UMS Holdings

they are just releasing quick reports for whatever is hot at the moment.

UMS is now around all time high. Valuation is almost fair at this point. those who vested at lower cost can still hold but for new comers the juicy looking yield may mask the fact that the margin of safety is getting less.

i think the succulent point was the transition from capex of maintenance to capex of growth. there is a war on performance per unit watt, so much so that nvidia, qualcomm, intel and apple are dueling on that front.

the way i look at it as long as there is an intel vs the rest wave, competition will bring the need to invest in better chip manufacturing equipment, which is the base AMAT sells.

somehow i find the prospect being much better than we anticipate.

Some may find the following articles on 450mm wafers highly technical - some may find them interesting

Consortium Mania Sweeps 450mm Landscape
By Mark LaPedus, SemiMD
http://www.semi.org/en/node/46081?id=sgurow0713

Leti: 450mm wafers essential below 7nm
http://www.electronicsweekly.com/news/ma...m-2013-07/

NAND flash supply to remain tight in 3Q13
Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Friday 5 July 2013]
http://www.digitimes.com/news/a20130705PD203.html

(Vested)

Applied Materials Demonstrates Momentum for Profitable Growth in Mobile Era

July 08, 2013

• Consumer demand for sophisticated mobile devices creates profitable growth opportunities for Applied's semiconductor and display equipment businesses
• Company's leadership in Precision Materials Engineering enables customers to deliver mobile devices with better performance, longer battery life, higher resolution displays and new form factors
• Unveils new financial model targeting non-GAAP adjusted earnings per share of $1.50 to $2.15 by fiscal 2016

SANTA CLARA, Calif., July 8, 2013 - At a meeting of the company's top investors and equity analysts, Applied Materials today demonstrated plans to drive profitable growth by using its leadership in Precision Materials Engineering to help customers overcome the engineering challenges of delivering more powerful, battery-efficient and visually compelling digital devices to a growing global market. The evolution of transistor and display technologies propelled by consumer demand for increased mobility presents Applied Materials with new opportunities for profitable growth. Ever-growing consumer demand for faster processors, longer battery life, and bigger and better displays is creating major device performance and yield challenges for semiconductor and display manufacturers - challenges that Applied Materials is uniquely positioned to solve.

"Semiconductor and display makers are racing to deliver the new mobile products consumers demand," said Mike Splinter, chairman and chief executive officer. "The war for mobility leadership will be won by materials innovation that is enabled by Applied Materials."

The industry is re-engineering transistor designs, driving the need for new materials and new ways of handling those materials, as manufacturers look beyond shrinking lithography geometries to achieve performance gains. Applied Materials' leadership expertise in Precision Materials Engineering is critical to solving customers' toughest device challenges, and enabling further innovations in 3D transistors and display manufacturing.

"Our leadership in Precision Materials Engineering is what makes Applied unique and provides us with great opportunities for profitable growth," said Gary Dickerson, president of Applied Materials. "We are enabling major mobility inflections that bring more advanced features and improved battery life in next-generation mobile devices."

New Financial Model

Robert Halliday, senior vice president and chief financial officer, presented the company's new financial model, which outlines increased profitability goals for non-GAAP adjusted earnings per share of $1.50 - $2.15 by fiscal 2016. This model accounts for a number of factors including varying levels of industry investment and market share assumptions. "Industry inflections and the need for new materials to address technology challenges play in our favor and position us as an increasingly strategic and valuable partner to our customers, which we believe will lead to further opportunities to expand our total available market," said Halliday. "Our new financial targets are supported by our investment in cutting-edge innovation, focus on execution and discipline to lower costs as we pursue future profitable growth."

Strong Pipeline of Technology to Deliver New Mobile Products

Dr. Randhir Thakur, executive vice president and general manager of the Silicon Systems Group, highlighted several new products and discussed specific growth opportunities in transistor, interconnect, patterning and yield. "As we enter the second half of 2013, our product pipeline has us strongly positioned with a range of innovations that benefit our customers as they navigate coming technology inflections," said Thakur. "Our new transistor technologies will help customers meet the insatiable demand for more efficient computing power, while our interconnect developments ensure device reliability at the backend. The momentum we are building with these innovations will help customers accelerate their transitions to 1Xnm technology nodes and usher in a new era of mobile products."

