UMS Holdings

Gartner Says Worldwide Semiconductor Capital Equipment Spending to Increase 12.2 Percent in 2014

STAMFORD, Conn., April 24, 2014

Worldwide semiconductor capital equipment spending is projected to total $37.5 billion in 2014, an increase of 12.2 percent from 2013 spending of $33.5 billion, according to Gartner, Inc. Capital spending will increase 5.5 percent in 2014 as the industry begins to recover from the recent economic downturn and total spending will follow a generally increasing pattern in all sectors through 2018.

"While capital spending outperformed wafer fab equipment (WFE) spending in 2013, the reverse will hold for 2014," said Bob Johnson, research vice president at Gartner. "Total capital spending will grow by 5.5 percent, while WFE will increase 13 percent as manufacturers pull back on new fab construction and concentrate in ramping new capacity instead. Momentum from exceptionally strong fourth-quarter 2013 sales is carried forward into the first quarter, then is expected to bounce around a flat trend line through the remainder of 2014. In the longer-term profile, growth continues through 2015, dips slightly in 2016 and increases through 2018."

Logic spending remains the key driver of capital spending throughout the forecast period, but due to the anticipated softening of mobile markets it will grow less than memory. Memory will provide most of the growth in capital spending through 2018, with NAND Flash being the primary impetus.

Capital spending is highly concentrated among a handful of companies. The top three companies (Intel, TSMC and Samsung) continue to account for more than half of total spending. Spending by the top five semiconductor manufacturers exceeds 64 percent of total projected 2014 spending, with the top 10 accounting for 78 percent of the total.

Gartner predicts that 2014 semiconductor capital spending will increase 5.5 percent, followed by 10 percent growth in 2015. The next cyclical decline will be a slight drop of 3.3 percent in 2016, followed by a return to growth in 2017 and 2018 (see Table 1)........................

http://www.gartner.com/newsroom/id/2717917

(vested)

Did any buddies attend the AGM this morning?

Resolution 9 had been voted down again.

Resolution 9
To give authority to the Directors to offer and grant options and/or grant awards and allot and issue shares, pursuant to the UMS Share Option Scheme, UMS Performance Share Plan and UMS Restricted Share Plan

http://infopub.sgx.com/FileOpen/UMS_Poll...eID=294259

(Vested)

(29-04-2014, 06:35 PM)Boon Wrote: Did any buddies attend the AGM this morning?

Resolution 9 had been voted down again.

Resolution 9
To give authority to the Directors to offer and grant options and/or grant awards and allot and issue shares, pursuant to the UMS Share Option Scheme, UMS Performance Share Plan and UMS Restricted Share Plan

http://infopub.sgx.com/FileOpen/UMS_Poll...eID=294259

(Vested)

Boon,

You seem to suggest that this resolution has been voted down in previous years....do you have some history ? I was frankly surprised...I don't think it is unreasonable to have an employee share plan and I was surprised that the resolution was so overwhelmingly voted down when similar resolutions are routinely passed at other companies.....

(29-04-2014, 08:26 PM)GreedandFear Wrote:

(29-04-2014, 06:35 PM)Boon Wrote: Did any buddies attend the AGM this morning?

Resolution 9 had been voted down again.

Resolution 9
To give authority to the Directors to offer and grant options and/or grant awards and allot and issue shares, pursuant to the UMS Share Option Scheme, UMS Performance Share Plan and UMS Restricted Share Plan

http://infopub.sgx.com/FileOpen/UMS_Poll...eID=294259

(Vested)

Boon,

You seem to suggest that this resolution has been voted down in previous years....do you have some history ? I was frankly surprised...I don't think it is unreasonable to have an employee share plan and I was surprised that the resolution was so overwhelmingly voted down when similar resolutions are routinely passed at other companies.....

Hi GreedandFear,

I am just as curious as you are - the resolution was passed in 2009 and 2010, but had been voted down overwhelmingly every year since 2011.

(vested)

Worldwide Smartphone Market Grows 28.6% Year Over Year in the First Quarter of 2014, According to IDC

30 Apr 2014

FRAMINGHAM, Mass. April 30, 2014 – The worldwide smartphone market began the year with an expected retrenchment from holiday quarter shipment volumes, but still posted a year-over-year increase in the first quarter of 2014 (1Q14). According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 281.5 million smartphones worldwide, up 28.6% from the 218.8 million units in 1Q13 but down -2.8% from the 289.6 million units shipped in 4Q13. The results beat IDC's forecast of 267.2 million units for the first quarter of 2014 by 5.3%.

