UMS Holdings

The only thing I'm concerned about is if the selldown of UMS shares by Applied Materials signifies a deterioration of the UMS-AMAT relationship. If so, would AMAT ditch UMS.

(Vested)


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(16-10-2014, 09:21 AM)Xiaosaint Wrote: The only thing I'm concerned about is if the selldown of UMS shares by Applied Materials signifies a deterioration of the UMS-AMAT relationship. If so, would AMAT ditch UMS.

(Vested)


Sent from my iPhone using Tapatalk

I suggest you to read the previous posts in this thread, to get a good understanding of the concern. In short, the concern is valid, but it might not happen in near term.

Enjoy.

http://m.wsj.com/articles/tsmc-posts-rec...7?mobile=y

October 16, 2014 6:25 AM
TSMC Posts Record Profit
TSMC Executives Upbeat After Profit Jumps on Massive Computing-Chip Order for Apple’s New iPhones


Taiwan Semiconductor Manufacturing Co.’s net profit rose to a new high in the third quarter. Photo: Agence France-Presse/Getty Images
By ARIES POON
TAIPEI—After Taiwan Semiconductor Manufacturing Co. logged its most profitable quarter, executives remain upbeat about how Apple Inc. and other mobile-device makers will propel its revenues even higher in coming years.
TSMC, the world’s largest contract chip maker by revenue, said Thursday that net profit in the three months ended Sept. 30 totaled 76.34 billion New Taiwan dollars (US$2.51 billion). It was up 47% from NT$51.95 billion a year earlier, beating its previous record of NT$59.70 billion in the second quarter and exceeding analysts’ estimates. Revenue rose 29% from a year earlier to NT$209.05 billion, also a record.


Although the explosive growth of global smartphone and tablet sales has waned, TSMC’s increasing market share due to technological advances has helped the company grow its earnings at rates stronger than most chip makers.
Chief Financial Officer Lora Ho predicted revenue in the current quarter of NT$217 billion to NT$220 billion—as much as 5% higher than the previous quarter and possibly another record. It is largely in line with analysts’ estimates.
“If we take away the contribution from 20-nanometer [a process technology adopted by the facility that produces microprocessors for iPhones], the fourth-quarter revenue will probably be down by [a rate] close to double digits,” Mark Liu, one of the company’s two chief executives, said during an investor conference in Taipei Thursday.
Revenue from the 20-nanometer facility will rise to 20% of total revenue in the fourth quarter, from 9% in the third quarter, the company said.
Last year, the Taiwan-based chip maker was among the first to migrate to the 20-nanometer chip-process technology from the less advanced 28-nanometer process. The transition allowed it to produce more powerful chips than most rivals at lower costs, and helped it beat out Samsung Electronics Co. for the order from the iPhone maker. TSMC started shipping chips to Apple in late June.
This lead lifted not only TSMC’s revenues. The boost from Apple is also apparent among many Taiwanese companies which churn out components for the Cupertino, Calif., company. Hon Hai Precision Industry Co., commonly known as Foxconn, and Largan Precision Co. have also reported strong earnings due to business from Apple.
Besides Apple, TSMC also makes microprocessors for hundreds other clients including Qualcomm Inc. More than half of TSMC’s third-quarter revenue came from producing chips for smartphones and tablets.
At the same conference, TSMC’s other Chief Executive C.C. Wei said the company expects to start mass-producing with the next-generation 16-nanometer process technology by the end of the second quarter of next year. It will be about one quarter earlier than the company’s previous forecast, but will still be months behind Intel Corp. and Samsung.
“Right now, more than 1,000 engineers are working on that. Our experience in the 20-nanometer process helps us ramp up the 16-nanometer much faster than we expected,” Mr. Wei said, adding revenue from this process technology will kick in during the fourth quarter of 2015.
In a bid to regain the lead in technological advance, TSMC Chairman Morris Chang said in a recent interview that the company has committed a “blank check” to developing the finer 10-nanometer process technology “in the shortest time possible.” The Taiwanese company plans to deliver a prototype 10-nanometer chip based on ARM Holdings PLC’s design in the fourth quarter of next year.
Ms. Ho said the company plans to spend more than US$10 billion next year to develop and build advanced facilities. The company has earmarked US$9.6 billion as capital expenditure for this year.
Capacity will grow 12% this year, higher than the company’s previous target, Ms. Ho said. Capacity expansion will likely be at a similar rate next year, she added.
A surprise earnings warning last week from Microchip Technology Inc. has recently clouded the outlook for the semiconductor sector.
While many chip makers don’t share the pessimism of the Arizona maker of computer chips, analysts say weaker-than-expected demand for electronics remains a possibility amid the uneven economic growth of China and the U.S.
“Demand from our customers doesn’t validate the comment from Microchip,” said Mr. Liu. “Demand from China is still normal, maybe a little deviation from seasonal [levels], but demand for fourth-generation [mobile application] and telecom infrastructure remains aggressive.”