Delivering updates on Applied Materials' display equipment business was Ali Salehpour, group vice president, general manager, Energy and Environmental Solutions and Display business groups. "The display industry is experiencing the most significant technology transition in two decades, implementing new metal oxide and low temperature polysilicon (LTPS) materials to manufacture higher resolution LCD and organic light-emitting diode (OLED) displays," said Salehpour. "Manufacturers are facing further significant device performance and yield challenges as they look to deliver larger screens with higher resolution and new form factors such as wearable and bendable displays. All these trends play to Applied Materials' sweet spot in Precision Materials Engineering, where we believe we have distinct differentiation from our competitors."

A webcast replay of the 2013 Analyst Meeting presentations by senior executives and accompanying Q&A will be available for at least 30 days at http://www.appliedmaterials.com/2013-analyst-meeting beginning July 9 at 9:00 a.m. PT.

Non-GAAP Adjusted Financial Measures

The non-GAAP EPS targets assume non-GAAP adjustments as applicable for future periods. Management uses non-GAAP adjusted results to evaluate the company's operating and financial performance in light of business objectives and for planning purposes. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Applied believes these measures enhance investors' ability to review the company's business from the same perspective as management and facilitate comparisons between periods.

Forward-Looking Statements

This release contains forward-looking statements, including those regarding Applied's industry outlooks, growth opportunities, products, strategies and 2016 financial model. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including: uncertain global economic and industry conditions; demand for mobility products; customers' new technology and capacity requirements; the concentrated nature of our customer base; Applied's ability to (i) develop, deliver and support a broad range of products and expand its markets, (ii) achieve the objectives of operational initiatives, (iii) obtain and protect IP, and (iv) attract, motivate and retain key employees; and other risks described in our most recent SEC Form 10-Q. All forward-looking statements are based on management's estimates, projections and assumptions as of July 8, 2013, and Applied undertakes no obligation to update any forward-looking statements.

Applied Materials, Inc. (Nasdaq:AMAT) is the global leader in providing innovative equipment, services and software to enable the manufacture of advanced semiconductor, flat panel display and solar photovoltaic products. Our technologies help make innovations like smartphones, flat screen TVs and solar panels more affordable and accessible to consumers and businesses around the world. Learn more at www.appliedmaterials.com.

###

Contact:

Ricky Gradwohl (editorial/media) 408.235.4676

Michael Sullivan (financial community) 408.986.7977

http://www.appliedmaterials.com/newsroom...mobile-era

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SEMI Sees 21% Increase in Chip Equipment Spending for 2014

Mid-year Forecast for Chip Equipment Industry Shows Improving Outlook

SAN FRANCISCO, Calif. — July 8, 2013 — SEMI forecasts semiconductor equipment sales will reach $43.98 billion in 2014, a 21 percent increase over estimated 2013 equipment spending, according to the mid-year edition of the SEMI Capital Equipment Forecast, released here today at the annual SEMIcon West exposition.

Following two years of conservative capital investments by major chip manufacturers, semiconductor equipment spending is forecast to grow to $43.98 billion in 2014, up from $36.29 billion projected this year. Key drivers for equipment spending are significant NAND Flash fab investments by Samsung in China and Toshiba/Sandisk in Japan, and investments by Intel, including its fabs in Ireland. Most major regions of the world will see significant equipment spending increases. Front-end wafer processing equipment will grow 24 percent in 2014 to $35.59 billion, up from $28.70 billion in 2013. Test equipment and assembly and packaging equipment will also experience growth next year, rising to $3.18 billion (+6 percent) and $2.9 billion (+14 percent), respectively. The forecast indicates that next year will be the second largest spending year ever, surpassed only by $47.7 billion spent in 2000.......................................................................

http://www.semi.org/en/node/46196?id=highlights

Lim & Tan: Applied Materials / UMS Holdings
09 July 2013

Quote: Applied Materials (AMAT), UMSH’s largest customer said that the industry spending on semiconductor equipment will pick up next year as chip makers boost output to meet demand for mobile device components.

