UMS Holdings

[Boon]

Slow but positive 2016 followed by double digits in 2017
10 March 2016
http://www.semi.org/en/slow-positive-201...igits-2017
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[Xiaosaint]

Slow but positive 2016 followed by double digits in 2017
10 March 2016
http://www.semi.org/en/slow-positive-201...igits-2017
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Well, whether the estimated 2017 double digit growth will affect the bottomline of UMS still depends on whether AMAT continues their partnership with UMS.


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[BlueKelah]

Slow but positive 2016 followed by double digits in 2017
10 March 2016
http://www.semi.org/en/slow-positive-201...igits-2017
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Well, whether the estimated 2017 double digit growth will affect the bottomline of UMS still depends on whether AMAT continues their partnership with UMS.


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think its been discussed before but AMAT is rolling in profits and no merger or acquisition that would affect company structure, so very unlikely partnership is not renewed. There is also quite a bit of barrier for switching in such a highly technical field of semicon.

Just like Namlee and Carrier  and  New Toyo and BAT, usually the big guys from overseas stick with local asean company as it is not so easy to find good trustworthy management you can depend on and also takes some time to certify and quality control their production processes.

Would only start worrying about partnership only if something big like M&A happen at AMAT level.

[Boon]

North American Semiconductor Equipment Industry Posts February 2016 Book-to-Bill Ratio of 1.05

SAN JOSE, Calif. — March 17, 2016 — North America-based manufacturers of semiconductor equipment posted $1.26 billion in orders worldwide in February 2016 (three-month average basis) and a book-to-bill ratio of 1.05, according to the February EMDS Book-to-Bill Report published today by SEMI.  A book-to-bill of 1.05 means that $105 worth of orders were received for every $100 of product billed for the month.

SEMI reports that the three-month average of worldwide bookings in February 2016 was $1.26 billion. The bookings figure is 3.7 percent lower than the final January 2016 level of $1.31 billion, and is 3.9 percent lower than the February 2015 order level of $1.31 billion.

The three-month average of worldwide billings in February 2016 was $1.20 billion. The billings figure is 1.3 percent lower than the final January 2016 level of $1.22 billion, and is 5.9 percent lower than the February 2015 billings level of $1.28 billion.

"The book-to-bill ratio has remained at or above parity for three months in a row,” said Denny McGuirk, president and CEO of SEMI. “The data indicate an improved spending trend in the second half of the year, driven by 3D NAND and 10nm investments.”...................................................................................

http://www.semi.org/en/north-american-se...-ratio-105
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[Boon]

IDC Forecasts Worldwide Shipments of Wearables to Surpass 200 Million in 2019, Driven by Strong Smartwatch Growth and the Emergence of Smarter Watches 
17 Mar 2016 , by IDC
https://www.idc.com/getdoc.jsp?containerId=prUS41100116
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Toshiba to Invest $3.2 Billion on 3D Flash Memory Chip Factory
March 17, 2016 
http://www.bloomberg.com/news/articles/2...ip-factory
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TSMC Readies 7nm Chip Ecosystem, Infrastructure for 2017
16 March 2016
http://semimd.com/blog/2016/03/16/tsmc-r...-for-2017/
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[Boon]

Slow but positive 2016 followed by double digits in 2017
10 March 2016
http://www.semi.org/en/slow-positive-201...igits-2017
______________________________________________________________________________________________________________________

Well, whether the estimated 2017 double digit growth will affect the bottomline of UMS still depends on whether AMAT continues their partnership with UMS.


Sent from my iPhone using Tapatalk

think its been discussed before but AMAT is rolling in profits and no merger or acquisition that would affect company structure, so very unlikely partnership is not renewed. There is also quite a bit of barrier for switching in such a highly technical field of semicon.

Just like Namlee and Carrier  and  New Toyo and BAT, usually the big guys from overseas stick with local asean company as it is not so easy to find good trustworthy management you can depend on and also takes some time to certify and quality control their production processes.