In the worldwide mobile phone market (inclusive of smartphones), vendors shipped 448.6 million units, up 3.9% from the 431.8 million units shipped 1Q13 but down -9.0% from the 492.8 million units shipped in 4Q13. This is 0.6% lower than the 451.3 million units IDC had forecast for the quarter. Smartphones accounted for 62.7% of all mobile phone shipments in 1Q14, up from the 50.7% of all mobile phone shipments in 1Q13.

"The first quarter of the year typically brings sequential retrenchment from the holiday spending of the previous quarter," says Ramon Llamas, Research Manager with IDC's Mobile Phone team. "The small difference between the two quarters points to sustained strong demand, driven by emerging markets, low-cost devices, and the proliferation of 4G networks. If this is how we start the year, then we can look forward to another record-breaking quarter at the end of the year."

"The face of the smartphone market is changing rapidly to reflect the rise of its largest market, China, where a record 40% of the smartphones shipped worldwide in 1Q14 were bound to Chinese consumers," said Melissa Chau, Senior Research Manager with IDC's Worldwide Quarterly Mobile Phone Tracker. "In a quarter where global shipments declined sequentially, China bucked the trend. The market benefited from its seasonal Lunar New Year uptick, greater emphasis on 4G devices following the December TD-LTE network launch, and the official launch of Apple at China Mobile resulted in volumes a third higher than 4Q13 levels."

Looking Ahead

IDC expects total smartphone shipment volumes to reach 1.2 billion units in 2014, up 19.3% year over year from the 1.0 billion units shipped in 2013.......................................................

http://www.idc.com/getdoc.jsp?containerId=prUS24823414

(vested)

(29-04-2014, 09:23 PM)Boon Wrote:

(29-04-2014, 08:26 PM)GreedandFear Wrote:

(29-04-2014, 06:35 PM)Boon Wrote: Did any buddies attend the AGM this morning?

Resolution 9 had been voted down again.

Resolution 9
To give authority to the Directors to offer and grant options and/or grant awards and allot and issue shares, pursuant to the UMS Share Option Scheme, UMS Performance Share Plan and UMS Restricted Share Plan

http://infopub.sgx.com/FileOpen/UMS_Poll...eID=294259

(Vested)

Boon,

You seem to suggest that this resolution has been voted down in previous years....do you have some history ? I was frankly surprised...I don't think it is unreasonable to have an employee share plan and I was surprised that the resolution was so overwhelmingly voted down when similar resolutions are routinely passed at other companies.....

Hi GreedandFear,

I am just as curious as you are - the resolution was passed in 2009 and 2010, but had been voted down overwhelmingly every year since 2011.

(vested)

Nothing about the resolution was mentioned in the AGM for both years. It could just be there out of formality sake.

Worldwide Tablet Shipments Miss Targets as First Quarter Experiences Single-Digit Growth, According to IDC

01 May 2014

SAN MATEO, Calif., May 1, 2014 – Worldwide tablet plus 2-in-1 shipments slipped to 50.4 million units in the first calendar quarter of 2014 (1Q14) according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker. The total represents a sequential decline of -35.7% from the high-volume holiday quarter and just 3.9% growth over the same period a year ago. The slowdown was felt across operating systems and screen sizes and likely points to an even more challenging year ahead for the category.

"The rise of large-screen phones and consumers who are holding on to their existing tablets for ever longer periods of time were both contributing factors to a weaker-than-anticipated quarter for tablets and 2-in-1s," said Tom Mainelli, IDC Program Vice President, Devices and Displays. "In addition, commercial growth has not been robust enough to offset the slowing of consumer shipments."

Apple maintained its lead in the worldwide tablet plus 2-in-1 market, shipping 16.4 million units. That's down from 26.0 million units in the previous quarter and well below its total of 19.5 million units in the first quarter of 2013. Despite the contraction, the company saw its share of the market slip only modestly to 32.5%, down from the previous quarter's share of 33.2%. Samsung once again grew its worldwide share, increasing from 17.2% last quarter to 22.3% this quarter. Samsung continues to work aggressively with carriers to drive tablet shipments through attractively priced smartphone bundles. Rounding out the top five were ASUS (5%), Lenovo (4.1%), and Amazon (1.9%).