 According to AMAT, competition among smart-phone producers is driving up demand for more advanced parts and improvement in the equipment that make them.

 The continued strong demand for tablets and smartphones will result in their customers upgrading their equipment and hence would benefit AMAT.

 This should drive AMAT’s sales up 22% to US$9.5bln and profit to double to US$1.4bln for 2014.

 This should bode well for UMS in the longer term (2014) although in the near term the company could see flattish yoy bottom-line performance due to flat demand from AMAT.

 Notwithstanding this, UMS’s 10% yield should provide decent support.

 We do not have a rating on the stock.

UMS is currently trading at 50.0 cents. Its 1Q 2013 dividend of 1.00 SG cents went XD today and will be paid on 29 July 2013. This marks the 12th consecutive quarterly dividend of at least 1.00 cents.

(Vested)

North American Semiconductor Equipment Industry Posts June 2013 Book-to-Bill Ratio of 1.10

SAN JOSE, Calif. — July 18, 2013 — North America-based manufacturers of semiconductor equipment posted $1.33 billion in orders worldwide in June 2013 (three-month average basis) and a book-to-bill ratio of 1.10, according to the June EMDS Book-to-Bill Report published today by SEMI. A book-to-bill of 1.10 means that $110 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in June 2013 was $1.33 billion. The bookings figure is 0.7 percent higher than the final May 2013 level of $1.32 billion, and is 6.6 percent lower than the June 2012 order level of $1.42 billion.

The three-month average of worldwide billings in June 2013 was $1.21 billion. The billings figure is 1.4 percent lower than the final May 2013 level of $1.22 billion, and is 21.4 percent lower than the June 2012 billings level of $1.54 billion.

“The SEMI book-to-bill ratio has been above parity for six consecutive months and bookings in the quarter ending in June are 20 percent above the quarter ending in March,” said Denny McGuirk, president and CEO of SEMI. "As recently announced, we anticipate that total worldwide equipment spending will decline by low single-digits this year and rebound with a double-digit growth rate in 2014.”.............................

http://www.semi.org/en/node/46331?id=highlights

(Vested)

Semiconductor revenues to rise 6.9% in 2013, says IDC
Jessie Shen, DIGITIMES, Taipei [Wednesday 31 July 2013]

Semiconductor revenues worldwide are forecast to reach US$320 billion in 2013, up 6.9%, according to IDC. The research firm previously estimated a smaller 3.5% increase.

IDC also forecast that semiconductor revenues will grow another 2.9% to US$329 billion in 2014, and log a CAGR of 4.2% from 2012-2017 reaching US$366 billion in 2017.

Mobile phones and tablets will drive a significant portion of the semiconductor market growth in 2013, IDC said. In addition, despite continued weak demand for PCs, strong memory growth and higher ASPs in DRAM and NAND will have a positive impact on the semiconductor market, IDC indicated.

IDC believes that semiconductor inventories decreased in the first half of 2013 and have come into balance with demand, with growth to resume in the second half of the year.

"Semiconductors for smartphones will see healthy revenue growth as demand for increased speeds and additional features continue to drive high-end smartphone demand in developed countries and low-cost smartphones in developing countries," said IDC research manager Nina Turner. "Lower cost smartphones in developing countries will make up an increasing portion of the mix and moderate future mobile wireless communication semiconductor growth."

Regionally, Japan will be the weakest region, but IDC forecasts an improvement over the contraction in 2012. Growth rates in all regions will improve for 2013 over 2012, as demand for smartphones and tablets remain strong and automotive electronics and semiconductors for the industrial market segment improve in 2013.

