UMS Holdings

[Henri]

Third wave of selling in the making... support at 0.54, thereafter will be 0.46-0.47.

[chialc88]

Mmm...
Let see tonight who is selling?


Earth day - save the world everyday.

[orangekun]

Can a shareholder request the secretary for the latest shareholdings? Anyone done it before ?

[Boon]

Going through AR2010 to AR2013 of UMS, what conclusion can one draw on the AMAT-UMS relationship?

There had been transfer of technology from AMAT to UMS.

"OTHER" seems to imply something !

UMS used to have other customers in the semiconductor equipment industry including Lam Research, whom I considered to be AMAT's no:1 competitor, but...........................

(vested)
________________________________________________________________________________________________________________

AR 2010 (page 8)

Review of Operations
The key to our achievements was the shift in our product mix towards producing more integrated systems as opposed to individual component parts for the semiconductor industry. Working closely with a major customer, we were able to use the financial downturn to develop capabilities and competencies in developing more advanced and higher value add semiconductor systemsThe efforts of the last two years – which included in-house training and technology transfer from a major customer seeking to outsource more functions to Asia – enabled us to fulfill our vision to be a one-stop global partner for our global customers in providing a full range of integrated manufacturing services.

In view of the financial crisis, many Western semiconductor companies have been increasing their outsourcing activities to lower-cost Asian countries such as Singapore. This has offered us the opportunity to capture some of the manufacturing orders that have shifted from our customers’ US operations to Singapore.

Both these strategies were developed at the height of the global financial downturn which affected the semiconductor industries severely. Instead of merely cutting back costs, the company undertook a major review to shift its business directions towards systems as well as to explore opportunities in South Korea. Through this process, we deepened our relationship with a major customer and also reaped significant financial returns.

Review on Business Segments
The Group’s semiconductor business remains the core activity of the Group. Our strategic thrusts previously mentioned were all focused on this segment which continued to present growth potential.

The semiconductor business is sub-divided into component parts and also integrated systems.

For the year under review the major revenue driver was the integrated systems as we were able to position UMS as a strategic partner to our major customer which trusted us to take on larger and more complex projects. The production and assembly of more complex systems has allowed us to move up the value chain while significantly improving our business model and contributing to sales and profits.

AR2011 (page 2)

Reflecting on our relatively stronger financial performance, we believe that this was the fruition of the Group’s strategic business transformation since FY2008 of manufacturing more semiconductor integrated systems instead of individual components. The great working relationship with a major customer, moving up the value chain and providing more value added system integration services have helped the group to weather the difficult times of the semiconductor industry, allowing us to protect our margins and profitability

AR2011 (page 6)

Outsourcing Trend continues
With UMS demonstrating increasing sophistication and stronger engineering capabilities, the Group’s major Semiconductor customer maintained their outsourcing agenda to its Singapore operations. As a result, in FY2011, 60.6% of UMS’ revenue comes from the Singapore market. In the coming years, the Group believes that contribution from the Singapore market is set to rise and may reach
over 80.0% within the next couple of years.

Available Capacity to meet additional demand
The current overall utilisation level for its manufacturing facility is between 50 to 60 per cent. This would allow UMS to capitalise on any surge in demands from its major customers in the short run and at the same time allow the Group to venture into OTHER more profitable segment without major capital expenditure or impact on its existing operations.

AR2012 (page 6)

Improved Capabilities to Match Outsourcing Trend
As UMS’ major Semicon customer continued their outsourcing strategy to its Singapore operations, the Group maintained its smooth supply chain operation to deliver anything from components to sub-systems to complete systems. This in turn enables its major customer to confidently deliver their end product to their customers.

As evidence, UMS derived 64.2% of its revenue the Singapore market in FY2012 compared to 60.6% the year before. This trend is set to continue as the Singapore operation continues to improve in its operation sophistication, turnaround time and product quality.

In mid-2012, UMS inked a long-term agreement with its major customer to continue delivering and supporting the customer’s semiconductor systems for the subsequent 5 years. This move provided UMS with a level of certainty and stability as it seeks to streamline the Group’s manufacturing operations and raise its productivity.

AR2013 (page 2)

2013 had been a remarkable year for UMS Holdings Limited (“UMS” or the “Group”) as the Group achieved record earnings of S$28.9 million, representing a 70% surge from that of 2012. This stellar performance could not have been achieved without the sacrifices and dedication from our management and employees. They have been instrumental to the Group’s competitiveness, enabling us to continuously deliver quality products and services to our major global customers in the semiconductor equipment industry. This is also the reason why we are able to maintain our reputation as a trusted, stable and sustainable partner for our customers throughout the years.

AR2013 (page 7)

Ample Capacity for growth
The utilisation rate for the Group’s manufacturing facility currently stands at 60% - 70%, giving UMS ample capacity for its future expansion. This ample capacity will enable the Group to meet any short term surge in demands from its major customer as well as allowing UMS to step up its efforts in acquiring new customers from OTHER profitable sectors.

For the year under review, the management had been intensifying its efforts to achieve the goal of expanding of the Group’s clientele base. Under the assistance of Singapore trade bodies as well as UMS’ own business associates, the management had explored various opportunities and will be evaluating each opportunity with prudence.

[yeokiwi]

Many of the AMAT technologies and system are export control.
There are probably only a few countries(Japan, Korea, Taiwan?) in Asia that AMAT can source for partners in system development and assembly and get approval from US. China, is definitely not in the list of AMAT's possible partner list.

THE IMPACT OF U.S. EXPORT CONTROLS ON NATIONAL SECURITY, SCIENCE AND TECHNOLOGICAL LEADERSHIP
http://fas.org/irp/congress/2010_hr/export.pdf

AMAT was represented by Ms. Karen Murphy, Senior Director, Trade, Applied Materials, Inc. and Singapore was mentioned in Page 64.

Karen Murphy had submitted a testimonial on the difficulties in export AMAT technology and production to other countries.
http://democrats.foreignaffairs.house.go...011510.pdf

Globalized Supply Chains
Just as we seek our scientific and engineering talent from around the world, so do we seek
suppliers from around the world. Current controls on technology sharing reduce our choices
in suppliers. As an example, suppliers located in countries not party to the Wassenaar
Arrangement require more compliance considerations than those in the regime. This is true
even when the non-regime country has export controls that are similar to the United States.
Singapore is a good example of this. To be effective, multilateral control regimes should be
inclusive and not closed clubs.

Suppliers are becoming more sophisticated in their ability to deliver customer-ready
components. These suppliers are more than a third party to Applied Materials; they are our
manufacturing partner. The recent proposal for a license exception between related
companies (ICT) should be expanded to allow for these relationships. Many of our suppliers
are required to obtain a license from their local government as well as a U.S. re-export
approval. This administrative burden causes delays in our ability to react to customer demand.

[Henri]

Third wave of selling in the making... support at 0.54, thereafter will be 0.46-0.47.

0.53 coming down slower than expected, vested guys take care... Probably will drop more after XD.

[greengiraffe]

Third wave of selling in the making... support at 0.54, thereafter will be 0.46-0.47.

0.53 coming down slower than expected, vested guys take care... Probably will drop more after XD.

broke recent low of 53.5, I cut losses liao.

Divested
GG

[linny]

Anyone still vested?

[CityFarmer]

Anyone still vested?

Yes, I am still vested, mulling on the next entry price...

[twsoon]

I bought more today at 53.0 cents.