More data from the bank shows that $16.6 billion flowed into stocks in the recent week, $18.5 billion from bonds and $50.1 billion from cash. In addition, data showed first week inflows into emerging market equities of $1.3 billion in 6 weeks, the largest inflow into US small caps since December 2021 at $6.6 billion, the largest inflow of US value in 13 weeks at $5.8 billion. billion and in nine weeks for the biggest tech, $800 million.

https://www.marketwatch.com/story/based-on-history-the-next-bull-market-is-just-months-away-and-could-take-the-s-p-500-to-6000-says-bofa-11655475414?mod=home-page

The next bull market is just months away and could take the S&P 500 to 6,000: A BofA history lesson

When it comes to bear markets, investors can take comfort from history which suggests that where there is a beginning, there is always an end.

And according to Bank of America, investors have only a few months left to endure the bear market, which saw the S&P 500 SPX fall +0.25% earlier this week on June 13th. And then comes the bull market.

According to History, as Chief Investment Strategist Michael Hartnett points out, the average peak-to-trough bear decline is 37.3% and lasts 289 days. This would end the pain on October 19, 2022, the 35th anniversary of Black Monday, which is usually attributed to the stock market crash of 1987, and the S&P 500 index being below 3,000. Chances are.

One popular definition of a bear market defines it as a decline of 20% from a recent high. As of Thursday, the index was down 23.55% from its record 4796.56 hit Monday, January 3, 2022.

And the end usually marks a start with Bank of America noting that the average bull market lasts over 64 months with 198% returns, “so the next bull will hit the S&P 500 at 6,000 by February 28.” sees,” Hartnett said.

The company is generating positive cash flow and the mid to long term fundamentals are rock solid with demand for chips expected to grow exponentially in the next few years!

NatsukoMishima: Wafer and Oil prices are US denominated which should increase Dnex's profit tremendously in the next few quarters. USD has gone up alot against MYR, now trading at RM4.42/dollar

NatsukoMishima: Dnex is generating positive cash flow and all it's businesses are making profits. Dnex's fundanmentals are as solid as a rock.

NatsukoMishima: Just added some more Dnex shares to my portfolio. I strongly believe this stock will hit RM5 in the near future..

Chang206: Why isn't anyone complaining to SC about IBs manipulating the stock price? Isn't stock manipulation criminal?

The number used in vehicles has doubled since 2017, and electric vehicles use more than their engine-powered counterparts, according to IHS Markit Ltd. That could jeopardize the ramp-up of EVs, according to AlixPartners.

Ford is re-evaluating its entire portfolio in light of the situation, Farley said. In November, it signed a non-binding agreement to collaborate on production and technology advancements with semiconductor supplier GlobalFoundries Inc.

Stellantis in December signed an agreement with iPhone contract manufacturer Foxconn Technology Group to create four new families of chips that will cover more than 80% of its semiconductor needs and use the same kind used in smartphones, laptops and other consumer electronics that make up 95% of the semiconductor industry. Production, however, won’t begin until 2024.

GM also is working with a list of semiconductor companies on co-development, sourcing and manufacturing, helping to drive predictability in the supply chain.

”Automotive took a little longer than some of those other markets to realize its rules had changed,” Amsrud said. “It wasn’t Ford competing with GM for capacity. It was Ford competing with LG and Apple and all these other guys for capacity, and I think that was the thing that really showed how intertwined the systems had become.”

Chip crunch into 2024 could fuel more profits for automakers
By Breana Noble The Detroit News Feb 27, 2022

Automakers could be riding strong pricing from limited inventories because of the semiconductor shortage into 2024 — and they have no intentions of returning to the old ways.

An excess demand over the supply of new vehicles — crimped by too few microchips needed for electric components in vehicles from driving assistance functions to infotainment — drove average transaction prices to record highs in 2021, padding automakers’ balance sheets and their workers’ profit-sharing checks.

Conditions are likely to moderate this year, analysts say, but the constraints probably won’t be resolved for another couple of years as the world awaits more capacity to come online.

“I don’t think it’s going to be until all the way to 2024 where inventories are back to pre-crisis levels,” Colin Langan, lead automotive analyst for Wells Fargo & Co., said during an Automotive Press Association webinar in Detroit. “That’s good news for the automakers that should see good pricing and great news for the dealers that will continue to see above-average new vehicle margins.”

