UMS Holdings

[Boon]

NOTICE OF BOOK CLOSURE DATE FOR FIRST INTERIM DIVIDEND
____________________________________________________________________
NOTICE IS HEREBY GIVEN that the Share Transfer Books and Register of Members of the Company will be closed on 16 July 2014, for the purpose of determining members’ entitlements to the First Interim Dividend of 1.0 cent per ordinary share (taxexempt one-tier) for the financial year ending 31 December 2014..................................

Payment of the First Interim Dividend will be made on 30 July 2014

http://infopub.sgx.com/FileOpen/Notice_o...eID=304638

(vested)

[Boon]

STAMFORD, Conn., July 9, 2014

Gartner Says Worldwide Semiconductor Capital Equipment Spending to Increase 15 Percent in 2014

Worldwide semiconductor capital equipment spending is projected to total $38.5 billion in 2014, an increase of 15 percent from 2013 spending of $33.5 billion, according to Gartner, Inc. Capital spending will increase 7.1 percent in 2014 as the industry begins to recover from the recent economic downturn and total spending will follow a generally increasing pattern in all sectors through 2018.

"While capital spending outperformed wafer fab equipment (WFE) spending in 2013 that is not true for 2014," said Bob Johnson, research vice president at Gartner. "Total capital spending will grow by 7.1 percent, while WFE will increase 16 percent as manufacturers pull back on new fab construction and concentrate on ramping new capacity instead. Momentum from exceptionally strong fourth-quarter 2013 sales was carried forward through the first quarter, then is expected to bounce around a flat trend line through the remainder of 2014. In the longer-term profile, growth continues through 2015, dips slightly in 2016 and increases through 2018."

Logic spending remains the key driver of capital spending throughout the forecast period, but due to the anticipated softening of mobile markets it will grow less than memory. Memory will provide most of the growth in capital spending through 2018, with NAND Flash being the primary impetus.

Capital spending is highly concentrated among a handful of companies. The top three companies (Intel, TSMC and Samsung) continue to account for more than half of total spending. Spending by the top five semiconductor manufacturers is nearly 63 percent of total projected 2014 spending, with the top 10 accounting for 77 percent of the total.

Gartner predicts that 2014 semiconductor capital spending will increase 7.1 percent, followed by 9 percent growth in 2015. The next cyclical decline will be a slight drop of 3.5 percent in 2016, followed by a return to growth in 2017 and 2018 (see Table 1)................

http://www.gartner.com/newsroom/id/2792817

(vested)

[Boon]

Rivalry between AMAT's No:1 (TSMC) & No:2 (Samsung) customers intensified - PC market rebound would be good for its No:3 customer (Intel) => more semi-tools spending ?

(vested)
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TSMC to speed up development of 10nm process

Josephine Lien, Taipei; Steve Shen, DIGITIMES [Wednesday 9 July 2014]

Taiwan Semiconductor Manufacturing Company (TSMC) plans to speed up the development of its 10nm process to fend off competition from Samsung Electronics, which reportedly has landed 14nm FinFET chip orders from Qualcomm, according to industry sources.

TSMC and Samsung are currently competing fiercely in the development of FinFET process, with the Korea-based foundry house utilizing a 14nm process and TSMC a 16nm node. Both the 14nm and 16nm processes are scheduled to enter volume production in early 2015.

TSMC has been pioneering the development of the FinFET technology and originally planned to begin producing 16nm FinFET chips in the fourth quarter of 2014, said the sources.

Nevertheless, TSMC has rescheduled the commercial production of 16nm FinFET process, and instead plans to roll out a more advanced 16nm FinFET Plus process, which will consume less power and further reduce die sizes.

However, Samsung's development of its 14nm process has been faster than what TSMC has thought, pushing the Taiwan-based foundry house to accelerate the development of the 10nm technology in order to maintain its lead, commented the sources.

http://www.digitimes.com/news/a20140709PD203.html
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STAMFORD, Conn., July 9, 2014

After Two Years of Decline, Worldwide PC Shipments Experienced Flat Growth in Second Quarter of 2014, According to Gartner

PC Industry Experiences Mixed Results as Mature Markets Return to Growth, While Emerging Market Shipments Continue to Decrease

After eight quarters of declining shipments, worldwide PC shipments experienced flat growth in the second quarter of 2014, according to preliminary results by Gartner, Inc. Worldwide PC shipments totaled 75.8 million units in the second quarter of 2014, a 0.1 percent increase from the second quarter of 2013.