(17-10-2014, 12:17 AM)Tiggerbee Wrote: http://m.wsj.com/articles/tsmc-posts-rec...7?mobile=y

October 16, 2014 6:25 AM
TSMC Posts Record Profit
TSMC Executives Upbeat After Profit Jumps on Massive Computing-Chip Order for Apple’s New iPhones


Taiwan Semiconductor Manufacturing Co.’s net profit rose to a new high in the third quarter. Photo: Agence France-Presse/Getty Images
By ARIES POON
TAIPEI—After Taiwan Semiconductor Manufacturing Co. logged its most profitable quarter, executives remain upbeat about how Apple Inc. and other mobile-device makers will propel its revenues even higher in coming years.
TSMC, the world’s largest contract chip maker by revenue, said Thursday that net profit in the three months ended Sept. 30 totaled 76.34 billion New Taiwan dollars (US$2.51 billion). It was up 47% from NT$51.95 billion a year earlier, beating its previous record of NT$59.70 billion in the second quarter and exceeding analysts’ estimates. Revenue rose 29% from a year earlier to NT$209.05 billion, also a record.


Although the explosive growth of global smartphone and tablet sales has waned, TSMC’s increasing market share due to technological advances has helped the company grow its earnings at rates stronger than most chip makers.
Chief Financial Officer Lora Ho predicted revenue in the current quarter of NT$217 billion to NT$220 billion—as much as 5% higher than the previous quarter and possibly another record. It is largely in line with analysts’ estimates.
“If we take away the contribution from 20-nanometer [a process technology adopted by the facility that produces microprocessors for iPhones], the fourth-quarter revenue will probably be down by [a rate] close to double digits,” Mark Liu, one of the company’s two chief executives, said during an investor conference in Taipei Thursday.
Revenue from the 20-nanometer facility will rise to 20% of total revenue in the fourth quarter, from 9% in the third quarter, the company said.
Last year, the Taiwan-based chip maker was among the first to migrate to the 20-nanometer chip-process technology from the less advanced 28-nanometer process. The transition allowed it to produce more powerful chips than most rivals at lower costs, and helped it beat out Samsung Electronics Co. for the order from the iPhone maker. TSMC started shipping chips to Apple in late June.
This lead lifted not only TSMC’s revenues. The boost from Apple is also apparent among many Taiwanese companies which churn out components for the Cupertino, Calif., company. Hon Hai Precision Industry Co., commonly known as Foxconn, and Largan Precision Co. have also reported strong earnings due to business from Apple.
Besides Apple, TSMC also makes microprocessors for hundreds other clients including Qualcomm Inc. More than half of TSMC’s third-quarter revenue came from producing chips for smartphones and tablets.
At the same conference, TSMC’s other Chief Executive C.C. Wei said the company expects to start mass-producing with the next-generation 16-nanometer process technology by the end of the second quarter of next year. It will be about one quarter earlier than the company’s previous forecast, but will still be months behind Intel Corp. and Samsung.
“Right now, more than 1,000 engineers are working on that. Our experience in the 20-nanometer process helps us ramp up the 16-nanometer much faster than we expected,” Mr. Wei said, adding revenue from this process technology will kick in during the fourth quarter of 2015.
In a bid to regain the lead in technological advance, TSMC Chairman Morris Chang said in a recent interview that the company has committed a “blank check” to developing the finer 10-nanometer process technology “in the shortest time possible.” The Taiwanese company plans to deliver a prototype 10-nanometer chip based on ARM Holdings PLC’s design in the fourth quarter of next year.
Ms. Ho said the company plans to spend more than US$10 billion next year to develop and build advanced facilities. The company has earmarked US$9.6 billion as capital expenditure for this year.
Capacity will grow 12% this year, higher than the company’s previous target, Ms. Ho said. Capacity expansion will likely be at a similar rate next year, she added.
A surprise earnings warning last week from Microchip Technology Inc. has recently clouded the outlook for the semiconductor sector.
While many chip makers don’t share the pessimism of the Arizona maker of computer chips, analysts say weaker-than-expected demand for electronics remains a possibility amid the uneven economic growth of China and the U.S.
“Demand from our customers doesn’t validate the comment from Microchip,” said Mr. Liu. “Demand from China is still normal, maybe a little deviation from seasonal [levels], but demand for fourth-generation [mobile application] and telecom infrastructure remains aggressive.”