Stellantis NV on Wednesday rode strong pricing and cost-cutting efforts to a $15.1 billion net profit in 2021, nearly triple the 2020 combined earnings of its predecessors, Fiat Chrysler Automobiles NV and French Groupe PSA. Its 11.8% adjusted operating margin exceeded its 10% forecast, despite losing about 20% of its planned production for the year.

The automaker is predicting another year with a double-digit margin in 2022, though just 3% growth in the North American market, which helped fuel last year’s earnings.

“The size of the markets will be mostly managed by the supply of the semiconductors,” CEO Carlos Tavares said during an earnings call. “We believe the situation is going to move in the right direction. ... Hopefully things will get better. It will be slow. It will take time. 2022 is not going to be, from that perspective, the year where we can say we’re back to normal.”

Stellantis’ North American dealer inventory decreased by 186,000 units in 2021, sending average transaction prices in the Unites States up roughly 20% to around $47,000. There are signs of recovery, though: Globally, the automaker’s inventory in December was down 59% year-over-year to 791,000 vehicles, but that was up almost 100,000 vehicles from September.

Consulting firm AlixPartners LLP found 8.2 million vehicles weren’t produced last year because of the chip shortage as well as disruptions from semi and ship transportation and labor challenges. About 505,000 vehicles already have been lost this year, with Japan being hit the worst followed by North America and Europe. The result is 58% of last year’s inventory, and vehicles being sold within three weeks or fewer.

Earlier this month, General Motors Co. reported it had made $10 billion in profit in 2021 and surpassed its forecast, while Ford Motor Co. met its guidance and posted a net income of $17.9 billion.

GM CEO Mary Barra at Wolfe Research Virtual Global Auto, Tech and Mobility Conference on Wednesday said GM will “never go back” to past inventory levels.

“We are working to build every single vehicle we can build because the demand is so strong,” Barra said. “We do expect a favorable pricing environment to continue as inventories are going to take well beyond 2020 to rebuild.”

Dan Hearsch, managing director in the automotive and industrial practice at AlixPartners, however, cautions against the idea of a “new normal.”

“Automakers are really forced to cooperate with each other,” Hearsch said of conditions today. “Nobody can cheat, because nobody can make enough vehicles to drive demand. When supply catches up, when things bounce, and then when demand does fall off, because this is a cyclical market and eventually it will fall off, then we’ll get back to the more typical fluctuations.”

Ford also has changed its retail model in response to the results seen in 2021. It’s incentivized vehicle orders and wants them to account for a greater portion of U.S. sales — versus having customers buy off dealership lots — to keep pricing strong. Orders used to represent 5% of sales. In January, 37% of retail sales were orders.

But automakers do want more semiconductors to keep their plants running and get vehicles in the hands of customers.

“I was up until 11 o’clock last night — normal night for an auto executive these days. It’s transient. It’s frustrating. It’s painful,” Ford CEO Jim Farley said during the Wolfe Research conference. “Whether it’s dealers or us, no one likes to have unfinished inventory sitting around. It is ungodly expensive and our industry has put up with that for far too long.”

Chip shortage to plague automotive through to 2023 and beyond.

The semiconductor shortage is far from over and the industry must continue pushing forward regardless. By Jack Hunsley

The pandemic has had a profound impact on the automotive industry. However, one significant hurdle has been the disruption caused to the world’s semiconductor supply, worsened by the pandemic, but ultimately driven by global demand for technology.


The most recent suggestions claim that the shortage is unlikely to ease in 2022 and could even still be impacting the industry as far out as 2024. Such a hurdle would have been devastating at any time in the automotive industry’s history. However, in the context of upcoming decarbonisation goals, autonomy development and increasing consumer expectations on shared and connected mobility, the crisis could not have come at a worse time.

Car Chip Shortage to 2024 and Tesla Mostly Immune
March 19, 2022 by Brian Wang

I, Brian Wang, have researched the car chip shortage. Many people have said that the car chip shortage will clear up by the second half of 2022 but they are wrong. The car chip shortage will last until 2024.
Tesla has already been handling the shortage better than the other car companies and I have made a video that explains why Tesla is managing better.