“While the worldwide PC market stopped two years of declining shipments in the second quarter, there were mixed results, as stabilization in developed markets was offset by a decline in emerging markets,” said Mikako Kitagawa, principal analyst at Gartner. “The PC industry in emerging markets has been impacted by the allure of low-cost tablets. These low-cost tablets continue to take spending from new PC units, meaning that it will take more time for PC sales to stabilize in emerging markets.

“The PC market's installed based has been declining as buyers switched to tablets and smartphones for entertainment and social media consumption. The 2Q14 results suggest that the consumer installed base restructuring peaked during 2013. We are seeing a slowdown in premium tablet sales, which have already penetrated a large number of households. PCs are now growing off a smaller installed base of newer devices, with more engaged users. Therefore, we expect to see slow, but consistent, PC growth. While the end of support for Windows XP drove some of the sales in developed markets, it is the underlying business replacement cycle that will stabilize the market.”................................................................

http://www.gartner.com/newsroom/id/2793921
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PC Rebound in Mature Regions Stabilizes Market, But Falls Short of Overall Growth in the Second Quarter of 2014, According to IDC

09 Jul 2014

FRAMINGHAM, Mass., July 9, 2014 – Worldwide PC shipments totaled 74.4 million units in the second quarter of 2014 (2Q14), a year-on-year decline of -1.7%, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. The results reflect the smallest decline in global PC shipments since the second quarter of 2012 when declining shipments of mini notebooks combined with a surge in tablet sales to disrupt the PC market.

Buoyed by both continued business PC replacements and returning consumer interest, the preliminary results for 2Q14 are markedly better than the projected decline of -7.1% for the quarter. Despite the end of Windows XP support in early April, it appears many Windows XP migrations continue to take place. Most major vendors saw solid growth, and early indications also point to desktop shipments being stronger than expected in some areas, signaling continued business buying. The consumer side also appears stronger than expected, with growing activity among the lower-priced models as well as Chromebooks.

On a geographic basis, Europe, the United States, and Canada showed the strongest growth, reflecting more stable conditions. Japan would have joined list but for the dramatic surge last quarter and new taxes that limited second quarter growth. In contrast, emerging regions continue to see declining PC volumes as weaker economies and political issues combine to depress growth.

"The recent strength in mature regions is a positive sign," said Loren Loverde, Vice President, Worldwide PC Trackers. "However, an important part of this strength is driven by the rebound from weaker demand last year and to potentially short-term replacement activity. We can look for some recovery in emerging regions going forward, but it may coincide with slower growth in mature regions. We do not see the recent gains as a motive to raise the long-term outlook although 2014 growth could get closer to flat, rather than the May projection of -6%."

The PC industry remains intensely competitive, with factors such as economy of scale and channel reach continuing to add to the shift toward mobility and new designs in driving market consolidation. While the top 5 PC vendors grew 9.8% year on year in 2Q14, the rest of the market declined -18.5% on the year....................................

http://www.idc.com/getdoc.jsp?containerId=prUS24981914

[Boon]

Intel to unveil 14nm processors and 10nm wafers at IDF San Francisco

Monica Chen, Taipei; Joseph Tsai, DIGITIMES [Friday 11 July 2014]

Despite delaying its 14nm processor mass production to the fourth quarter of 2014, Intel is still set to showcase its 14nm processors at Intel Developer Forum (IDF) in San Francisco in September as originally scheduled, according to sources from the upstream supply chain. Intel will also unveil its 10nm wafers at the show.

Intel will release its 14nm Core M-series processors in the fourth quarter and 14nm Broadwell-based processors in January 2015, the sources noted.

Because of weaker-than-expected yields, high 22nm processor inventories, and poor PC demand, Intel has postponed 14nm processor production, which is planned to be conducted at its Fab 42 in Arizona, the US, the sources said.

Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) is set to accelerate the mass production of its 20nm process in the third quarter and will announce a 16nm FinFET process in 2015 with a 10nm process set to enter mass production in 2016. TSMC has also started developing a 7nm process, the sources said.

