Semiconductor Industry

[winston]

Singapore Tech

Singapore-listed tech manufacturers will stand to benefit from the global chip shortage though tighter supply capacity might hinder potential gains, according to analysts and industry players.

Shares of chip makers in Asia have soared as they scramble to keep up with the rush of orders from the electronics and automotive industries due to the emergence of pandemic-driven trends such as remote working.

Taiwan Semiconductor Manufacturing Co (TSMC), for instance, surged 13.4 per cent year to date while South Korea's Samsung Electronics gained 1.7 per cent this year. They are up about 87.5 per cent and 43.6 per cent respectively from a year ago.

While Singapore is not home to any major chip makers, there are counters on the local bourse with significant exposure to the semiconductor space that will be able to ride the upswing.

Precision engineering, which produces semiconductor equipment and other machinery, saw output climbing 15.3 per cent year on year in January.

The electronics cluster also expanded 19.8 per cent, according to Economic Development Board (EDB) figures.

DBS analyst Ling Lee Keng told The Business Times that equipment and component makers such as UMS Holdings and companies with customers in the semiconductor space such as Frencken Group are among key beneficiaries.

Source: Phillips

[behappyalways]

A watch on the semiconductor industry especially Intel.



拜登半導體供應鏈行政令 與盟邦合作圍堵中國 TVBS文茜的世界周報 20210306
https://www.youtube.com/watch?v=Z6dVWPCHfKE

台積電將獨霸全球半導體市場!? 英特爾宣布自製關鍵半導體股價大跌 TVBS文茜的世界周報 20210130
https://m.youtube.com/watch?v=XO_1NU1LDVs

[winston]

Global semicon materials market rose to record US$55.3b in 2020, says SEMI

by Surin Murugiah

The global semiconductor materials market revenue rose 4.9% in 2020 to a record US$55.3 billion.

Source; theedgemarkets.com

https://www.theedgemarkets.com/article/ ... -says-semi

[winston]

According to the Semiconductor Industry Association, global semiconductor sales are projected to increase 5.1% in 2020 to US$433.1bil (RM1.76 trillion) from US$412.3bil (RM1.67 trillion) in 2019, followed by an increase of 8.4% in 2021.

[behappyalways]

拜登2兆基建案 包括至少千億加強.研究自製半導體 要消滅誰? TVBS文茜的世界周報 20210403
https://m.youtube.com/watch?v=YTxALKDoQjs




當英特爾遊說華府 把台積電從最佳伙伴 變成美要自製半導體 TVBS文茜的世界周報 20210403
https://m.youtube.com/watch?v=ifJpEtP2feE

[behappyalways]

How the chip shortage got so bad -- and why it's so hard to fix
https://asia.nikkei.com/Business/Busine ... 2&si=44594

[behappyalways]

美曾是半導體霸主 拜登拋晶片夢 圓得了嗎? TVBS文茜的世界周報 20210417 X 富蘭克林‧國民的基金
https://m.youtube.com/watch?v=UOTJSmu2HJE

[behappyalways]

21.05.04【豐富│東南西北龍鳳配】Pt.3 肯定英特爾「黑台積電黑的很認真」！
https://m.youtube.com/watch?v=cM4bs6n_7_g

[winston]

GLOBAL TECHNOLOGY – PICKING OUR SPOTS IN SEMI LAND

The impact of the ongoing chip shortage has reverberated through various downstream sectors globally, and a quick fix to the situation still proves to be somewhat elusive.

At a high level, we attribute the constraints to the production and supply chain disruptions caused by Covid-19, as well as the subsequent snapback and coincidence of demand from various end markets.

However, despite this seemingly positive backdrop for semis, the SOX index has actually returned an underperformance of ~16% against the S&P 500 index from the recent relative high in Feb’21 till mid-May’21.

Despite the more unique set of dynamics that have led to the current situation, history seems to suggest that this could well be part of a mid-cycle correction that has occurred in the past 4 cycles over the last 15 years.

However, we caution against extrapolating historical post mid-cycle recoveries in their entirety and instead prefer to pick our spots within semis.

First, semiconductor (ASIC) companies that possess the design IP, full-chip design expertise and manufacturing logistics capabilities, should continue to see partnerships/engagements from cloud/hyperscale and large OEMs that are developing their own chips.

Some of the high-end ASIC companies under coverage include Intel [INTC US; HOLD; FV: USD65] and STMicroelectronics NV (STM) [STM FP; HOLD; FV: EUR33].

Second, we remain constructive on selected compute plays, given the strength in cloud capex and gaming. Advanced Micro Devices (AMD) [AMD US; BUY; FV: USD101] is our pick within this space, as Morningstar expects AMD to benefit from broad-based growth over the rest of 2021, especially in data center sales.

Third, at a broad level, we see very favorable secular trends in the auto market around rising chip content per car. Among auto chipmakers, we highlight that NXP Semiconductors NV (NXP) [NXPI US; HOLD; FV: USD202] and STMicroelectronics NV (STM) [STM FP; HOLD; FV: EUR33] have benefited from the ongoing supply-demand imbalance by securing strong longer-term visibility and firm pricing for their proprietary products.

Separately, we also believe that the recent heatwave and increase in Covid-19 cases in Taiwan do present tactical opportunities to gain exposure to Taiwan Semiconductor (TSMC) [TSM US; BUY; FV: USD133], an undisputed leader in the semiconductor foundry space.

Despite the near-term volatility, Morningstar believes TSMC remains attractive as it is the main beneficiary of devices and computing systems adopting increasingly intricate semiconductor technologies in the long run.

On a more downstream basis within the Chinese home appliances/white goods sector, we believe that larger players are likely to have greater bargaining power with suppliers in the face of chip shortages.

Examples of these larger companies include Haier Smart Home [600690 CH, BUY; FV: RMB40], Gree Electric [000651 CH; BUY; FV: RMB69] and Midea Group [000333 CH; BUY; FV: 105], while small players are likely to see more headwinds as OEM/suppliers seem to be tilting their production capacity to top customers.

Recent soft patch in semis bears resemblance to classic mid-cycle corrections, but we caution against extrapolating the historical recoveries that follow in their entirety

Within semis, preference for selected plays within the ASIC, compute and auto space; opportunity to accumulate TSMC on the back of more idiosyncratic factors

Preference for larger players within the Chinese home appliances/white goods sector

Source: OCBC

[behappyalways]

Why the Global Chip Shortage Is Hard to Overcome | WSJ
https://www.youtube.com/watch?v=FP_g-as29x0