What is the car chip shortage and why did it happen? The car chip shortage is a shortage and lack of availability for about 10% of the needed chips. This was mainly caused by the COVID related supply chain disruptions. Carmakers made this worse early in the Pandemic when car sales dropped and carmakers responded by canceling chip and supply orders. They anticipated fewer sales. However, the stimulus brought the economy and car sales back more quickly. Car chips are some of the lowest technology chips that are made. They are made at fabs that are 10-30 years old. Video game console demand went way up and some other stay-at-home products had higher demand. Car chips were at the back of the line.

The length of the shortage relates to how many cars are planned or expected to be built. 2023 would be when there are chips for 80 million cars which was the target for 2021. However, a fully functioning world economy could have demand for 100 million cars. In 2017, there was demand for 95 million cars. 2023 should be a lot better than 2021 but there would still be constraints on car production if cars are not redesigned for more efficient usage of chips or if some new supply from a few more factories is not enough for even higher demand.


It takes two years to make a new semiconductor factory. Chip companies do not want to make a lot of the 20-30 year semiconductors. They want to move forward to up-to-date chip technology.

Joe Justice is an ex-Tesla employee who has described Tesla’s Agile processes. Tesla runs 100% tests that are completely automated for each car. They can trigger the tests to validate over the air software updates or for any changes to the cars as they are built in the factory. Each car has a digital duplicate that describes all components in the car. The digital duplicate and the 100% automated testing has been enabling Tesla to make an average 20 changes per week for cars being built in factories. This means that one Model Y being built a particular way with particular parts and the very next Model Y can be different. They can use different chips or different HVAC or different wiring. The change can be made and tested immediately to confirm that high standards are still met.

There are about 6 major car chip making companies and about 8 almost major car chip makers and many smaller car chip makers. Tesla was able to write new firmware in 2 weeks for each new chip supply source they accessed. Tesla got more chips from more suppliers. Ford used Renesas almost exclusively for chips and could not shift to other sources when Renesas had a fire at a factory.

Other car companies just assumed chip suppliers could solve production issues and have been adding chips to cars for many years. The number of chips in cars has doubled since 2017. There were enough chips for 95 million cars in 2017 but only enough for 71 million cars in 2021. The overall amount of car chip did not decrease but did not increase enough to meet increased demand.

Tesla has been able to redesign how chips are used in their car. They have a new network inside that enables the newest Model S to use 20 microcontroller chips instead of 80. The supply of 80 MCU chips is enough for four cars instead of one.

Tesla makes their own chip design for their self-driving system. This is an advanced chip fabricated by Samsung. Other carmakers use chips and self-driving systems designed by Nvidia that are fabricated by TSMC or Samsung.

The other carmakers use advanced chips for LIDAR and the AI brains for the self driving or driver assist systems. Tesla does not use LIDAR. Tesla only uses inexpensive microcontrollers, sensors and other chips that are usually pennies to less than a dollar and their own self driving AI chip. Tesla uses fewer of the inexpensive chips and has designed to use slightly more advanced versions that are not in short supply whenever possible.

Tesla is more able to adapt to short term shortages by accessing more suppliers and Tesla reacts to longer term shortages by designing for expected availability.

Written and analyzed by Brian Wang. Nextbigfuture.com Sources- Infineon, NXP, IHS Markit, IEEE, Accenture

SMIC REPORTS UNAUDITED RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2021

The consolidated financial information is prepared in accordance with International Financial Reporting
Standards (“IFRS”) and is presented in accordance with IFRS unless otherwise stated below.
 Revenue was $1,580.1 million in 4Q21, an increase of 11.6% QoQ from $1,415.3 million in
3Q21, and 61.1% YoY from $981.1 million in 4Q20.
 Gross profit was $552.8 million in 4Q21, an increase of 18.2% QoQ from $467.9 million in
3Q21, and 212.7% YoY from $176.8 million in 4Q20.
 Gross margin was 35.0% in 4Q21, compared to 33.1% in 3Q21 and 18.0% in 4Q20.
 Revenue was $5,443.1 million in 2021, compared to $3,907.0 million in 2020.
 Profit attributable to owners of the Company for 2021 was $1,701.8 million, compared to
$715.6 million for 2020.

