UMS Holdings

[Boon]

TSMC reports 4.8% increase in 4Q14 net income

Rodney Chan, DIGITIMES, Taipei [Thursday 15 January 2015]

TSMC has announced consolidated revenues of NT$222.52 billion (US$6.96 billion), net income of NT$79.99 billion, and diluted earnings per share (EPS) of NT$3.08 (US$0.50 per ADR unit) for the fourth quarter ended December 31, 2014.

Year-over-year, fourth-quarter revenues increased 52.6% while net income and diluted EPS both increased 78.5%. Compared to third-quarter 2014, fourth-quarter results represent a 6.4% increase in revenues, and a 4.8% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, fourth-quarter revenues increased 3.7% from the previous quarter and increased 46.4% year-over-year.

Gross margin for the quarter was 49.7%, operating margin was 39.6%, and net profit margin was 35.9%.

Shipments of 20nm process technology accounted for 21% of total wafer revenues and 28nm accounted for 30% of total wafer revenues. Advanced technologies, defined as 28nm and 20nm technologies, accounted for 51% of total wafer revenues.

"The strong demand for TSMC's advanced technologies continued into the fourth quarter. Our 20-nanometer production was ramped-up at record speed and reached 21% of our fourth-quarter revenue," said Lora Ho, SVP and chief financial officer of TSMC. "Despite a slightly weaker demand due to seasonality, we anticipate a more favorable exchange rate in the first quarter which will moderate the impact from seasonality.

Ho said based on TSMC's current business outlook and exchange rate assumption of US$1 to NT$31.80, the company management expects overall performance for first quarter 2015 to be as follows: Revenues are expected to be between NT$221 billion and NT$224 billion; gross profit margin is expected to be between 48.5% and 50.5%; and operating profit margin is expected to be between 38.5% and 40.5%.

TSMC expects the capital expenditures for 2015 to be between US$11.5 billion and US$12 billion...............................................

http://www.digitimes.com/news/a20150115PR201.html
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China to Write $10B Check for Chips

Rick Merritt

1/14/2015

HALF MOON BAY, Calif. — China is expected to invest this year half the $20 billion fund it set aside to grow its semiconductor industry. As much as 70% of it is expected to target its domestic wafer fabs.

The initiative is the latest of several failed attempts over the past 25 years to make China a significant producer of chips. This time around the government is taking a more market-oriented approach that will give it a better shot at success, said one executive bidding for as much as half the funds.

"It's not clear if the new scheme will work, but I think it's the right direction," said Simon Yang, chief executive of XMC, one of China's two 12-inch fabs that hopes to get as much as $10 billion.

China imports as much as half the world's chips but produces less than 10% of them, an expensive gap state planners want to narrow. Since 1990, the government has bankrolled major chip efforts about every five years, spawning at least a half dozen fabs to date.

"So far you do not see any of them that can grow sustainably by themselves, meanwhile Taiwan and Korea have grown into powerhouses of advanced wafer manufacturing," said Yang in a talk at the Industry Strategy Symposium here.

Past attempts failed in part because state planners who funded them were too slow to make decisions and take risks needed to launch a chip factory. In addition, the funds were often spread too thin across many provincial projects.

"The objective this time is to focus the money in a few companies and locations," Yang said, although decisions on who gets what when have not yet been made.

In addition, the new approach focuses on letting professional managers control projects responding to market forces. In the past, the projects were sometimes beholden to committees of political leaders. However, the current fund insists upon 6% to 8% returns which may be difficult for the notoriously cyclical chip industry.

http://www.eetimes.com/document.asp?doc_id=1325289

(vested)

[Boon]

TSMC to prevail in FinFET segment in 2016 and beyond, says company chairman

Josephine Lien, Taipei; Steve Shen, DIGITIMES [Friday 16 January 2015]

Taiwan Semiconductor Manufacturing Company (TSMC) will gain a majority of market share in the FinFET segment in 2016 although it will lose out to rival Samsung Electronics in 2015, according to TSMC chairman Morris Chang.

TSMC will continue to lead in the FinFET segment in 2017, 2018 and beyond, Chang contended at the company's latest investors conference.

TSMC currently has a total of over 50 tape-out clients for its 16nm FinFET process and mostly will enter volume production in the third quarter of 2015, with sales of 16nm process to contribute to 5-10% of total revenues in the fourth quarter, TSMC said.

TSMC also noted that one client actually has begun producing chips using its 16nm FinFET process. However, most of other clients will use 16nm FinFET Plus process later.

However, Chang declined to comment on orders from individual clients including Apple and Qualcomm, particularly referring to recent market speculations indicating that Qualcomm has put a halt on trial production of its next generation chips built using a 16nm FinFET process at TSMC.

http://www.digitimes.com/news/a20150116PD207.html
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TSMC Selling ASML Stake for $1.5 Billion as Lockup Period Ends

By Elco van Groningen and Tim Culpan January 15, 2015

http://www.businessweek.com/news/2015-01...eriod-ends
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Samsung and Globalfoundries reportedly win majority of A9 orders

Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Thursday 15 January 2015]

http://www.digitimes.com/news/a20150115PD212.html
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What Will Change In Design For 2015?

