UMS Holdings

Nearly 9 Billion Wireless Connectivity Chipsets to Ship during 2019 Alone

Oyster Bay, New York - 22 May 2014

Annual wireless connectivity chipset shipments across Bluetooth, Wi-Fi, NFC, GPS, and ZigBee show no sign of slowing down, reaching almost nine billion annual shipments in 2019, finds ABI Research. Had it not been for combo chipsets and integrated platforms the number of chipsets shipped would have been even higher. Cumulative chipset shipments from 2010 through 2014 will have reached over 21 billion; during the next five years from 2015 to 2019, cumulative shipments will almost double to over 39 billion. “That is over 60 billion wireless connectivity chipsets that will have shipped over the ten year span from 2010 to 2019, driven by the emergence of new device types,” said research director Philip Solis. “There is constant change in the wireless connectivity space across wireless connectivity technologies, versions of technologies, and levels of integration at the same time.”

The vast majority of wireless connectivity chipsets – 60% – will be standalone during 2014, and this share will increase to two-thirds of the market in 2019. Integrated platforms will remain relatively steady in share over the next five years. In contrast, combo chipsets will remain steady in shipment volume, but fall in share. With regards to smartphones, Broadcom dominates combo chipset solutions and Qualcomm dominates integrated platforms with wireless connectivity. In the overall market, Broadcom, Intel, Marvell, MediaTek, and Qualcomm Atheros are all strong players in standalone Wi-Fi chipsets. In the overall market for standalone Bluetooth chipsets, Broadcom, MediaTek, and RDA are strong. Broadcom is well ahead in the overall market for combo chipsets.

“Wireless connectivity chipsets go into a vast array of types of products, and the dynamics of connectivity technologies and integration levels varies among them resulting in the aggregate effects we see,” added Solis. “The technologies and integration level are going to be different in smartphones versus home automation versus other product types in the Internet of Things.”

These findings are part of ABI Research’s Wireless Connectivity Market Research.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500

https://www.abiresearch.com/press/nearly...hipsets-to

(vested)

Just a qn: Is UMS involved or have R&D projects for 18"/ 450mm migration?

(25-05-2014, 04:48 PM)specuvestor Wrote: Just a qn: Is UMS involved or have R&D projects for 18"/ 450mm migration?

Hi Specuvestor,

Your question is an interesting one - before I take a shot at it, may I know if you have any specific reason (or concern) for asking such a question?

(vested)

Hi Boon

Just wondering as that would be a major migration roadmap and also an indication of how close they are to Applied Materials forefront R&D process as i don't think their products are directly related to node shrinkage? Sorry i could be just un-updated because the last time i met them was when they first changed from Norelco to UMS

Hi all,

on the bonus share day ( 9th June ), assuming closing price on the day before was 0.915, price should adjust to 0.732. Agreed ?
Do you think they will an arbitrage opportunity on that day if a few people miss the event an bid up the price ?
What's the best way to profit from it ? Like place limit sell orders down to 0.77 for example just in case ?

(26-05-2014, 09:01 AM)noah2013 Wrote: Hi all,

on the bonus share day ( 9th June ), assuming closing price on the day before was 0.915, price should adjust to 0.732. Agreed ?
Do you think they will an arbitrage opportunity on that day if a few people miss the event an bid up the price ?
What's the best way to profit from it ? Like place limit sell orders down to 0.77 for example just in case ?

Wa this is valuebuddies forum wor think the buddies here mainly look for undervalued stocks to invest in mid to long term timeframe rather than one off gain and ciao. But again I may be wrong hehe.

😇天堂与地狱😈就在当下

(26-05-2014, 09:01 AM)noah2013 Wrote: Hi all,

on the bonus share day ( 9th June ), assuming closing price on the day before was 0.915, price should adjust to 0.732. Agreed ?
Do you think they will an arbitrage opportunity on that day if a few people miss the event an bid up the price ?
What's the best way to profit from it ? Like place limit sell orders down to 0.77 for example just in case ?

It is not an typical arbitrage opportunity, IMO.

First of all, the market price on XB day is just Mr. Market offer on that day, it mean nothing more than that. Mr. Market mood might change daily, with no regard to fundamentals.