SHANGHAI, Feb 11 (Reuters) - Business boomed last year for Chinese chip maker Semiconductor Manufacturing International Corp (0981.HK) (SMIC) on the back of a global chip shortage, with revenues and profits soaring despite pressure from U.S. sanctions, it said.

Sales for calendar 2021 were up 39% on the year at a record of $5.4 billion, propelled by worldwide demand, the company said in an annual financial report published on Thursday.

Refinitiv data showed it was the company's strongest growth in annual revenue since 2010.

"The global shortage of chips and strong demand for local and indigenous manufacturing brought our company a rare opportunity," Guo Guangli, the secretary of the board, said on an earnings call on Friday.

Profit from operations for the year reached $1.4 billion, a roughly four-fold increase from 2020.

SMIC, which makes physical computer chips to the designs of other companies, has a small share of the chip fabrication sector, which is dominated by Taiwan Semiconductor Manufacturing Co Ltd

But it is the largest and most advanced fab in mainland China, thanks in part to backing from the government, which sees semiconductor manufacturing as key to efforts to foster an indigenous, advanced chip industry.

Sales ballooned in 2021 after a global chip shortage that began in late 2020, driving up prices and bringing a jump in orders.

That year, the company headquartered in the commercial hub of Shanghai said it would build three new fabs in Beijing, the capital, as well as in southern Shenzhen, and its home city, at a cost of several billion dollars each.

On the earnings call, Guo said SMIC expected to open the Shanghai fab in early 2022 and its Beijing and Shenzhen fabs by year's end.

The company is pushing ahead with expansion despite U.S. sanctions that have shaken plans to move into high-end chip manufacturing.

Late in 2020, Washington put SMIC on the Department of Commerce's entity list over concerns it had ties to China's military, requiring U.S.-based suppliers to obtain licenses to deal with the company. SMIC has denied having such ties.

Dutch lithography machine maker ASML Holding NV (ASML.AS) said it had yet to receive permission to ship to SMIC extreme ultraviolet (EUV) lithography machines needed to make the most advanced chips.

On Friday, company officials told investors that orders from SMIC's suppliers still take a long time to fill because of the curbs.

The company has also been through changes in its executive leadership as the sanctions and shortage unfolded.

In November Chiang Shang-yi resigned from the position of vice chairman roughly a year after joining the company, along with three board members.

Two months earlier SMIC's chairman, Zhou Zixue, had also resigned, citing health reasons.

https://www.cnbc.com/2022/02/11/chinese-chipmaker-smic-posts-record-revenue-despite-us-sanctions.html#:~:text=SMIC%20recorded%202021%20revenue%20of,the%20Entity%20List%20in%202020.

China’s largest chipmaker Semiconductor Manufacturing International Corporation reported record revenue and a surge in profit last year amid a global chip shortage but strong demand.

SMIC recorded 2021 revenue of $5.44 billion up 39% year-on-year, the fastest growth rate since 2010. Profit came in at $1.7 billion marking a 138% year-on-year rise.

That record performance came despite SMIC being put on a U.S. trade blacklist called the Entity List in 2020.

“The global shortage of chips and the strong demand for local and indigenous manufacturing brought the Company a rare opportunity, while the restrictions of the ‘Entity List’ set many obstacles to the Company’s development,” SMIC said in a statement.

SMIC is China’s largest foundry which is a company that manufacturers chips that other firms design. It’s a competitor to the likes of Taiwan’s TSMC and South Korea’s Samsung but SMIC’s technology is several generations behind.

As geopolitical tensions between China and the U.S. have ratcheted up in the last few years so has their battle to dominate key technologies. Semiconductors is one of those areas. China is significantly behind the U.S. in the chip industry but SMIC is seen as key to its ambitions to boost self-sufficiency in the sector and wean itself off foreign technology.

But SMIC can manufacture some of the less-advanced chips that go into cars, for example. Those have been in short supply globally. Last year, China Renaissance forecast that SMIC would be a beneficiary of the chip shortage. That has played out.

SMIC is also continuing to invest heavily and the company said that it plans to spend $5 billion in capital as it tries to get three new plants off the ground in Beijing, Shanghai and the southern Chinese city of Shenzhen.

