Since this article refers to Taiwan here a "snapshot" on how things are being perceived by the "locals" (taiwanresearch.com).
Supposedly "industry observers" (whatever this means) expect DRAM situation to firm up at the end of Q2;
Micron also had analyst meeting last week (the 300 mm fab goes directly to 70 nm skipping 90 nm)
And AMD endorsing DDR2 as well:
AMD to migrate all desktop CPUs to Socket M2, server CPUs to Socket F in 2006
Hot systems
Charles Chou, Taipei; Jessie Shen, DigiTimes.com [Monday 9 May 2005]
After Advanced Micro Devices (AMD) introduces its Socket M2 platform next year, all of its desktop processors, including single- and dual-core platforms, will adopt the 90nm M2 socket design, according to Taiwan PC and server makers that reviewed the latest AMD roadmap.
Despite motherboard makers originally expecting the M2 platform to use a 1,207-pin architecture, the M2 socket will be a 940-pin platform, the makers indicated. It will be AMD’s Socket F architecture that will feature a 1,207-pin design, the makers added. Socket F will be introduced next year as well, and will be used for AMD’s Opteron lineup, except for the 100 series, which will migrate to the M2 platform, the makers explained.
Socket M2 and Socket F processors will both support dual-channel DDR2 memory, customers of AMD in Taiwan indicated. The move toward M2 and Socket F is expected to accelerate the industry’s migration from DDR to DDR2, the makers commented.
Monthly sales reports for the various tech segments start trickling: TSMC on 5/9
Taiwan Market Afternoon Commentary 2005/05/06
Electronics Dominate Trading to Surge Ahead
* TAIEX +0.68% to 5967.96 on NT$80.5bn (US$2.59bn)
* Electronics +1.26% on 81% of trading; financials -0.7% on 7%
* TAISDAQ +0.59% to 114.25 on NT$15.3bn (US$488mn)
* Brokerage +1.5%; electronics +1.0%
* FINI net bought NT$9.37bn
* Domestic investment trusts net bought NT$1.75bn
* Domestic proprietary traders net bought NT$0.33bn
Taiwan Market Afternoon Commentary, May 6, 2005
Despite a weak start, TAIEX managed to close 0.7% higher on the day at 5967 with moderate trading volume of NT$80.5bn (US$2.59bn). Intel's industry outlook as expressed during the company's investor meeting yesterday suggests that PC demand looks strong this year and that they expect to achieve double-digit growth for their third consecutive year. Electronics were clearly in the limelight, accounting for 81% of overall trading. LED continued their strong performance as they gained 3.2% today. Financials only accounted for 7% and closed flat. In the overall market, the average buy/sell size ratio was 8.7 lots to 8.0 lots.
Among all sectors: Foundry +1.6%, IC Design +3.8%, IC Testing and Packaging +0.5%, handset +2.1%, MB +0.6%, LCD +1.2%, LED +3.2%, CD-R +0.7%, Passive Components +0.1%, Cement +0.1%, Petrochemical +0.0%, Steel +1.8%, Rubber -1.2%, Automobile -0.1%, Transportation -0.2%, Paper & Pulp -1.1%, Construction -0.5%, Food -0.1%, Textiles -0.3%, China Plays +0.4%, Asset Plays +0.1%
Handset makers rally on their strong April performance
Silitech (3311 TT, NT$117, +6.8%) closed limit-up today thanks to better-than-expected April revenues (+17% MoM, +22% YoY) and are expected to grow 35% in 2Q05 from new models. Arima Communication (8101 TT, NT$26.1, +7.0%) was also limit-up as they shipped 1mn units of handsets in April. Arima shipped 1.6mn units in 1Q05, however, the company expects to ship 3mn units in 2Q from new models by Sony Ericsson. Compal Communications (8078 TT, NT$79.4), a major handset provider to Motorola, also showed a strong performance and was up 1.7% today.
LCDs continue strong performance on AUOs April results
AUO (2409 TT, NT$53.9, +2.3%) yesterday announced April net revenues of NT$14.9 (+2% MoM). Large size panel shipments were 2.29mn (-1.6%) and small and medium size panel shipments were 4.18mn units (+23.5% MoM). Investors¡| view that AUO may show a net profit as soon as May and that the traditionally slow 2Q may be stronger than expected this year. FINI have been accumulating AUO the past few days and their percentage holdings have reached a historical high of 40.96% yesterday. Other major TFT-LCD panel makers all gained today: CMO (3009 TT, NT$52.5, +1.0%), CPT (2475 TT, NT$14.15, +0.7%), Quanta Display (3012 TT, NT$16.4, +0.6%), with the exception of Hannstar (6116 TT, NT$9.15, -1.1%).