Intel recently acquired wafer orders from Panasonic. Although most market watchers believe the orders are meant for Intel to fill up its empty capacity, some believe Intel may become more aggressive about landing wafer OEM orders in the future after having a reshuffling of top executives recently.

Intel is now targeting orders for Apple's A9 processor and could become a big threat against the current OEM TSMC because of Intel and Apple's tight relationship, the sources added.

http://www.digitimes.com/news/a20140711PD205.html

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TSMC June revenues down slightly, but 2Q14 sales hit all-time high


Josephine Lien, Taipei; Steve Shen, DIGITIMES [Friday 11 July 2014]

Taiwan Semiconductor Manufacturing Company (TSMC) has reported revenues of NT$60.34 billion (US$2.02 billion) for June, down 0.7% on month but up 11.7% on year. Revenues for the first six months of 2014 amounted to NT$331.24 billion, an increase of 14.8% from a year earlier.

Second-quarter revenues surged 23.5% sequentially to NT$183.02 billion, reaching the upper target of its guidance of US$180-183 billion and representing the company's highest quarterly figures.

Strong demand for 28nm products from the mobile device sector drove up revenues at TSMC in the second quarter, according to industry sources.

TSMC is expected to see its revenues grow 12-17% in the third quarter, the sources estimated.

TSMC will unveil details of its second-quarter performance as well as its forecast for the third quarter at an investors conference scheduled on July 16.

http://www.digitimes.com/news/a20140711PD207.html

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UMC June revenues hit all-time high

Steve Shen, DIGITIMES, Taipei [Thursday 10 July 2014]

United Microelectronics Corporation (UMC) has reported revenues of NT$12.41 billion (US$415.01 million) for June, up 4% sequentially and 15.3% on year. The sum represents the company's highest monthly record.

Powered by strong performance in June, UMC's second-quarter revenues reached NT$35.87 billion, increasing 13.2% from the previous quarter, beating the company's guidance of a sequential growth ranging 11-13%.

Increased 8-inch wafer orders for LCD driver ICs, power management ICs and Wi-Fi chips drove revenue growth at UMC in June, according to a Chinese-language Economic Daily News (EDN) report.

Additionally, UMC has begun generating revenues from its 28nm PolySiON process, accounting for 1% of its total revenues currently, said the paper, adding that UMC will kick off commercial production of its 28nm HKMG process in the second half of 2014 with 28nm products to account for 5% of total sales by the end of the year.

http://www.digitimes.com/news/a20140710PM200.html

(vested)

[Boon]

13 Things I Heard at Semicon West

Rick Merritt , 7/11/2014

1. Stay tuned for a better battery

…………….Hurry up. My battery is almost dead………………….

http://www.eetimes.com/document.asp?doc_id=1323067

2. Moore's Law has definitely slowed

http://www.eetimes.com/document.asp?doc_...e_number=2

3. Intel is ramping up its foundry efforts

http://www.eetimes.com/document.asp?doc_...e_number=3

4. There's a (fairly good) consensus on the roadmap to 5 nm

http://www.eetimes.com/document.asp?doc_...e_number=4

5. Small, fast packages getting big, coming slowly

http://www.eetimes.com/document.asp?doc_...e_number=5

6. There's money for MEMS

http://www.eetimes.com/document.asp?cid=...e_number=6

7. Universities in research debate

http://www.eetimes.com/document.asp?cid=...e_number=7

8. EUV is still not ready

http://www.eetimes.com/document.asp?cid=...e_number=8

9. Directed self-assembly to the rescue

http://www.eetimes.com/document.asp?cid=...e_number=9

10. Outlier options are still options, but they're outliers

http://www.eetimes.com/document.asp?cid=..._number=10

11. Cool new materials are still not ready for prime time

http://www.eetimes.com/document.asp?cid=..._number=11

12. 450mm wafers will be ready in 2018, if anyone wants them

http://www.eetimes.com/document.asp?cid=..._number=12

13. Bigger companies, smaller show

…………………..It's no surprise. Fewer, larger companies are making chips………………………………

http://www.eetimes.com/document.asp?cid=..._number=13

(vested)

[Boon]