IDC also projected that semiconductor revenues for the computing industry segment will increase 2% in 2013, while revenues for the automotive segment are expected to grow 5.3% driven by an increase in semiconductor content in automobiles. Semiconductor revenues will climb 10.3% for the mobile wireless communications segment, and jump 15% for the consumer segment in 2013

http://www.digitimes.com/news/a20130731PR211.html

(vested)

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Growth Accelerates in the Worldwide Mobile Phone and Smartphone Markets in the Second Quarter, According to IDC

25 Jul 2013

http://www.idc.com/getdoc.jsp?containerId=prUS24239313

Combined PC and tablet shipments to reach half a billion in 2013, says Canalys

Press release, August 2; Alex Wolfgram, DIGITIMES [Friday 2 August 2013]

Research firm Canalys' latest forecasts for the PC market (desktops, notebooks and tablets) predict that 493.1 million units will ship in 2013, representing 7% on-year growth. The key driver behind the growth will be tablets, which will account for 37% of the market, up from around 25% in 2012. Looking ahead to 2017, Canalys expects that 713.8 million PCs will ship worldwide (a CAGR of 9.7%), with 64% being tablets and 25% notebooks.

The firm said that worldwide demand for tablets has gone from strength to strength, while that for desktops and notebooks has waned. In the first quarter of 2013, the desktop market fell 10.3% and the notebook market declined 13.1%. The size of the tablet market, however, more than doubled in the first quarter of 2013, with a 106.1% increase in shipments to 41.9 million units. Shipments show no sign of slowing and Canalys forecasts that in 2013 tablet shipments will reach 182.5 million units, with global tablet shipments surpassing those of notebooks in the final quarter of the year.

The reception to Windows 8 has not reinvigorated demand for Microsoft-based PCs but there is a glimmer of hope for OEMs with Microsoft's plan to release Windows 8.1 as a free upgrade. "Microsoft will continue to innovate. New versions will come and its OS release cycle will gain speed. But it must address some of the criticisms that have been directed at the OS's user interface or it risks losing even more ground to iOS and Android in the PC space," said Tim Coulling, senior analyst at Canalys.

A plethora of PC vendors have now come to market with cheaper Android devices, notably Acer, Asustek Computer and Hewlett-Packard (HP), but these vendors are joining a crowded market. "Shipment numbers can be high but absolute margins on these products are expected to be small. Low-price tablets will not be lucrative but it is necessary to compete or a vendor will simply lose relevance and scale. In fact, accessories, particularly cases, as well as the new generation of high-tech app-enabled accessories will likely provide higher margins than the products themselves," said Pin-Chen Tang, research analyst at Canalys. "This new influx of Android devices will provide a boost to the platform and Canalys therefore expects Android to take a 45% share in 2013, behind Apple at 49%. The iPad mini is expected to continue selling well, becoming more significant in terms of the product mix and spawning a further increase in consumer demand for smaller tablets.'

The great hope for Windows 8 was that it would unleash new PC form factors, combining the best of both PCs and tablets. But James Wang, an analyst at Canalys, noted, "These [2-in-1] convertible products have disappointed so far. Convertibles are too heavy in tablet form and too expensive when compared with clamshell products. Canalys therefore expects that, for at least the next 18 months, consumers will buy separate products, rather than compromise on a Windows 8 convertible or hybrid PC. Even for Android products, alternative form factors are not expected to grow rapidly due to the category being sandwiched between low-priced slates and more familiar Windows-based clamshell notebooks."

Another ray of light for PC vendors is that PC sales to businesses are, and will continue to be, far stronger than those to consumers. This trend favors the likes of HP and Lenovo, though competition will increase as others shift resources toward the commercial channels to maximize their opportunity

http://www.digitimes.com/news/a20130802PR208.html

(Vested)

at the current price of 50 cents the 5 cents dividends would yield 10%
just wanna ask you guys a quick question,
what's the probability of UMS maintaining this 5 cent payout in the coming 3-5 years to come?

if its very likely then I would think its still a very attractive investment

1H2013 Top 20 Semiconductor Sales Leaders
By IC Insights

Among the TOP 3 Sales Leaders (Intel, Samsung, and TSMC) who happened to be the Top 3 customers of Applied Materials - TSMC seems to be doing much better in revenue growth.

http://www.icinsights.com/data/articles/...ts/577.pdf