Mediatek gains on strong outlook for 2005
Mediatek (2454 TT, NT$272) gained 4.6% today as a foreign house raised their target price from NT$280 to NT$300 yesterday. They forecast that the company could reach its full year revenues and earnings target in 3Q. Mediatek has shown a strong performance in handset and LCD TV chips, covering for their relatively weak performance in DVD. Major players such as Nanya Tech (2408 TT, NT$23.1, +5.5%), Powerchip (5346 TT, NT$24.65, +1.0%), TSMC (2330 TT, NT$54.6, +1.3%) and UMC (2303 TT, NT$19.55, +2.4%) all gained today.
Taiwan Market Afternoon Commentary 2005/05/05
Improving Sentiment on Several Fronts Lifts TAIEX
* TAIEX gained 2.13% to 5927.50 on NT$90.65bn (US$2.9bn)
* Electronics +2.62% on 74% of trading; Financials +1.50% on 9%
* TAISDAQ gained 2.54% to 113.58 on NT$14.5bn (US$465mn)
* Brokerage gianed 3.7%; electronics gained 2.9%
* FINI net bought NT$10.64bn
* Domestic investment trusts net sold NT$0.94bn
* Domestic proprietary traders net bought NT$1.36bn
taiwanresearch.com
Taiwan Market Afternoon Commentary, May 5, 2005
TAIEX staged an impressive rally thanks to improving cross-strait sentiment, robust US market performances overnight and solid earnings reports. TAIEX closed 123.82 points higher, the largest increase this year, to close at 5927.5. Trading volume (NT$90bn) was active relative to recent levels, the highest in about 2 months. Corning, a US based company, announced that the glass that goes into making TFT-LCD panels will be in shortage for all of 2006. This news apparently gave the TFT-LCD sector a lift as all of the 5 major Taiwanese panel makers posted gains.
Among all sectors: Foundry +3.3%, IC Design +3.2%, IC Testing and Packaging +4.2%, WLAN +2.1%, MB +3.3%, LCD +4.4%, LED +5.7%, CD-R +4.1%, Passive Components +4.3%, Cement +1.5%, Petrochemical +1.5%, Steel +1.8%, Rubber +2.0%, Automobile +0.5%, Transportation +2.7%, Paper & Pulp +2.3%, Construction +1.8%, Food +1.4%, Textile +0.9%, China Plays +2.2%, Asset Plays +2.1%
Component Shortage led to TFT-LCD¡|s good day
Corning announced that there would be a shortage of glass that goes into making TFT-LCD panels starting in 2H05. Corning is the major supplier of sixth generation TFT-LCD glass for global TFT-LCD makers. This news may mean help ease the oversupply situation of TFT-LCD panels. As investors' sentiment takes a turn for the positive, they bought up shares of TFT-LCD makers. CPT (2475 TT, NT$14.05, +6%) was the major mover of the sector. In related news, Dell reportedly will purchase an unspecified amount of 14.1 and 15.4 panels from CPT. The combination of these news stories may have been the reason why CPT¡|s shares had such a strong showing today.
DRAMs in heavy demand
Powerchip Semiconductor (5346 TT, NT$, +6%) reported Apr revenues of NT$3.5 billion, which was a 9% increase from last month. That news, coupled with the sudden turn in sentiment, sent the DRAM sector up in today's trading session. Nanya Tech (2408 TT, NT$21.9, +7%) and Winbond Electronics (2344 TT, NT$9.89, +7%) locked at limit-up from mid-session. Promos (5387 TT, NT$12.3, +7%) also touched its 7% up-limit price briefly before retreating. One note of interest is that both Nanya Tech and Promos are expected to report lower April revenues than in March as ASP is still low as demand is weak. However, the market today shook off all possible negative news and sent the shares up.
LED shined brightest in today's sea of stars
LED was the strongest performing sector today on TAIEX. Overall, the whole sector was up over 5%. With the LED industry set to enter its traditional strong season, companies like Unity Opto (2499 TT, NT$37.45, +3.2%) and I-Chiun Precision (2486 TT, NT$14.1, +4.4%) reported record earnings for the month of April. Epistar (2448 TT, NT$48.65, +7%) is expected to report April earnings of NT$270mn, the second highest in its history. The sector, buoyed by the good news and out look, had three names, Epistar, Everlight (2393 TT, NT$42.55, +7%) and Formosa Epitaxy (3061 TT, NT$23.4, +7%) go up the 7% limit. |