Analyst Briefing by AMAT on 07-July-2014

http://www.media-server.com/m/s/yw6344mf/lan/en

Some key points:
- industry inflections align with AMAT’s Precision Materials Engineering (PME) strategy – AMAT’s PME strategy enables disruptive device structures
- Gain market share – strong gain across multiple products
- Highest PVD orders since 2000
- WFE spending trends – growth outlook up, volatility down
- Steeper production ramps
- Tax rate realization
- Lower fixed cost
- Expect AMAT + TEL merger to be closed in 2H2014
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Huawei to become first client for TSMC 16nm FinFET process

Josephine Lien, Taipei; Steve Shen, DIGITIMES [Tuesday 15 July 2014]

China-based smartphone vendor Huawei is likely to be the first client for Taiwan Semiconductor Manufacturing Company's 16nm FinFET process node, according to industry sources.

The 16nm chip, designed for smartphone application, is developed by Huawei's subsidiary HiSilicon Technologies and is expected to debut in early 2015, said the sources................................

http://www.digitimes.com/news/a20140714PD210.html

(vested)

[Boon]

Smartphones shipment projections:
2014 : 1.25 billion (ABI) ; 1.22 billion (MIC)
2018 : 2.00 billion (ABI) ; 1.88 billion (MIC)

(vested)
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Over 2 billion smartphones to ship in 2018, says ABI Research

Press release; Alex Wolfgram, DIGITIMES [Wednesday 16 July 2014]

Approximately 1.25 billion smartphones are expected to ship in 2014 and will pass the two billion mark in 2018. The compound annual growth rate (CAGR) over the forecast period from 2014-2019 is 12%, according to ABI Research.........................................

http://www.digitimes.com/news/a20140715PR203.html
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Smartphone sales volume to reach 23.6% growth in 2014, says MIC

Press release; Alex Wolfgram, DIGITIMES [Tuesday 15 July 2014]

In 2013, the worldwide mobile handset market volume reached approximately 1.82 billion units, and is expected to reach 1.88 billion units in 2014, up 3% on year, according to Market Intelligence and Consulting Institute (MIC).

Smartphones alone are forecast to hit around 1.22 billion units in 2014, up 23.6% on year. MIC added that the worldwide smartphone market volume is estimated to increase at double-digit growth rates prior to 2016, with a market volume estimate of 1.88 billion units in 2018..............................................

http://www.digitimes.com/news/a20140715PR200.html

[Boon]

AMAT's no:1 customer, TSMC, seems to have gone from strength to strength.

1H2014 results seem to be consistent with industry wide growth expectation. Have to see if AMAT & UMS could achieve similar 1H results in term of revenue growth.

TSMC's net margin of 32.6% would certainly be hard to beat by other foundries, I would guess.

Meanwhile, 2Q revenue for AMAT's no:3 customer, Intel, was better than expected - demand for PC chips seemed to have improved

Key customers of AMAT are doing well - so AMAT should be doing well - and UMS should be doing well - (provided no deterioration of AMAT-UMS relationship) - ha-ha !

(vested)
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TSMC Q2 net profit hits record high (update)

2014/07/16 18:44:16

Taipei, July 16 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chip maker, said its net profit for the second quarter of this year hit an all-time high, with analysts attributing the growth to an increase in demand for high-end technology.......................................................................

The strong results reflected rising demand for a wide range of communications, computers, consumer electronics and industrial electronics, which gave a boost to TSMC's high-end technology, analysts said.

Chips made on the advanced 28 nanometer process accounted for 37 percent of TSMC's total sales over the quarter, up from 34 percent in the previous three-month period, while chips made on the 40/45nm process made up 19 percent of total sales, down from 21 percent.

TSMC Chairman Morris Chang told an investor conference that the 28nm process drove TSMC's growth over the past three years, while the more advanced 20nm and 16nm technology is expected to be the major growth driver over the next three....................................

http://focustaiwan.tw/news/aeco/201407160024.aspx
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TSMC Reports Second Quarter EPS of NT$2.30

Issued by: TSMC
Issued on: 2014/07/16

Hsinchu, Taiwan, R.O.C., July 16, 2014 -- TSMC today announced consolidated revenue of NT$183.02 billion, net income of NT$59.7 billion, and diluted earnings per share of NT$2.3 (US$0.38 per ADR unit) for the second quarter ended June 30, 2014.