Would only start worrying about partnership only if something big like M&A happen at AMAT level.

True, UMS's manufacturing contract with AMAT is expiring in mid-2017.  
 
Would the contract be renewed at expiry?
 
This has always been the greatest concern among UMS investors.
 
The non-renewal of the contract at expiry is the greatest downside risk that could happen to UMS, but what is the probability of this happening?
 
No doubt, this topic has been discussed many times before, but the semiconductor landscape has changed rapidly since. Perhaps, it is worthwhile to re-visit it again, as we are drawing nearer to the expiry-date.
 
Question:
 
Amid the changing backdrop or landscape, what are the factors that have changed (or not changed) and that could impact positively (or negatively) on the probability of the manufacturing contract being renewed (or not renewed) at expiry?
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[BlueKelah]

Nothing much has changed since gfc. IMHO, AMAT still selling machines that make semiconductor stuff and getting more market share, UMS been providing good partnership producing components for amat.

Semiconductor sector may be flattish or slight contraction should we get worsen global recession or another gfc but moving to electric cars and cloud computing and other tech stuff, demand will still be there and grow.

Only thing is AMAT and Andy may have sold some shares which more or less is priced in already and cause for concern.

It will be a PITA for amat to not renew with UMS. At the moment they are so busy with selling to companies ramping up the new technology in Taiwan and China and swimming in profits, I doubt they have time to bother to consider a non renewal. A switch will also hit their production and affect profits for a few quarters.

The fear of nonrenewal is also a good chance to get in during dips this year as any mention of contract renewal will mean share price BOOM next year.

Perhaps someone can go ask management or even email AMAT to ask.[emoji2]



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[Boon]

Global Semiconductor Sales Dip Slightly in February
SALES DECREASE 3.2 PERCENT MONTH-TO-MONTH AND 6.2 PERCENT YEAR-TO-YEAR 
Published Monday, April 4, 2016 8:00 am
by Dan Rosso

WASHINGTON—April 4, 2016—The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing, design, and research, today announced worldwide sales of semiconductors reached $26.0 billion for the month of February 2016, a decrease of 3.2 percent compared to the previous month’s total of $26.9 billion and 6.2 percent lower than the February 2015 total of $27.7 billion. Sales into the Americas fell sharply, decreasing 19.3 percent year-to-year, while year-to-year sales into China increased 3.5 percent. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. 

“Global semiconductor sales slipped somewhat in February, due to normal seasonal trends, demand softening, and unfavorable macroeconomic conditions,” said John Neuffer, president and CEO, Semiconductor Industry Association. “Most regional markets have struggled to overcome these headwinds, and sales have dipped across the majority of semiconductor product categories.”

Regionally, sales decreased nearly across the board: China (-4.6 percent month-to-month/+3.5 percent year-to-year), Europe (-0.9 percent/-6.3 percent), Japan (-0.8 percent/-3.5 percent), Asia Pacific/All Other (-0.7 percent/-6.3 percent), and the Americas (-7.0 percent/-19.3 percent). 

Sales also decreased across most major semiconductor product categories, with the notable exception of microprocessors, which increased year-to-year by 3.4 percent.

To find out how to purchase the WSTS Subscription Package, which includes comprehensive monthly semiconductor sales data and detailed WSTS Forecasts, please visit http://www.semiconductors.org/industry_statistics/wsts_subscription_package/. 

February 2016 chart and graph

http://www.semiconductors.org/news/2016/..._february/
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[Boon]

AR2015 is out.
 
Interestingly, Morgan Stanley Asia still holds 5.55% stake as reported in AR2015 (as compared to 5.33% stake as reported in AR2014) - it used to hold 6.44% (as reported in AR2013) of which 6% was for AMAT.
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[BlueKelah]

Doing well this month despite poorer outlook for semicon. looks like the dividend yield seekers are jumping in for the three cents.

V



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