Changing markets and new capabilities provided by semiconductor companies provide opportunities and challenges for design companies. What developments can we expect to see in 2015?

January 15th, 2015 - By: Brian Bailey

http://semiengineering.com/what-will-cha...-for-2015/
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Intel aims to ship at least 44 million tablet APs in 2015

Monica Chen, Taipei; Joseph Tsai, DIGITIMES [Friday 16 January 2015]

http://www.digitimes.com/news/a20150116PD210.html

(vested)

[Boon]

A Fabulous 2014 and the Road Ahead

By Denny McGuirk, SEMI President and CEO

After several tough years, 2014 brought strong growth to our industry. There is no shortage for new challenges, but looking back at 2014, it truly was fabulous. 2015’s outlook is promising and collaboration through the extended supply chain is increasingly being seen as an enabler as we look down the road towards 2020...............

2015 and 2020 – Looking Forward and Looking Ahead. With SEMI’s Industry Strategy Symposium (ISS) currently underway, we’ll soon have a deep update on the 2015 industry outlook. What seems safe to say is that 2015 will be another growth year. In 2015, there are likely at least ten fab projects with greater than one billion dollars in fab equipment spending each, including: Samsung Line 17-A (DRAM and Logic), Samsung Xian, TSMC with four fabs, Intel Ireland, GLOBALFOUNDRIES (New York), and Flash Alliance Fab 5, Phase 2. These projects should provide a range of opportunities for SEMI Members to grow and evolve their products to take on the demands of our changing industry. ............................................

http://www.semi.org/en/node/53851?id=sgurow0115
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7 Takeaways From ISS 2015
Rick Merritt
1/16/2015

1)
Samsung, GF winning 14/16 nm race
http://www.eetimes.com/document.asp?doc_...e_number=1

2)
Slow train to 3D ICs
http://www.eetimes.com/document.asp?_mc=...e_number=2

3)
Slow road to vertical NAND
http://www.eetimes.com/document.asp?_mc=...e_number=3

4)
Little said about EUV
http://www.eetimes.com/document.asp?_mc=...e_number=4

5)
Little said about EUV, Part 2
http://www.eetimes.com/document.asp?_mc=...e_number=5

6)
Living in the materials world
http://www.eetimes.com/document.asp?_mc=...e_number=6

7)
Faster, higher, cheaper?
http://www.eetimes.com/document.asp?_mc=...e_number=7
_______________________________________________________________________________________________________________

FeFET to extend Moore's law

January 16, 2015 // By R. Colin Johnson

http://www.electronics-eetimes.com/en/fe...3561&vID=8

(vested)

[Boon]

Ramifications of Cheap Oil on IC Market Growth to be Discussed at the Upcoming McClean Report 2015 Seminars!

The current price trend for oil gives credible upside potential to IC Insights’ current expectations for worldwide GDP and semiconductor market growth.

JANUARY 15, 2015

IC Insights believes that the price of oil will continue to be one of the most important factors to watch with regard to worldwide GDP and semiconductor market growth in 2015 and beyond.

http://www.icinsights.com/data/articles/...ts/749.pdf

[Boon]

IC Market CAGR Rebounds But Growth Remains Below 30-Year Average

Strong mobile market, IoT not enough to spur stronger IC growth increases.

JANUARY 21, 2015 By IC Insights

http://www.icinsights.com/data/articles/...ts/751.pdf

(vested)

[DCF]

Yes Boon,

But UMS share price don't seem to response accordingly. In fact, last year was a great year for the industry, as well as for Applied Material, but so some reasons, it did not flow through to UMS. Q4 result will be another point to prove UMS worth

[Boon]

Yes Boon,

But UMS share price don't seem to response accordingly. In fact, last year was a great year for the industry, as well as for Applied Material, but so some reasons, it did not flow through to UMS. Q4 result will be another point to prove UMS worth

Hi DCF,

From the management guidance, I do not expect 4Q2014 results to be great (please refer to post#971 & 972). Having said that, FCF and DPS for FY2014 as a whole could still turn out to be respectable IMO. Will see when the result is out next month.

If DPS for FY2014 is 5 cents, it translates to a dividend yield of 10%, based on share price of 50 cents.

A dividend yield of 10% is very attractive indeed for those who consider the AMAT/UMS relationship to be of low risk– but it may still appear “unattractive” or too “risky” for those who consider the AMAT/UMS relationship to be of high risk.

UMS’s worth to different investors could vary widely due to different views on the riskiness of the AMAT/UMS relationship. I suggest you read the earlier posts on these if you have not done so.

(vested)

[CityFarmer]

Yes Boon,

But UMS share price don't seem to response accordingly. In fact, last year was a great year for the industry, as well as for Applied Material, but so some reasons, it did not flow through to UMS. Q4 result will be another point to prove UMS worth

Hi DCF,

From the management guidance, I do not expect 4Q2014 results to be great (please refer to post#971 & 972). Having said that, FCF and DPS for FY2014 as a whole could still turn out to be respectable IMO. Will see when the result is out next month.