I certainly do not share the pessimism of Microchip Technology. Ha-ha !

if TSMC, AMAT's No:1 customer, is commiting "blank check" to pursue 10 nm process technology - that is good news - a BIG positive, I reckon.

(Vested)

Share price just plunged more than 7% to as low as 43 cts. Short selling or just nervous investors selling?

I bought some at 43-43.5 cts. Counter party was Phillip and DMG.

Microchip produces microcontrollers, peripherals and mixed signal chips that are used in automotive and automation systems.
So, I wonder how it will affect the high end chip market.
I doubt there is even a microchip chip in a handphone. All arm based processors will cramped all required peripherals into the custom chips.

Going forward, low end peripheral chips will continue to be cannibalized by ASICs.

(17-10-2014, 03:02 PM)yeokiwi Wrote: Microchip produces microcontrollers, peripherals and mixed signal chips that are used in automotive and automation systems.
So, I wonder how it will affect the high end chip market.
I doubt there is even a microchip chip in a handphone. All arm based processors will cramped all required peripherals into the custom chips.

Going forward, low end peripheral chips will continue to be cannibalized by ASICs.

When talk about chip, the only chip i could understand is Pringles.

Interesting article:

The End of the Shrink

Nobody will say that Moore's Law is over. But it's starting to get really complicated.

By : Rachel Courtland

http://www.abmassociation.com/images/Nea...0Entry.pdf

(vested)

(17-10-2014, 02:51 PM)Tiggerbee Wrote: Share price just plunged more than 7% to as low as 43 cts. Short selling or just nervous investors selling?

I bought some at 43-43.5 cts. Counter party was Phillip and DMG.

Based on 2013 AR, about 3.8% stake was held under the custodian of Phillips Securities. Their stake probably had been reduced significantly since the correction from the 77c peak. I was catching the falling knife at 43-43.5c, haha.. Looks attractive from a technically oversold perspective with RSI below 10%.

(Trading vested)

No:1 Customer (TSMC) and No: 2 Customer (Samsung) of AMAT are spending BIG to stay ahead of the game.

(Vested)
________________________________________________________________________________________________________________

Samsung Invests Big to Maintain Leadership, Support New Markets
Leadership in smartphones, Smart TVs, and tablet PCs spurs big investment in new IC fab.

OCTOBER 15, 2014

By IC Insights

Samsung recently announced plans to build a new, cutting-edge wafer fab—a $14.7 billion investment for the company that will be located in Pyeongtaek, a city south of Seoul. The new fab, slated to begin production in 2H17, will add to Samsung’s current impressive compilation of wafer fabs (Figure 1) as it seeks to maintain its leading position in memory IC sales and expand its system leadership beyond smartphones, Smart TVs, and tablets. Investing large is not new to
Samsung—it has allocated at least $10 billion per year on semiconductor capital expenditures since 2010 (Figure 2), and has accounted for 17-21% of total industry capital expenditures each year since then..........................................................

http://www.icinsights.com/data/articles/...ts/727.pdf
________________________________________________________________________________________________________________

Gartner Says Worldwide Semiconductor Capital Spending to Increase by More Than 11 Percent in 2014

Memory Manufacturers Enjoy Strong Pricing Environment, Setting Stage for Renewed Spending Growth

STAMFORD, Conn., October 16, 2014

Worldwide semiconductor capital spending is projected to total $64.5 billion in 2014, an increase of 11.4 percent from 2013 spending of $57.8 billion, according to Gartner, Inc. Capital equipment spending will increase 17.1 percent in 2014, driven by strong memory average selling prices and increased demand for consumer products (see Table 1).

