UMS Holdings

[valuebuddies]

We see 70c finally after years, apparently Mr Luong is a good businessman but probably not a smart investor.

[Nick]

With the end of CEO Andy share sales, the price has recovered strongly in the past few days. The prospects does look promising for 1H 2014.

(Vested)

[heifien91]

After these few years of the CEO reducing his stakes, I guess shareholders have started becoming quite indifferent to his actions. As compared to before, a reduction in his stake we wouldve seen quite a period of the share price being depressed.

(Vested)

SG Value Investor
http://www.sgvalueinvestor.wordpress.com

[Boon]

IC Market for Total Personal Computing Systems to Jump 6% in 2014
Three years of market growth forecast to offset past three years of sales declines.

MARCH 12, 2014 Research Bulletin by IC Insights

Following three consecutive years of declines, the IC market for total personal computing systems is forecast to increase 6% to $77.7 billion in 2014 and climb another 6% in 2015 to $82.1 billion, which will be just shy of the record-high $82.3 billion set in 2010, according to the 2014 edition of IC Insights’ IC Market Drivers—A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits. A new record high is forecast to be set in 2016, when sales reach $88.0 billion.............................

http://www.icinsights.com/data/articles/...ts/656.pdf

(vested)

[Boon]

Interesting to note the high gross margin and operating margin of TSMC, a Pure-Play Foundry - Oligopoly at work - Ha-ha !
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TSMC revises upward 1Q14 guidance

Steve Shen, DIGITIMES, Taipei [Thursday 13 March 2014]

Taiwan Semiconductor Manufacturing Company (TSMC) has revised upward its guidance for the first quarter of 2014 and also provided additional comments on its outlook for the quarter.

First-quarter revenues will reach NT$147 billion (US$4.84 billion), up 0.8% sequentially compared to a 5-7% decline forecast previously.

Meanwhile, first-quarter gross margin is expected to top 47% compared to 44.5-46.6% forecast in mid-January, while operating margin is expected to reach 35%, up from the previous target of 32-34%, TSMC said.

"The upside to the first quarter guidance comes mainly from the increases in demand for our 28nm wafers and from customers' active restocking of their inventories," said Lora Ho, senior vice president and CFO of TSMC. "The first quarter upside is perhaps a good prelude to an already anticipated strong year."

TSMC posted revenues of NT$98.26 billion in the first two months of 2014, reaching 66.8% of its revised first-quarter sales target.

http://www.digitimes.com/news/a20140313PB200.html

(vested)

[Boon]

Semi material, equipment suppliers brace for strong sales

Patty Wang, Taipei; Steve Shen, DIGITIMES [Wednesday 19 March 2014]

Semiconductor material and equipment suppliers are poised for brisk sales in the months ahead, buoyed by a number of factors, including an upward revision of Taiwan Semiconductor Manufacturing Company's (TSMC's) first-quarter guidance and high capacity utilization rates at 8- and 12-inch fabs in Taiwan, according to industry sources.

Thanks to a surge in orders from chipset makers including Qualcomm, Broadcom and MediaTek, TSMC now expects its sales to grow 0.8% sequentially compared to a 5-7% drop forecast previously, the sources noted.

TSMC may see its revenues expand 20% sequentially in the second quarter of 2014, the sources estimated.

UMC has also benefited from the ongoing recovery in the semiconductor industry, with the capacity utilization rates of its 8- and 12-inch fabs running high, added the sources.

Semiconductor material distributor Topco Scientific has seen its shipments of silicon wafers, photoresists and quartz tubes to TSMC and UMC increase sharply and is expected to see its March revenues surpass the NT$1.39 billion (US$45.68 million) recorded in January, said the sources.

Fellow distributor Wah Lee Industrial is also expected to perform better in the first quarter of 2014 as compared to a year earlier, buoyed by orders for photoresists used in the 20nm process node and other chemicals, revealed the sources.

Feedback Technology, which distributes equipment and parts for semiconductor and optoelectronics industries, has also enjoyed a rebound in orders for ion implantation materials from Taiwan's top-2 foundry houses, added the sources.

http://www.digitimes.com/news/a20140319PD202.