Year-over-year, second quarter revenue increased 17.4% while net income and diluted EPS both increased 15.2%, mainly reflecting the increase in tax rate. Compared to first quarter 2014, second quarter results represent a 23.5% increase in revenue, and a 24.7% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, second quarter revenue increased 24% from the previous quarter and increased 16.3% year-over-year.

Gross margin for the quarter was 49.8%, operating margin was 38.6%, and net profit margin was 32.6%.

Shipments of 28-nanometer process technology accounted for 37% of total wafer revenues. 40/45-nanometer accounted for 19% of total wafer revenues. Advanced technologies, defined as 40/45-nanometers and more advanced technologies, accounted for 56% of total wafer revenues.

“In the second quarter, we saw strength of demand for our wafers across all segments, while our 28-nanometer technology business grew more than 30% from the previous quarter to account for 37 percent of our total wafer sales” said Lora Ho, SVP and Chief Financial Officer of TSMC. “While we expect the strong demand for our wafers to continue, the new technology node, our 20-nanometer System-on-Chip, has begun volume shipments and is expected to account for about 10 percent of our wafer revenue in the third quarter. Based on our current business outlook and exchange rate assumption of 1 US dollar to 29.81 NT dollars, management expects overall performance for third quarter 2014 to be as follows”:

• Revenue is expected to be between NT$206 billion and NT$209 billion;

• Gross profit margin is expected to be between 48.5% and 50.5%;

• Operating profit margin is expected to be between 38.5% and 40.5%.....................................

http://www.tsmc.com/tsmcdotcom/PRListing...language=E
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Intel Reports Second-Quarter Revenue of $13.8 Billion

• Achieves Record Quarterly Microprocessor Unit Shipments
• Net Income of $2.8 Billion, Up 40 Percent Year-Over-Year
• Targets $4 Billion for Share Repurchases in the Third Quarter

SANTA CLARA, Calif., July 15, 2014 -- Intel Corporation today reported second-quarter revenue of $13.8 billion, operating income of $3.8 billion, net income of $2.8 billion and EPS of $0.55. The company generated approximately $5.5 billion in cash from operations, paid dividends of $1.1 billion, and used $2.1 billion to repurchase 74 million shares of stock.

"Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things," said Intel CEO Brian Krzanich. "With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal. In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays.".............

Q2 Key Business Unit Trends
• PC Client Group revenue of $8.7 billion, up 9 percent sequentially and up 6 percent year-over-year.
• Data Center Group revenue of $3.5 billion, up 14 percent sequentially and up 19 percent year-over-year.
• Internet of Things Group revenue of $539 million, up 12 percent sequentially and up 24 percent year-over-year.
• Mobile and Communications Group revenue of $51 million, down 67 percent sequentially and down 83 percent year-over-year.
• Software and services operating segments revenue of $548 million, down 1 percent sequentially and up 3 percent year-over-year...........

http://www.intc.com/releasedetail.cfm?Re...cial20News
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Cumulative shipments of 300Mbps smartphone modems to exceed 700 million by 2019, says ABI Research

Press release; Joseph Tsai, DIGITIMES [Tuesday 15 July 2014]

Shipments of second-generation LTE basebands, commonly called Cat4, enabling mobile users to enjoy up to 150Mbps bandwidth, barely exceeded 42 million in 2013. However, key chipset suppliers are stretching their muscles for next-generation basebands that will enable speeds of up to 300Mbps, namely Cat6 chips. New findings from ABI Research indicate that cumulative shipments of Cat6 chips targeting smartphones are expected to exceed 700 million by the end of 2019.

"Although a number of chipset suppliers have announced their Cat6 basebands, mobile operators are not yet launching commercial networks that will allow users to enjoy mobile broadband speeds exceeding 150Mbps. An exception to this is SK Telecom which recently launched an LTE-Advanced service, offering speeds up to 225Mbps," commented Malik Saadi, practice director at ABI Research.

Qualcomm is the market leader when it comes to supplying LTE chips for mobile devices.....................................................................

http://www.digitimes.com/news/a20140715PR202.html

[kye_lin]

Creeping up slowly... XD was 53.5.....56 today..

[CityFarmer]

In mid term, till 2017, I doubt there are going to be major changes on partnership of UMS-AMAT, IMO.

The partnership post-2017, is much more tricky, amid the uncertainties on the integration post the M&A of AMAT.

(vested, and will remain vested in the foreseeable mid term)