UMS Holdings

From UMS's website :

To stay competitive, we continually invest in R&D to respond rapidly and effectively to customer needs. Currently, we are qualified for more than 70 special processes in the production of components for semiconductor equipment manufacturers. Some of the special processes are anodizing, plating, and chemical cleaning.

http://www.umsgroup.com.sg/abt_business.html

Collaborative R&D was also being highlighted in the Invest Asean presentation - hence, I have no doubts at all that UMS has been invloved in AMAT's R&D programs - and I would not be surprised at all if AMAT is footing the R&D bills - but this is pure speculation.

(vested)______________________________________________________________________________________

Our Edge
3. Entrenched Relationship with Top Global Customers
•Serves a select group of leading global corporations (eg, Applied Materials Inc, Schlumberger)
•Deep & continuous collaborative effort from R&D to manufacturing of components to subassembly to surface finishing
•High barrier of entry for competitors

http://www.set.or.th/th/asean_exchanges/..._ASEAN.pdf

If I remembered correctly from the recent AGM, they don't do R&D. Moreover, there is no such expenses booked in any of the financial statements. There is no reason for them to do so in any case. They don't own any rights or patents to these equipments or systems nor do they earn any share of the profits. And realistically, there is nothing UMS could offer research-wise which a giant like AMAT wouldn't already have.

My guess is that the R&D quoted above does not refer to the development of technologies for products which AMAT sells but rather possible development on the technology/technique to manufacture these products. UMS niche lies in its ability to manufacture and assemble the high quality products AMAT require without delay. Granted, the high margins shows another 'internal' niche - ability to control cost and run a highly optimized process chain. I guess it is still best to clarify with the Management. This is just my understanding of the model.

Again, this is just my opinion. It is best to clarify with the Management directly.

(Vested)

Another new product from AMAT : Innovation built on >20 years of Endura PVD Leadership - could be positive for UMS.
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Applied Materials Enables Cost-Effective Vertical Integration of 3D Chips
•Endura® Ventura™ PVD system allows high aspect ratio through-silicon via (TSV) structures for copper interconnects while reducing cost of ownership by up to 50 percent
•Industry's first high-volume manufacturing PVD titanium barrier solution for improved TSV reliability

SANTA CLARA, Calif., May 28, 2014 - Applied Materials, Inc. today introduced the Endura® Ventura™ PVD system that helps customers reduce the cost of fabricating smaller, lower power, high-performance integrated 3D chips. The system incorporates Applied's latest innovations to its industry-leading PVD* technology that enables the deposition of thin, continuous barrier and seed layers in through-silicon-vias (TSVs). Demonstrating Applied's precision materials engineering expertise, the Ventura system also uniquely supports the use of titanium in volume production as an alternate barrier material for lower cost. With the launch of the Ventura system, Applied is expanding its comprehensive toolset for wafer level packaging (WLP) applications, including TSVs, redistribution layer (RDL) and Bump*.

TSVs are a critical technology for vertically fabricating smaller and lower power future mobile and high-bandwidth devices. Vias are short vertical interconnects that pass through the silicon wafer, connecting the active side of the device to the back side of the die, providing the shortest interconnect path between multiple chips. Integrating 3D stacked devices requires greater than 10:1 aspect ratio TSV interconnect structures to be metallized with copper. The new Ventura tool solves this challenge with innovations in materials and deposition technology to manufacture TSVs more cost-effectively than previous industry solutions.

"Building on 15 years of leadership in copper interconnect technology, the Ventura system enables fabrication of robust high-aspect ratio TSVs, with up to 50 percent barrier seed cost savings compared to copper interconnect PVD systems," said Dr. Sundar Ramamurthy, vice president and general manager of Metal Deposition Products at Applied Materials. "These innovations deliver a higher-performance and more functional, yet, compact chip package with less power consumption to meet leading-edge computing needs. Customers are realizing the benefits of this new PVD system and are qualifying it for volume manufacturing."

Supporting the manufacture of high-yielding 3D chips, the Ventura system introduces advances in ionized PVD technology that assure the integrity of the barrier and seed layers that are critical to superior gap-fill and interconnect reliability. These developments significantly improve ion directionality to enable the deposition of thin, continuous and uniform metal layers deep into the vias to achieve the void-free fill necessary for robust TSVs. With the improvement in directionality, higher deposition rates can be achieved, while the amount of barrier and seed material needed can be reduced. These attributes of the Ventura system and the adoption of titanium as an alternate barrier are expected to improve device reliability and reduce the overall cost of ownership for TSV metallization.

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.

http://investors.appliedmaterials.com/ph...&highlight=

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Endura® Ventura™ PVD

As two-dimensional (2D) device scaling reaches physical and electrical limits, TSV technology is a means of transitioning to compact, three-dimensional (3D) architectures that make possible faster performance and greater functionality at lower power consumption in today’s proliferating mobile technologies. TSV enables product designers to create 3D interconnects that integrate circuit components from various nodes through vertical pathways connecting stacked chips or wafers.

