UMS Holdings

[Nick]

One question.

Understand that UMS revenue mainly come from Singapore. Who are their customers here? Or does Applied Material operate from Singapore?

Thanks in advanced.

Over 90% of their semiconductor revenue comes from Applied Materials. The latter factory is very close to UMS facility in Changi. According to the article below, they expect '50% of our global semiconductor equipment supply to flow through this Center in the next few years'.

http://www.appliedmaterials.com/newsroom...-equipment

[NTL]

One question.

Understand that UMS revenue mainly come from Singapore. Who are their customers here? Or does Applied Material operate from Singapore?

Thanks in advanced.

Over 90% of their semiconductor revenue comes from Applied Materials. The latter factory is very close to UMS facility in Changi. According to the article below, they expect '50% of our global semiconductor equipment supply to flow through this Center in the next few years'.

http://www.appliedmaterials.com/newsroom...-equipment

Thanks!

In this case, after UMS shift their operations to Penang, will the loss of "close proximity" with main client affect it in anyway? Things usually works better when they are side-by-side.

[Nick]

One question.

Understand that UMS revenue mainly come from Singapore. Who are their customers here? Or does Applied Material operate from Singapore?

Thanks in advanced.

Over 90% of their semiconductor revenue comes from Applied Materials. The latter factory is very close to UMS facility in Changi. According to the article below, they expect '50% of our global semiconductor equipment supply to flow through this Center in the next few years'.

http://www.appliedmaterials.com/newsroom...-equipment

Thanks!

In this case, after UMS shift their operations to Penang, will the loss of "close proximity" with main client affect it in anyway? Things usually works better when they are side-by-side.

If I recall correctly, the high end jobs will be done in Singapore while the volume manufacturing will be done in Penang. It was highlighted in the AGM that operating in Penang was more cost effective (cheaper utilities, land, labour, tax-free etc) and will hence benefit both parties.

[a74henry]

I have attended the last AGM and the founder has confirmed that this will not be an issue with Applied Material.

[Boon]

It looks like "lithography" is giving ways to precision engineering (deposition and etch) as more flash memory chip manufacturers adopt the 3D NAND technology - positive for AMAT (and its competitor - Lam Research)

_____________________________________________________________________________________________________________________________________________

NAND flash vendors gearing up for 3D chips

Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Tuesday 27 August 2013]

Samsung Electronics, Toshiba and Micron Technology have recently disclosed their 3D NAND flash memory developments. The vendors' 3D NAND chips are expected to be in early-stage production during 2014-2015, followed by the commercial production stage in later years, market sources believe.

However, Samsung's 3D NAND strategy and the market adoption of new end products employing 3D NAND chips will play the key factors to determine when the new technology is ready for commercial-scale production, according to the sources.

Samsung is currently ahead of rivals Toshiba and Micron in the development of 3D NAND flash memory. The Korea-based vendor claimed that it has begun mass producing 3D NAND chips for consumer electronics and enterprise applications such as embedded NAND storage and solid state drives (SSDs) in August 2013.

Samsung's new 12-inch fab in Xian, northwestern China reportedly will also accommodate the 3D NAND production. Samsung is set to run the new NAND flash fab sometime in 2014.

Toshiba recently broke ground for a new fab at its Yokkaichi operations, Japan, with the new capacity expected to come online in summer 2014. The facility will produce 3D NAND memory, as well as chips on more advanced node technologies.

Toshiba is expected to enter mass production of 3D NAND chips in 2015, industry sources have estimated. The Japan-based firm reportedly is delivering samples of 3D NAND already.

Micron CEO Mark Durcan revealed previously that the company would start providing samples of 3D NAND chips to customers in the first quarter of 2014

http://www.digitimes.com/news/a20130827PD200.html

[KopiKat]

Some points from TheEdge this week,

- UMS produces only one product in Applied Materials's line-up, the Endura (wafer transfer module with nine chambers and robotic arms), which can be used for a number of processes (ALD, CVD, PVD & ECD).

ALD : Atomic Layer Deposition
CVD : Chemical Vapour Deposition
PVD : Physical Vapour Deposition
ECD : Electro Chemical Deposition

- Aggressively looking for business opportunity within Applied Materials.

- Currently exploring opportunity to produce another product for Applied Materials using additional capacity from its factory in Penang.

- UMS maintains 20% of idle capacity in their factory for last minute orders, which can command higher premiums.

- UMS owns the 500,000 sqft production facility in Penang and has fully paid for all its production equipments.

- Expecting the move to be completed by 2015.

- UMS maintains a lean head count. Example cited is Mr Luong (CEO) says his BlackBerry is his secretary.

- Eventually hopes to produce their own product and create IP. Looking for M&A targets to achieve this but may take some time to find the right company.

[Drizzt]

this ringghit weakness directly works in their favor. their margins will look so much better. of course this could be short term.

[NTL]

Yesterday's Wan Bao mentioned that SGD could reach MYR2.75 in 3-6months time. Good for them if sales are conducted in SGD or USD.

[Boon]

TSMC to raise 2014 capex to record US$11 billion, says report

cnYES; Jessie Shen, DIGITIMES [Monday 2 September 2013]

Taiwan Semiconductor Manufacturing Company (TSMC) is expected to boost volume output of 20nm chips by increasing its capex for the year to a record US$11 billion, the Chinese-language website cnYES.com quoted a JP Morgan report as saying.

TSMC will increase its 20nm capacity to 70,000 12-inch wafers per month by the end of 2014, in order to meet demand from its fabless clients including Qualcomm, MediaTek, and Apple, the report said.

TSMC expects its 20nm process to enter volume production in early 2014. The foundry moved the node to risk production in the first quarter of 2013.

http://www.digitimes.com/news/a20130902PB200.html

(vested)

[Boon]

Fab Equipment Spending Up 25% in 2014

SAN JOSE, Calif. — September 3, 2013 — The SEMI World Fab Forecast indicates that capital expenditure for semiconductor fab equipment spending will increase to US$ 39.8 billion in 2014, the highest on record. Semiconductor revenue has improved in 2013 compared to 2012 and early forecasts for 2014 project revenue growth averaging about 8 percent. Semiconductor companies have adjusted their capital expenditure accordingly, and the SEMI report tracks over 200 projects, with details revealing that fab equipment spending is expected to decline by 1 percent in 2013 (to $31.8 billion), but increase by 25 percent in 2014, including new, used and internally manufactured in-house equipment ................................

http://www.semi.org/en/node/46941?id=highlights

(vested)
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