"With roughly two-thirds share, Android continues to dominate the market," said Jitesh Ubrani, Research Analyst, Worldwide Quarterly Tablet Tracker. "Although its share of the market remains small, Windows devices continue to gain traction thanks to sleeper hits like the Asus T100, whose low cost and 2-in-1 form factor appeal to those looking for something that's 'good enough'."..................................

http://www.idc.com/getdoc.jsp?containerId=prUS24833314
_________________________________________________________________________________________________________________________________________________

Digitimes Research: Global tablet shipments to rise in 2Q14

Jim Hsiao, DIGITIMES Research, Taipei [Tuesday 29 April 2014]

There will be 61.42 million tablets shipped globally in the second quarter of 2014, increasing 4.9% on quarter and 30.9% on year, according to Digitimes Research.

The shipments will consist of 13.5 million iPads, 24.62 million non-Apple tablets and 23.3 million white-box units, Digitimes Research indicated.

Apple will be the largest vendor accounting for 22% of second-quarter shipments, followed by Samsung Electronics with 20%, Asustek Computer 6.3%, Lenovo 6.1% and Acer 1.7%. Android models will account for 58.9% of branded tablet shipments, iOS 35.4% and Windows 5.7%. In terms of screen size, 7-inch models will take up 21.7% of the shipments, 7.9-inch 15.4%, 8.0- to 8.9-inch 18.4%, 9.0- to 9.9-inch 20.7%, 10.0- to 10.9-inch 21.7%, and 11-inch and above 2.1%.

Taiwan-based ODMs/OEMs will ship 20.6 million units in total for a global share of 54.0% during the quarter. Foxconn Electronics will be the largest maker accounting for 48.6% of shipments, followed by Pegatron with 24.9%, Quanta Computer 14%, Compal Electronics 8.1% and Wistron 4.4%.

http://www.digitimes.com/news/a20140429PD214.html

(vested)

(25-04-2014, 08:29 AM)Boon Wrote: Gartner Says Worldwide Semiconductor Capital Equipment Spending to Increase 12.2 Percent in 2014

STAMFORD, Conn., April 24, 2014

Worldwide semiconductor capital equipment spending is projected to total $37.5 billion in 2014, an increase of 12.2 percent from 2013 spending of $33.5 billion, according to Gartner, Inc. Capital spending will increase 5.5 percent in 2014 as the industry begins to recover from the recent economic downturn and total spending will follow a generally increasing pattern in all sectors through 2018.

"While capital spending outperformed wafer fab equipment (WFE) spending in 2013, the reverse will hold for 2014," said Bob Johnson, research vice president at Gartner. "Total capital spending will grow by 5.5 percent, while WFE will increase 13 percent as manufacturers pull back on new fab construction and concentrate in ramping new capacity instead. Momentum from exceptionally strong fourth-quarter 2013 sales is carried forward into the first quarter, then is expected to bounce around a flat trend line through the remainder of 2014. In the longer-term profile, growth continues through 2015, dips slightly in 2016 and increases through 2018."

Logic spending remains the key driver of capital spending throughout the forecast period, but due to the anticipated softening of mobile markets it will grow less than memory. Memory will provide most of the growth in capital spending through 2018, with NAND Flash being the primary impetus.

Capital spending is highly concentrated among a handful of companies. The top three companies (Intel, TSMC and Samsung) continue to account for more than half of total spending. Spending by the top five semiconductor manufacturers exceeds 64 percent of total projected 2014 spending, with the top 10 accounting for 78 percent of the total.

Gartner predicts that 2014 semiconductor capital spending will increase 5.5 percent, followed by 10 percent growth in 2015. The next cyclical decline will be a slight drop of 3.3 percent in 2016, followed by a return to growth in 2017 and 2018 (see Table 1)........................

http://www.gartner.com/newsroom/id/2717917

(vested)

IIRC, during the AGM, the Management mentioned they hope to achieve 10 - 15% growth in revenue this year assuming things remains as it is. I guess this is in line with the macro outlook.

(Vested)

(02-05-2014, 04:43 PM)Nick Wrote:

(25-04-2014, 08:29 AM)Boon Wrote: Gartner Says Worldwide Semiconductor Capital Equipment Spending to Increase 12.2 Percent in 2014

STAMFORD, Conn., April 24, 2014

Worldwide semiconductor capital equipment spending is projected to total $37.5 billion in 2014, an increase of 12.2 percent from 2013 spending of $33.5 billion, according to Gartner, Inc. Capital spending will increase 5.5 percent in 2014 as the industry begins to recover from the recent economic downturn and total spending will follow a generally increasing pattern in all sectors through 2018.