Designed specifically for TSV metallization, the Applied Endura Ventura PVD system is Applied’s latest innovation in physical vapor deposition (PVD), enabling customers to extend their 2D damascene integration infrastructure and knowhow to TSVs with aspect ratios of ≥10:1 and 2.5D interposer applications. It is also the first PVD system for TSVs to offer production-worthy titanium barrier deposition. Existing PVD systems for back-end-of-line (BEOL) applications are not designed for such high aspect ratio (HAR) features, which require high deposition rates to meet productivity requirements, void-free gap fill, and good reliability. To ensure continuous step coverage essential for gap fill and device reliability, these systems must deposit relatively thick layers. Besides costing more, thick films increase the risk of stress defects that can reduce the final yield.

Addressing these TSV challenges, the Ventura system significantly reduces the technology and cost obstacles to mainstream adoption of this technology. It employs improved ion density, directionality, and tunable energy to deposit continuous tantalum or titanium barrier and copper seed layers inside HAR TSVs that are more than 50% thinner than those of BEOL systems, and greatly reduce production costs. Thinner films and higher deposition rates more than double the Ventura system’s throughput over available BEOL PVD systems.

The system allows our customers to process the materials they choose. While Applied Materials does not sell these materials, the Ventura chambers have the flexibility to process both tantalum and titanium barriers, integrated on the Endura platform with the copper seed process. Both barrier materials demonstrate high reliability, with titanium offering further cost benefits.

http://www.appliedmaterials.com/products...entura-pvd

http://www.appliedmaterials.com/files/pd...052814.pdf

(vested)

Smartphone Momentum Still Evident with Shipments Expected to Reach 1.2 Billion in 2014 and Growing 23.1% Over 2013, According to IDC

28 May 2014

FRAMINGHAM, Mass. May 28, 2014 – According to a recently published mobile phone forecast from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, worldwide smartphone shipments will reach a total of 1.2 billion units in 2014, marking a 23.1% increase from the 1.0 billion units shipped in 2013. From there, total volumes will reach 1.8 billion units in 2018, resulting in a 12.3% compound annual growth rate (CAGR) from 2013–2018.

"What makes smartphone growth so amazing is where the growth will be taking place," said Ramon Llamas, Research Manager with IDC's Mobile Phone team. "Smartphone shipments will more than double between now and 2018 within key emerging markets, including India, Indonesia, and Russia. In addition, China will account for nearly a third of all smartphone shipments in 2018. These – and other markets – will offer multiple opportunities to vendors and carriers alike, but the key will be balancing affordability with expectations."

On a worldwide basis, IDC expects the average selling price (ASP) of smartphones to reach $314 in 2014, down 6.3% from the $335 ASP in 2013. From there, ASPs are expected to reach $267 by 2018. While these prices point to a definite decline, users still expect top-notch experiences regardless of what smartphone they purchase.

"Until recently, low cost has equaled poor quality in the smartphone space,” said Ryan Reith, Program Director with IDC's Worldwide Quarterly Mobile Phone Tracker. "Given the competition at the high end, vendors like Motorola are trying to skate to where the puck is going by offering extremely affordable devices like the Moto E, which offer a ‘good enough’ experience that will suit the needs of many. This goes to show that components that were used 2-3 years back in high-end smartphones are still sufficient in many aspects, and ultimately will allow vendors to come to the table with viable low-cost solutions."................................................................

http://www.idc.com/getdoc.jsp?containerId=prUS24857114

(vested)

Global Semiconductor Leaders Develop Plan to Promote Worldwide Industry Growth

World Semiconductor Council recommendations include the elimination of tariffs, harmonization of regulations, and simplification of customs procedures

Published Tuesday, May 27, 2014 2:00 pm

by Dan Rosso

WASHINGTON—May 27, 2014—The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced that global semiconductor industry leaders reached an agreement at the 18th annual meeting of the World Semiconductor Council (WSC) last week on a series of policy proposals to strengthen the industry through international cooperation. The WSC is a worldwide body of semiconductor industry executives from China, Chinese Taipei, Europe, Japan, Korea and the United States that meets annually to address issues of global concern to the semiconductor industry. Recommendations from this year’s meeting – held in Taipei, Taiwan – are presented in the 2014 WSC Joint Statement.

http://www.semiconductors.org/clientuplo...0Final.pdf

“The World Semiconductor Council provides a unique and effective forum for global semiconductor leaders to identify challenges of mutual concern and develop a plan to overcome them,” said Ajit Manocha, 2014 WSC chairman of the U.S. delegation and former CEO of GLOBALFOUNDRIES. “The initiatives presented in the 2014 Joint Statement represent a significant step toward enacting policies that encourage open communication, intergovernmental cooperation, and fair competition throughout the world. I’m especially gratified by the WSC’s unrelenting commitment to achieving duty-free treatment for next-generation semiconductors through expansion of the Information Technology Agreement, which would be one of the most valuable agreements for the global high tech industry in over a decade.”