(vested)

[Boon]

It is interesting to note that :

" Singapore’s semiconductor industry has grown remarkably over the last forty years to become one of the most advanced hubs in the region. Today the semiconductor industry constitutes much of Singapore's economic growth, contributing over 5 percent of the city-state’s GDP and 37 percent of all R&D spending by the manufacturing industry. The industry employs approximately 42,000 people. "
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Enabling Mobility for IoT with Advanced Semiconductor Technology — at SEMIcon Singapore 2014

SINGAPORE — 19 March 2014 — SEMIcon Singapore, Southeast Asia's largest annual gathering for the semiconductor manufacturing industry, will focus on the advanced technology developments to enable mobility for the Internet of Things (IoT). SEMIcon Singapore 2014 (www.semiconsingapore.org) runs 23-25 April, at the Marina Bay Sands Expo and Convention Center.....................................

http://www.semi.org/en/node/49291?id=highlights

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International IDMs placing short lead-time orders at Taiwan wafer foundry houses

Cage Chao, Taipei; Steve Shen, DIGITIMES [Wednesday 19 March 2014]

International IDMs have joined IC design companies to place wafer orders at Taiwan foundry houses due to an upsurge in demand for IC parts from downstream device vendors, according to industry sources.

Most IDMs have foundry houses of their own and consider outside foundry houses as secondary sources of capacity in cases when unexpected market fluctuations occur, said the sources.

Buoyed by orders from IDMs and IC design houses, Taiwan-based foundry houses are expected to see their sales momentum continue into the second quarter of 2014, the sources added.

Some Taiwan-based LCD driver IC vendors indicated that the lead time for current wafer orders has extended to the third quarter.

http://www.digitimes.com/news/a20140319PD211.html

(Vested)

[Boon]

Bookings in January and February 2014 are 19% and 20% HIGHER than the corresponding periods last year - it looks like we are on course for a STRONGER 1Q2014, which potentially could even surpass that of 4Q2013 - the best quarterly UMS result in 2013 .

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North American Semiconductor Equipment Industry Posts February 2014 Book-to-Bill Ratio of 1.00

SAN JOSE, Calif. — March 20, 2014 — North America-based manufacturers of semiconductor equipment posted $1.29 billion in orders worldwide in February 2014 (three-month average basis) and a book-to-bill ratio of 1.00, according to the February EMDS Book-to-Bill Report published today by SEMI. A book-to-bill of 1.00 means that $100 worth of orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in February 2014 was $1.29 billion. The bookings figure is 0.7 percent higher than the final January 2014 level of $1.28 billion, and is 20.1 percent higher than the February 2013 order level of $1.07 billion.

The three-month average of worldwide billings in February 2014 was $1.29 billion. The billings figure is 4.5 percent higher than the final January 2014 level of $1.23 billion, and is 32.2 percent higher than the February 2013 billings level of $974.7 million.

“Equipment bookings and billings continue along a steady trend in the first quarter,” said Denny McGuirk, president and CEO of SEMI. "The book-to-bill ratio remains at or above parity for the fifth consecutive month, and the booking and billing values remain well above the figures reported one year ago."

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.

Billings (3-mo. avg)
Bookings (3-mo. avg)
Book-to-Bill

September 2013
1,020.9
992.8
0.97

October 2013
1,071.0
1,124.5
1.05

November 2013
1,113.9
1,238.0
1.11

December 2013
1,349.7
1,380.8
1.02

January 2014 (final)
1,233.2
1,280.3 ( 19.0% HIGHER than January 2013 booking of USD 1.08 billion )
1.04

February 2014 (prelim)
1,288.6
1,288.9 ( 20.0% HIGHER than February 2013 booking of USD 1.07 billion )
1.00

http://www.semi.org/en/node/49296

(Vested)

[BlueKelah]

book to bill ratio on downtrend, could be cyclical, could be due to increased production before christmas sales which are now ramping down..

[Boon]

book to bill ratio on downtrend, could be cyclical, could be due to increased production before christmas sales which are now ramping down..

Ha-ha ! (No offense) - If clients of AMAT are ramping down now, they would not be able to meet demand come Christmas time - due to "lead time required".

Traditionally, 1H is "ramp-up-time" to prepare for Christmas demand - hence, 2H could be relatively "slower" compared to 1H. These have been consistent with UMS revenue over the past few years with the exception of 4Q2013 ( seasonality factor overhelmed by other factors).

Overall, I would expect this "seasonality" and the trend of a stronger 1H to continue.

(Vested)