(26-05-2014, 01:41 AM)specuvestor Wrote: Hi Boon

Just wondering as that would be a major migration roadmap and also an indication of how close they are to Applied Materials forefront R&D process as i don't think their products are directly related to node shrinkage? Sorry i could be just un-updated because the last time i met them was when they first changed from Norelco to UMS

Hi Specuvestor,

No doubt “node shrinkage” and “wafer size migration” are two different things – nevertheless, IMO, the two are inextricably linked as far as AMAT is concerned - as new semiconductor equipment products produced by AMAT must meet the criteria of being able to handle the bigger wafer size and perform the processing steps simultaneously.

In another words, AMAT must have research and product development capabilities in both “node shrinkage” and “wafer size migration” in order to stay competitive and technologically relevant in the games - by focusing on one (node shrinkage) and ignoring the other (wafer size migration) simply isn’t going to work – the two just have to go hand- in- hand, IMO.

For fiscal year 2013, AMAT’s R&D expense was USD 1.32 billion (= 17.6% of Revenue of USD 7.509 billion). AMAT has been spending more than USD 1 billion in each of the past 4 years on R&D – there was no breakdown on how much have been spent on “wafer size migration”.

Being a strategic partner and supplier to AMAT, logically, one would expect UMS to have research and product development capabilities as well, and be actively involved with AMAT in new product development covering both “node shrinkage” and “wafer size migration”.

That said, I have not come across any articles that suggest UMS has been involved in any 450mm wafer size related R&D or projects.

In the Norelco merger, UMS had been considered by Norelco as having “a distinct expertise in flexible manufacturing systems, cleanroom assembly and a technological edge in terms of high-end special processes which were co-developed with its major customers"

In the following interview with Mano Sabnani of Business Times, Andy Luong did mentioned that UMS had work hand-in-hand with its major customer to develop the integrated systems which played a major part in the excellent set of results……and continued investment to develop new products to suit its customer needs……

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http://www.sim.edu.sg/News/NewsClippings...livery.pdf

Mano: What are your strategies for continued success in your activities (new or old) and how are you implementing these strategies?

Andy Luong: We intend to continue our focus on the semiconductor industry, But due to its cyclical nature, we will cushion this with a continued push into the oil and gas industry. As mentioned, we have worked hand-in-hand with our major customer to develop the integrated systems which played a major part in the excellent set of results in FY2010 and FY 2011. This strategy had led to both a structural increase in revenue and an expansion in net margin as more systems were sold as opposed to the lower value components and parts.

Mano: What could go wrong with the group, given the many risk factors in your business overall?

Andy Luong: UMS’s overall performance is reliant on the semiconductor sector with more than 90 per cent of total revenue coming from this industry. By nature, the semicon industry is cyclical and UMS will need an alternative source of income to mitigate any downturn. We will also tap on the increasing trend to outsource manufacturing to Asia. The contract manufacturing and semiconductor industry is highly competitive and is subject to rapid changes in technology. The group thus has to ensure that its capabilities remain technologically current and cost competitive. However, this can be overcome through our continued investment to develop new products to suit our customers’ needs.

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In short, over the years, UMS seemed to have shown product development capabilities and had co-developed certain process or products with AMAT.

That said, the most fascinating part of it all is – over the past few years, UMS has not incur any “R&D expenses” at all – isn’t is interesting? haha !

(Vested)

If I recalled correctly, UMS don't engage in R&D. There is no UMS brand or products in the semiconductor field. They are simply contract manufacturers. I believe AMAT hands them the specs and designs and UMS manufacture or assemble it as per contract requirement. The Endura system has been around for 2 decades and undergone numerous changes as AMAT revolutionizes it. I don't believe UMS plays any role in this R&D. I suspect what Andy meant is that UMS upgrades its manufacturing capabilities via purchasing new machines or acquiring companies with specialized processes (IMT) to meet the higher spec requirements from new AMAT products.

(Vested)

^^ Agree with Nick. To put it bluntly I think UMS is a high end, large size precision metal stamping company. It basically makes the structure for AMAT machines/tools. Do correct me if my understanding is wrong.

That doesn't mean it doesn't have a competitive edge, but it does explain why their R&D is minimal. Reminds me of First Engineering or Unisteel.

That's also partly why I'm asking for the 18" development. When nodes shrink, the structure is hardly affected because the wafer size is the same. But when your wafer size increases, your structure will have to be larger to accomodate and hence will have to be redesigned.