The Information Technology Agreement (ITA) provides for duty-free treatment of certain information technology products, including semiconductors. An expanded ITA would generate an estimated total of $1.4 trillion in annual world trade. It would provide the first opportunity to include newly developed products resulting from the dynamic technological developments in the information technology sector since 1996, when the ITA was originally concluded.

The WSC seeks expanded coverage in the ITA for new and innovative semiconductor products, including multi-component semiconductors (MCOs). MCOs comprise a growing share of the global semiconductor market, and will be key to continued growth and innovation in a vast range of downstream products, services, and sectors, providing the basis for much needed economic growth and jobs. Inclusion of MCOs in an expanded ITA would result in global annual tariff savings of between $150-300 million.

Industry leaders also made significant progress on the following issues:

• Developing a set of actions to combat semiconductor counterfeiting.

• Strengthening intellectual property (IP) rights and protections via work and analysis of issues related to utility model patents, patent quality, abusive patent litigation, and trade secrets.

• Working with global governments on implementation of encryption standards and regulations to eliminate problematic practices.

• Expressing the need for all governments and industries to maintain market-oriented practices and make sure that success is based on real competitive value.

• Affirming the global industry’s commitment to improving export control processes and procedures.

• Maintaining progress toward reducing the industry’s PFC emissions and ensuring proper attention to other environmental and supply chain matters.

• Asserting the critical importance of trade facilitation in achieving free and open markets, reducing barriers to trade, and improving business conditions that provide significant benefits to governments, industry, and consumers alike.

Industry representatives from the six regions will deliver these recommendations to an annual meeting of their governments, called the Governments and Authorities Meeting on Semiconductors (GAMS), which will take place in Fukuoka, Japan this October. The GAMS meeting represents an opportunity for industry to convey the importance of implementing the recommendations and explore areas of mutual interest with governments and authorities worldwide.

“The semiconductor industry is a key driver of economic growth and innovation in the United States and around the world,” said Brian Toohey, president and CEO, Semiconductor Industry Association. “Ours is a global industry with global challenges. We must work proactively and cooperatively with our international counterparts to ensure we have fair, open, and transparent access to international markets. The agreement reached by the World Semiconductor Council offers a path forward that opens markets, increases consumers’ ability to benefit from the latest semiconductor technologies, and strengthens market-based competition.”

For more information on the Semiconductor Industry Association, visit www.semiconductors.org.

For more information on the World Semiconductor Council, visit www.semiconductorcouncil.org.

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

(vested)

I would like to thanks Boon and Nick for their contributions and insights on this counter, without which I would not be able to make a 100% capital gain ever in my investment journey. Many thanks again.

(31-05-2014, 11:41 AM)Money4Nothing Wrote: I would like to thanks Boon and Nick for their contributions and insights on this counter, without which I would not be able to make a 100% capital gain ever in my investment journey. Many thanks again.

Hi Money4Nothing。

Congratulation on your 100% capital gain made on UMS – IMO, there was no one else other than YOURSELF that could make it happen.

There are many counters being covered on this forum by different buddies – and the views expressed on them are quite diverse.

View expressed by one buddy could be considered biased by another.

Postings made by one buddy on a particular counter could be considered as “spamming” by another.

Counters viewed positively by some could be viewed negatively by others.

Inevitably, some counters turned out to be doing well and some are doing badly or not so well.

Ultimately, one should draw his/her own conclusion on which counters to invest – and be solely responsible for the outcome of his/her investment decisions.

(vested)

(31-05-2014, 11:41 AM)Money4Nothing Wrote: I would like to thanks Boon and Nick for their contributions and insights on this counter, without which I would not be able to make a 100% capital gain ever in my investment journey. Many thanks again.

Welcome to our VB. Both of them are our valuable contributors indeed. There are more you can learn and benefit from them.

Wish you a fruitful venture in our VB forum.

Regards
Moderator

(31-05-2014, 09:33 PM)Boon Wrote:

(31-05-2014, 11:41 AM)Money4Nothing Wrote: I would like to thanks Boon and Nick for their contributions and insights on this counter, without which I would not be able to make a 100% capital gain ever in my investment journey. Many thanks again.

Hi Money4Nothing。

Congratulation on your 100% capital gain made on UMS – IMO, there was no one else other than YOURSELF that could make it happen.

There are many counters being covered on this forum by different buddies – and the views expressed on them are quite diverse.

View expressed by one buddy could be considered biased by another.

Postings made by one buddy on a particular counter could be considered as “spamming” by another.

Counters viewed positively by some could be viewed negatively by others.

Inevitably, some counters turned out to be doing well and some are doing badly or not so well.

Ultimately, one should draw his/her own conclusion on which counters to invest – and be solely responsible for the outcome of his/her investment decisions.

(vested)

I couldn't agree more. Welcome to our forum and I look forward to your postings and contributions as well !