASE: +5.4% Premium; Near-Term High However Likely Best to Wait for Higher Levels
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