The company said that it will add more production capacity in 2022, than it did in 2021.

Bullish reversal pattern spotted on the Nasdaq, DJIA and SPX! Expect a long rally!

https://www.youtube.com/watch?v=LxphA0Ly9Oc&t=500s

CGS-CIMB projects DNeX to post a 3-year core EPS CAGR of 453% (FY21-24F) driven by 1) higher wafers ASP, 2) higher wafers production volume on the back of new capacity expansion, 3) higher average crude oil prices for Ping Petroleum Limited (Ping), and 4) higher production volume at Ping on the back of its new capex programme.

“DNeX also enjoys a lower effective tax rate given that SilTerra has over RM12 billion as of Jul-21 in unrecognised deferred tax assets that could be offset against its future profits.

But Dnex's core profit will grow by leaps and bounds in the coming quarters for years.

GS-CIMB projects DNeX to post a 3-year core EPS grow rate of 453% (FY21-24F).

With EV demand increasing exponentially, Dnex has a very bright future.

Current PE assuming the quarterly profit is the same (which is impossible) is only 20X Price-to-earnings ratio = 1.15/(0.014 X 4)

This means that Dnex is grossly undervalued when compared to other semi conductor stocks like Greatech (PE 38), Genetec (PE 43.75)

Assuming an average PE of 40X, Dnex should be valued at RM 2.13.

Quarterly earnings should increase a lot in the coming months as Dnex gets more lucrative LTAs especially the ones for the EV industry. Core net profit for this quarter alone is RM62.5 million according to HLG.

With DNeX’s core PATAMI expected to grow to RM155.2m, RM197.8m and RM271.5m in the next few quarters, Dnex should be able to reach RM4 to 6 hopefully by the end of this year.

WOW, core Net Profit was RM62.5 million. Fantastic

DNeX’s 2QFY22 core PATAMI of RM62.5m (+107% QoQ) and 1HFY22 core PATAMI of RM92.7m came in above expectations at 60% of our full-year forecasts and 58% of consensus. We strongly believe DNeX should register uninterrupted back-to-back quarterly earnings growth over the next 6-9 months on the back of: (i) Silterra’s surging product ASPs, (ii) increasing wafer shipments; and (iii) soaring crude oil prices. We highlight that DNeX would be a major direct beneficiary of higher oil prices amidst the Ukriane-Russia conflict via its oil-producing assets in 90%-owned Ping Petroleum. Maintain BUY with a higher SOP-based TP of RM1.64 (from RM1.35).

Above expectations. DNeX’s 2QFY22 core PATAMI of RM62.5m (+107% QoQ) and 1HFY22 core PATAMI of RM92.7m (having adjusted for RM264.5m gain from the acquisition of Silterra, RM11.4m impairment loss on receivables and RM8.4m on forex losses) came in above expectations at 60% of our full-year forecasts and 58% of consensus. Key variance against our forecasts was attributed to higher than expected realised crude oil price and net ASP per wafer throughout 2QFY22.

https://www.youtube.com/watch?v=FP_g-as29x0

Why the Global Chip Shortage Is Hard to Overcome.

A global chip shortage is affecting how quickly we can drive a car off the lot or buy a new laptop. WSJ visits a fabrication plant in Singapore to see the complex process of chip making and how one manufacturer is trying to overcome the shortage.

To long term shareholders, hold and be patient. Long term very lucrative contracts for SilTerra’s 180nm Bipolar-CMOS-DMOS (BCD) automotive grade chip will materialize soon.

https://www.youtube.com/watch?v=je9At_CjubA

The number of semiconductors in a modern car, from the ignition to the braking system, can exceed a thousand. As the global chip shortage drags on, car makers from General Motors to Tesla find themselves forced to adjust production and rethink the entire supply chain. Illustration/Video: Sharon Shi

The automotive chip shortage is so bad that carmakers like GM even have to sell cars without certain features. The chip shortage will last for many years..

https://www.youtube.com/watch?v=GrS9j7K4M-s

A global shortage of microchips is devastating the auto industry. Carmakers are forced to sell cars without features like heated seats, considered essential in colder climates. General Motors has been directing the supplies it does have to its most profitable vehicles. And there isn’t really a clear end to this in sight.

