Weekly Top 10 Technology Hardware and Semiconductors – January 7, 2024

Ingenuity by William Keating

• After nearly five years of litigation, the U.S. Department of Justice’s case against Fujian Jinhua will hear closing arguments in September 2023.
• Co-defendant UMC already settled with Micron more than two years ago. Since then, the two companies have further expanded their business relationship.
• Sudden settlement with Fujian Jinhua could help smooth the path for Micron’s difficult business in China

Fabricated Knowledge by Douglas O’Loughlin

• 2023 began with a significant downturn in the semiconductor market.
• Significant capacity additions were made after historic supply shortages caused by COVID-19, but demand was unstable as interest rates rose rapidly.
• Supply exceeded demand, and the market entered an era of oversupply.

Written by Scott Foster, LightStream Research

• Ushio Inc. has partnered with Applied Materials (AMAT) to develop a lithography system for package substrates that utilizes AMAT’s digital lithography technology.
• This will continue to draw attention to Ushio Inc.’s more advanced technology (including light sources for EUV mask inspection) and its potential for recovery along with the semiconductor cycle.
• The stock has fallen 10% since mid-December, marking an entry point. The third quarter financial results announcement is scheduled for February 9th.

Written by Scott Foster, LightStream Research

• The modest upward trend in monthly sales that continued through November should advance further in our forecast.
• EPS guidance for the fiscal year ending March 2024 is 22x, putting the stock at the lower end of its five-year P/E range.
• The content of the instruction will not change.Announcement of third quarter financial results is scheduled for the end of January

Written by Patrick Liao

Ingenuity by William Keating

• Just two months ago, 2024 was expected to be a year of low or no growth, compared to forecasts of more than 20% year-on-year growth.
• This will be a big negative for Infineon, STMicroelectronics, NXP, GlobalFoundries, HH Grace and others.
• The 423rd quarter earnings season, which was expected to be dark, has turned even darker.

Written by Vincent Fernando, CFA, Zero One

• On January 4, Microsoft announced changes to its PC design that will add new physical keys to PC keyboards. Microsoft Copilot key.
• We believe Microsoft Copilot will become a must-have for businesses. His early Copilot features can dramatically increase employee productivity, which should help drive the industry’s AI PC upgrades.
• CES 2024 January 9-12 will showcase AI PC models powered by Intel’s Core Ultra processors and Microsoft’s new Copilot keys. We also update Dell and Taiwanese PC deals.

Written by Patrick Liao

• Vanguard International Semiconductor (5347 TT) is likely to drop about 10% QoQ in Q1.
• In terms of revenue contribution, Taiwan, the United States, China, Europe, and Japan account for approximately 40%, 20%, 15%, 15%, and 10%, respectively.
• Taiwan Semiconductor Corporation (TSMC) (2330 TT) may abandon technology development beyond 40nm and transfer the technology to Vanguard.