"While capital spending outperformed wafer fab equipment (WFE) spending in 2013, the reverse will hold for 2014," said Bob Johnson, research vice president at Gartner. "Total capital spending will grow by 5.5 percent, while WFE will increase 13 percent as manufacturers pull back on new fab construction and concentrate in ramping new capacity instead. Momentum from exceptionally strong fourth-quarter 2013 sales is carried forward into the first quarter, then is expected to bounce around a flat trend line through the remainder of 2014. In the longer-term profile, growth continues through 2015, dips slightly in 2016 and increases through 2018."

Logic spending remains the key driver of capital spending throughout the forecast period, but due to the anticipated softening of mobile markets it will grow less than memory. Memory will provide most of the growth in capital spending through 2018, with NAND Flash being the primary impetus.

Capital spending is highly concentrated among a handful of companies. The top three companies (Intel, TSMC and Samsung) continue to account for more than half of total spending. Spending by the top five semiconductor manufacturers exceeds 64 percent of total projected 2014 spending, with the top 10 accounting for 78 percent of the total.

Gartner predicts that 2014 semiconductor capital spending will increase 5.5 percent, followed by 10 percent growth in 2015. The next cyclical decline will be a slight drop of 3.3 percent in 2016, followed by a return to growth in 2017 and 2018 (see Table 1)........................

http://www.gartner.com/newsroom/id/2717917

(vested)

IIRC, during the AGM, the Management mentioned they hope to achieve 10 - 15% growth in revenue this year assuming things remains as it is. I guess this is in line with the macro outlook.

(Vested)

A 10-15% growth in revenue would translate into SGD 132 to 138 million.

If this played out eventually, it would surpass the record revenue of SGD 129 million achieved in 2010.

In addition, due to Increasing Marginal Returns - Net Margin, Net Profit and FCF could grow in excess of 10 to 15%.

AMAT is to hold 2Q2014 Earnings Webcast on May 15, 2014 at 4:30 p.m. ET, and I would expect UMS to release 1Q2014 results a few days before that – after which we would be in a position to get a better feel of how things are shaping up for the year - looking forward to that.

(vested)

Global Semiconductor Industry Posts Highest-Ever First Quarter Sales

March sales up 11.4 percent compared to last year; year-to-year sales increase across all regions

Published Monday, May 5, 2014 8:00 am

by Dan Rosso

WASHINGTON—May 5, 2014—The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced that worldwide sales of semiconductors reached $78.47 billion during the first quarter of 2014, marking the industry’s highest-ever first quarter sales. Global sales reached $26.16 billion for the month of March 2014, an increase of 11.4 percent from March 2013 when sales were $23.48 billion and a slight uptick of 0.4 percent compared to last month’s total of $26.04 billion. Regionally, sales in the Americas increased by 16.1 percent compared to last March, and year-to-year sales increased across all regions. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

“The global semiconductor market has demonstrated consistent momentum in recent months, and sales are well ahead of last year’s pace through the first quarter of 2014,” said Brian Toohey, president and CEO, Semiconductor Industry Association. “Perhaps most impressively, sales in March increased across all regions and every semiconductor product category compared to last year, demonstrating the market’s broad and diverse strength.”

Regionally, year-to-year sales increased in the Americas (16.1 percent), Asia Pacific (12.9 percent), Europe (8 percent), and Japan (0.4 percent), marking the first time in more than three years that year-to-year sales increased across all regions. Sales were up compared to the previous month in Europe (3.9 percent), Asia Pacific (1.4 percent), and Japan (0.3 percent), but down slightly in the Americas (-4.3 percent).

“Although recent semiconductor sales are encouraging, one threat to the semiconductor market’s continued growth and America’s overall economic strength is the innovation deficit – the gap between needed and actual federal investments in research and higher education,” Toohey continued. “Policymakers should act swiftly to close the innovation deficit by committing to robust and sustained investments in basic scientific research and higher education.”

http://www.semiconductors.org/news/2014/...ter_sales/

March 2014 chart and graph

http://www.semiconductors.org/clientuplo...elease.pdf

(vested)