General Motors had to temporarily drop heated seats as an option on vehicles in response to the chip shortage. But the largest U.S. automaker is not alone. The move is another sign of how automakers are having to respond to a crisis that has been cratering dealer inventory, spiking prices and delaying orders.

While GM does have a proposed remedy in place — a retrofit option will be available for owners later in 2022 — there really is no discernible end of the chip shortage in sight. There has been talk of trying to spur more domestic semiconductor production, but that will take years and billions of dollars to get off the ground.

NatsukoMishima:- Let's sail together all the way to RM14...seriously..

This stock is greatly undervalued. If UWC can move from RM1+ to RM14+, why not Dnex with it's potential super future earnings and a CAGR of over 435% in the next three years.

Genetec went from RM1 to over RM50 based on rumours only that it had secured a contract with Tesla. Dnex is almost guaranteed to win a very lucractive contract to supply highly proftable automotive chips to Foxconn very soon.

This is indeed a masterpiece of a gem.

I wont be surprise if Dnex can up to RM10+

“DNeX also enjoys a lower effective tax rate given that SilTerra has over RM12 billion as of Jul-21 in unrecognised deferred tax assets that could be offset against its future profits.

“Note that we have yet to account for: 1) contributions from emerging technology platforms like silicon photonics that command premium ASP, and 2) commercialisation of Ping’s Avalon oilfield,” it said.

According to CIMB, DNex has RM12 billion in deferred tax assets! That translates to
12/3.155 = RM3.80/share of tax savings!!

WOW! So that means Dnex's super profits in the coming years could be tax free if Dnex chooses to exercise the tax assets...

With a fantastic CAGR, Dnex can hit RM14 also..

Look at UWC, went from RM1+ all the way to RM14..
Genetec, from RM1+ all the way to RM50+..

WOW, CIMB says that Dnex can project a 453% growth rate for 3 years! Fantastic

CGS-CIMB projects DNeX to post a 3-year core EPS CAGR of 453% (FY21-24F) driven by 1) higher wafers ASP, 2) higher wafers production volume on the back of new capacity expansion, 3) higher average crude oil prices for Ping Petroleum Limited (Ping), and 4) higher production volume at Ping on the back of its new capex programme.

KUALA LUMPUR (Feb 16): CGS-CIMB Research has initiated coverage on Dagang NeXchange Bhd (DNeX) at RM1.13 with an “Add” rating and target price of RM1.60.

In a note Wednesday (Feb 16), the research house said DNeX is well positioned to benefit from SilTerra’s turnaround, underpinned by on-going semi chips shortages and structural shift towards More-than-Moore (MtM) devices.

The research house said it is projecting SilTerra to invest over RM900 million capex in FY22-24F.

“The group plans to increase its mask layer (ML) capacity by 20% to 10m ML/annum by CY23F.

“We expect SilTerra to secure two new long term agreements (LTAs) in 1HCY22F that will take up 80% of its capacity,”it said.

CGS-CIMB projects DNeX to post a 3-year core EPS CAGR of 453% (FY21-24F) driven by 1) higher wafers ASP, 2) higher wafers production volume on the back of new capacity expansion, 3) higher average crude oil prices for Ping Petroleum Limited (Ping), and 4) higher production volume at Ping on the back of its new capex programme.

“DNeX also enjoys a lower effective tax rate given that SilTerra has over RM12 billion as of Jul-21 in unrecognised deferred tax assets that could be offset against its future profits.

“Note that we have yet to account for: 1) contributions from emerging technology platforms like silicon photonics that command premium ASP, and 2) commercialisation of Ping’s Avalon oilfield,” it said.

This is going to be a multi-bagger winner stock! Keep for medium to long term..

I'm now more convinced that Dnex can go beyond RM6..hopefully by the end of this year!

All the good news are coming in guys..

2 long term and very lucrative contracts + high oil prices + RM12 billion in deferred tax assets!!

Awesome!

https://www.theedgemarkets.com/article/cgscimb-starts-coverage-dagang-nexchange-target-price-rm160

“DNeX also enjoys a lower effective tax rate given that SilTerra has over RM12 billion as of Jul-21 in unrecognised deferred tax assets that could be offset against its future profits."