For 2014, Gartner's forecast for semiconductor equipment has been increased slightly from the previous forecast. Longer term, Gartner expects modest growth through the semiconductor cycle, with just a modest pause in the equipment market expected in 2016.

"While capital spending outperformed equipment spending in 2013, the reverse will hold true for 2014," said David Christensen, senior research analyst at Gartner. "Total capital spending will grow 11.4 percent in 2014, compared with 7.1 percent in our prior forecast — a result of Samsung increasing its announced spending plans to $14 billion. Equipment spending will increase 17.1 percent, as manufacturers pull back on new fab construction and concentrate on ramping up new capacity instead."

In recent years, the equipment industry has realized significant consolidation, as major vendors have acquired complementary and competitive companies. As equipment advancements will lead to higher development costs, the trend of industry consolidation should be expected to continue.............................................................

http://www.gartner.com/newsroom/id/2876317
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Intelligent Systems to Exceed $1 Trillion in 2019 as the Market Continues to Disrupt Traditional Industries Including Manufacturing, Energy, and Transportation, According to IDC

16 Oct 2014

IDC study forecasts that the Intelligent Systems market will ship over two billion systems in 2019; with the Industrial, Transportation, Smart Home, and Energy segments growing fastest.

SAN MATEO, Calif., October 16, 2014 – The deployment of billions of advanced systems across major industries over the next five years will be critical to enabling the vision around intelligent systems, according to a new International Data Corporation (IDC) study, Worldwide Embedded and Intelligent Systems 2014-2019 Market Update.

The market for intelligent systems—defined by microprocessors, connectivity, and high-level operating systems/UI in systems excluding PCs, phones, servers, and tablets—will grow from 1.4 billion units and $755 billion in revenue this year to over 2.2 billion units and over $1 trillion in revenue by 2019, according to the IDC report.

"Intelligent systems continue to play a critical role in disrupting traditional industries as connectivity, sensors, and HW SW intelligence enables the ability to drive more value for applications and data," said Mario Morales, Vice President of IDC's Enabling Technologies and Semiconductors research group. "The value chain for the embedded market is broad and fragmented across a large set of industries that span decades of development and commercialization. Solving business-specific challenges across each industry with technology and data integration will ultimately dictate the cadence of adoption and help crystallize the opportunity over the next five years."

In 2019, intelligent systems will represent over one fourth of a total available market (TAM) of more than 8.5 billion systems in the combined intelligent and embedded systems market. Among the top-growing segments are driver management and fuel management systems in the transportation sector, smart wearables and smart home lighting systems in the consumer sector, digital pathology and virtual metrology systems in the healthcare sector, and industry-specific gateway products in the industrial sector.

For this forecast update, IDC expanded the embedded and intelligent systems and microprocessor coverage to include 263 system segments, in areas such as energy, smart building, smart home, transportation, and wearables to provide more insight on the technology adoption of each market.

IDC launches the new report in conjunction with our participation in the upcoming fourth annual Intelligent Systems Tech Forum in Menlo Park, California on October 29th and 30th. Resonating with major themes of the report, the conference will feature exclusive keynotes and sessions on the Industrial Internet, Connected Car, Wearables, and Semiconductors including keynotes from IDC's Mario Morales, GE's Niloy Sanyal, and Morgan Stanley's Mark Edelstone. The Forum also includes an exclusive panel of Chinese companies sponsored by Blue Focus that will discuss innovation, future government policy, and the thriving ecosystem in China and how the region is driving disruption in design, manufacturing, and usage models across a wide range of systems from infrastructure, automotive, to wearables. Visit www.intelligentsystemstechforum.com to find out more and register.

The IDC report, Worldwide Embedded and Intelligent Systems 2014-2019 Market Update (IDC #252046, forthcoming), sizes and forecasts the traditional embedded systems and intelligent systems and microprocessor markets segmented across a broad set of industries and over 250 system categories. The study also provides the context of Intelligent Systems within the broader vision of the Internet of Things (IoT) by IDC.

http://www.idc.com/getdoc.jsp?containerId=prUS25204914