If DPS for FY2014 is 5 cents, it translates to a dividend yield of 10%, based on share price of 50 cents.

A dividend yield of 10% is very attractive indeed for those who consider the AMAT/UMS relationship to be of low risk– but it may still appear “unattractive” or too “risky” for those who consider the AMAT/UMS relationship to be of high risk.

UMS’s worth to different investors could vary widely due to different views on the riskiness of the AMAT/UMS relationship. I suggest you read the earlier posts on these if you have not done so.

(vested)

Yes, the uncertainty (or risk) of AMAT/UMS remains, till moment of the M&A settled, and integration done. The valuation is highly dependent on the progress. At the mean time, the dividend payout will provide the price support.

(vested)

[Boon]

STAMFORD, Conn., January 21, 2015 View All Press Releases

Samsung and Apple Continue to Lead as Top Global Semiconductor Customers in 2014, According to Gartner

Samsung and Apple Together Consumed 17 Percent of Total Semiconductor Demand in 2014

http://www.gartner.com/newsroom/id/2966829
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Will New Policy in China Trigger Big Changes?

By Dr. Adam He, director of Industry Research and Consulting, SEMI China

http://www.semi.org/en/node/53856?id=highlights
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The Semiconductor Future Looks Bright!

SEMI Market Forum Report: Industry growth and outlook, and the impact of the Internet of Things.

January 22nd, 2015 - By: Yoichiro Ando

http://semiengineering.com/the-semicondu...ks-bright/
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Semiconductors By The Numbers

5 economists offer their views on how the economy will shape up in the next few years and what that means for semiconductors.

January 22nd, 2015 - By: Ed Sperling

http://semiengineering.com/semiconductor...e-numbers/
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Fab Tool R&D And Ramen Noodles

The business model is broken in the fab tool and materials industry.

January 22nd, 2015 - By: Mark LaPedus

http://semiengineering.com/fab-tool-rd-a...n-noodles/
________________________________________________________________________________________________________________

Next Channel Materials?

What will replace silicon and when will it happen? There are no simple answers, but something has to be done.

January 22nd, 2015 - By: Mark LaPedus

http://semiengineering.com/industry-to-r...materials/
________________________________________________________________________________________________________________

Tech Talk: Photomask Challenges

A deep dive into challenges faced by mask shops now that lithography and process technology are out of sync.

January 22nd, 2015 - By: Mark LaPedus

http://semiengineering.com/tech-talk-pho...hallenges/

(vested)

[Boon]

Both billings and bookings figures for December look pretty good......

(vested)
________________________________________________________________________________________________________________

North American Semiconductor Equipment Industry Posts December 2014 Book-to-Bill Ratio of 0.98

SAN JOSE, Calif. — January 23, 2015 — North America-based manufacturers of semiconductor equipment posted $1.37 billion in orders worldwide in December 2014 (three-month average basis) and a book-to-bill ratio of 0.98, according to the December EMDS Book-to-Bill Report published today by SEMI. A book-to-bill of 0.98 means that $98 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in December 2014 was $1.37 billion. The bookings figure is 12.3 percent higher than the final November 2014 level of $1.22 billion, and is 1.1 percent lower than the December 2013 order level of $1.38 billion.

The three-month average of worldwide billings in December 2014 was $1.39 billion. The billings figure is 17.0 percent higher than the final November 2014 level of $1.19 billion, and is 3.1 percent higher than the December 2013 billings level of $1.35 billion.

"While three-month averages for both bookings and billings increased, billings outpaced bookings slightly, nudging the book-to-bill ratio slightly below parity," said SEMI president and CEO Denny McGuirk. "2015 equipment spending is forecast to remain on track for annual growth given the current expectations for the overall semiconductor industry."

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers. Billings and bookings figures are in millions of U.S. dollars

July 2014
1,319.1 (9.9% HIGHER than July 2013 billing of USD 1.20 billion)
1,417.1 (17.1% HIGHER than July 2013 booking of USD 1.21 billion)
1.07

Aug 2014
1,293.4 (19.5% HIGHER than August 2013 billing of USD 1.08 billion)
1,346.1 (26.5% HIGHER than August 2013 booking of USD 1.06 billion)
1.04

Sep 2014 (Final)
1,256.5 (23.4% HIGHER than Sept 2013 billing of USD 1.02 billion)
1,186.2 (19.8% HIGHER than Sept 2013 booking of USD 0.99 billion)
0.94

Oct 2014
1,184.2 (10.6% HIGHER than Oct 2013 billing of USD 1.07 billion)
1,102.3 (1.9% LOWER than Oct 2013 booking of USD 1.12 billion)
0.93

Nov 2014 (Final)
1,189.4 (7.1% HIGHER than Nov 2013 billing of USD 1.11 billion)
1,216.8 (1.9% LOWER than Nov 2013 booking of USD 1.24 billion)
1.02

Dec 2014 (prelim)
1,391.9 (3.1% HIGHER than Dec 2013 billing of USD 1.35 billion)
1,366.2 (1.1% LOWER than Dec 2013 booking of USD 1.38 billion)
0.98

http://www.semi.org/en/node/54341?id=highlights