WOW! That mean's in the future, Dnex will be exempted from paying well over RM12 billion in taxes! Fantastic!

KingDavid: No problem. Let's enjoy the ride to RM6 and beyond.

https://semiengineering.com/200mm-shortages-may-persist-for-years/

200mm Shortages May Persist For Years

A surge in demand for chips at more mature process nodes is causing shortages for both 200mm foundry capacity and 200mm equipment, and it shows no signs of letting up. In fact, even with new capacity coming on line this year, shortages are likely to persist for years, driving up prices and forcing significant changes across the semiconductor supply chain.

Shortages for both 200mm foundry capacity and equipment have existed for some time, and the situation remains problematic. For example, 200mm foundry capacity is fully booked in the first half of 2022, according to Gartner. Beyond that, demand for 200mm foundry capacity will continue to outstrip supply, meaning foundry customers will need to plan ahead to ensure they obtain enough 200mm capacity in the future.

There are two types of semiconductor companies that manufacture chips in fabs. Integrated device manufacturers (IDMs) design their own name-brand chips and manufacture them in their own fabs. Foundries, meanwhile, make chips for other companies in their own fabs. Both IDMs and foundries have 200mm and/or 300mm fabs. (200mm and 300mm refer to the diameter of silicon wafers, which are produced by various wafer makers.)

200mm fabs have been around since the 1990s. A multitude of chipmakers operate 200mm fabs, and at last count, more than 200 of those exist today. 200mm fabs manufacture devices at mature process technologies, ranging from the 6µm to the 110nm nodes. Chips produced in 200mm fabs are used in every electronic product and include analog, display ICs, microcontrollers (MCUs), power management ICs (PMICs), and RF.

Some, but not all, of these chips also can be produced in more advanced 300mm fabs. These larger fabs process devices from the 90nm to 5nm nodes. (A process technology is the recipe used to manufacture a given chip in a fab. A node refers to a specific process and its design rules.)

Nonetheless, IDMs and foundries have seen unprecedented demand for chips at all nodes. During the onset of Covid-19 in 2020, countries implemented various measures to mitigate the outbreak, such as stay-at-home orders. Many began to work at home or attend school remotely, fueling a buying spree for new PCs and TVs. Then, in 2021, demand spiked for cars, smartphones and other products. All of this caused a wave of chip shortages across several markets.

The chip shortage situation has extended into the first part of 2022. Many believe the supply/demand situation will return to relative normalcy by mid-2022, except for some automotive chips, which will remain in short supply throughout the year. By mid-2022, though, many chipmakers should have enough 300mm fab capacity to meet demand.

But 200mm is a different story. Today, several companies are building new 200mm fabs. In total, the industry has increased 200mm fab capacity by over 300,000 wafers per month (wpm) in 2021, up 5% over 2020, according to SEMI. That’s not nearly enough capacity to meet demand.

“200mm capacity at the foundries is sold out for the first half of 2022. I would expect the tightness of 200mm foundry capacity will last a few years, possibly to 2025,” said Samuel Wang, an analyst at Gartner. The situation is slightly better at the IDMs, where fab utilization rates for 200mm capacity is running higher than 80%, Wang said.

Even if foundry customers are fortunate enough to secure enough 200mm or 300mm capacity in 2022, they face another set of issues. Foundry vendors are expected to raise their 200mm and 300mm wafer prices this year.

Gerard Lam:- The intrinsic value of RM5 is actually on the ultra conservative side. Look at Tesla, who would've taught that it would hit a PER of well over 200+ a few years back.

I'm confident that Dnex can go beyond RM6.

You have to remember that Dnex will provide highly lucrative chips to the EV industry which is growing at an exponential rate for many years. Coupled with the severe shortage of chips built from 200mm wafer, Dnex PER should be more than 45X.

https://www.teslarati.com/global-ev-market-increase-2020-to-2030-allied-market-research-study/

https://semiengineering.com/200mm-shortages-may-persist-for-years/

Don't compare Dnex to Inari. Inari is in the 5G business whereas Dnex is a chip manufacturer for various industries including the EV industry.

Once Foxconn awards a multi billion dollar deal to Silterra to manufacture chips for their electric vehicles, Dnex will soar beyond RM6 before year end.

If a loss making company like Genetec with all it's unfounded hype has a PE of over 60+, why can't Dnex be similarly priced...

NatsukoMishima:- Definitely. With the current multi year, multi billion dollar contract from ChipOne and the almost certainty of winning 2 more multi year, multi billion dollar contracts from Foxconn to produce high quality chips for electric vehicles, this stock has the huge potential to go beyond RM 6!

According to a report by Forbes, quoting analysts, it said “a share of the global EV market should easily fall to Foxconn now because the three EV models follow a string of related joint ventures since 2014. Those endeavors give the firm expertise that it can combine with its giant factory infrastructure in Asia.”

Among the slew of deals Foxconn has gotten itself into includes with US-based EV startup Fisker and Chinese automaker Geely. Separately, there were even a venture with Stellantis that allowed Foxconn to develop automotive cockpit software and another, with Gigasolar Materials, which gave Foxconn expertise in EV batteries and their components.

“We have done almost one collaboration project each month in the past year to ensure our supply chain capability and potential markets [for EVs],” Liu said at the event. “We are no longer the new kid in town.” For 2020 alone, Foxconn’s total revenue was NT$5.35 trillion, and as per Nikkei’s report, it estimates that its EV-related business will contribute more than NT$10 billion this year for the first time.

Liu reckons that regional manufacturing will be a major trend for the EV industry as producing cars close to the markets where they are sold will help manufacturers keep costs down. That said, he claims that Foxconn will soon announce the details of its EV production plans for Europe, followed by India and then the South American market.

To top it off, just last week, Indonesia’s government said that Foxconn “plans to build” electric vehicles and batteries there. Indonesia’s Investment Coordinating Board (BKPM) released a statement, quoting Liu saying Foxconn “plans to build a comprehensive electric battery and electric vehicle industry in Indonesia” for two-wheel and four-wheel vehicles. “We will not only assemble, but we want to build a whole industry for Indonesia in Indonesia,” Liu said, according to the statement.

Separately, Liu said all plans in different nations will involve partnering with local governments or government-recommended enterprises. In terms of overseas forays, Foxconn recently acquired a manufacturing plant from Lordstown Motors in the US state of Ohio, which the company will use to produce full-size electric pickup trucks for the American market from April 2022.

To serve Southeast Asia, Foxconn is also building a production facility in Thailand with state-backed oil and gas company PTT whereas in China, the company is collaborating with Zhejiang Geely Holding. Overall, Foxconn has set a target to provide components or services for 10% of the world’s EVs by between 2025 and 2027.

iPhone maker Foxconn aims to turn EVs into a US$35 billion business

The iPhone maker unveiled its first three electric vehicles recently — an SUV, a sedan and a bus.
It also plans to build electric vehicle factories in Europe, India and either North or South America by 2024, while showing interest towards Indonesia’s EV supply chain.
The iPhone maker has also made several overseas forays into EVs.
For the past one year, Foxconn, best known for assembling electronics, has been actively announcing partnerships and plans to produce electric vehicles (EVs). The iPhone maker even has ambitions to turn its nascent auto segment into a 1 trillion New Taiwan dollar (US$35.78 billion) business in the next five years. While it took time for its plans to take shape, the company is off to a great start with the unveiling of three EV models recently.

Two weeks ago, the Taiwanese company introduced two passenger EV models — Model C sports utility vehicle, Model E sedan — and a Model T electric bus prototype during its annual Foxconn Technology Day event in Taipei. Its first three EVs will be made via a joint venture between Foxconn and Taiwan-based automaker Yulon Motor, known as Foxtron, the company said during the event.

The company said in a statement that Terry Gou, its founder “has always believed that the adoption of electric vehicles would inevitably be a global trend by the simple fact that it has become the world’s largest and most expensive smart electronic device.”

From an iPhone maker to an EV maker
To recap, over the past year, the Taiwanese company has forged one partnership announcement per month, in turn “creating a Hon Hai electric vehicle supply chain and distribution network,” Chairman Young Liu said in a company statement. He says Foxconn, formerly Hon Hai Precision, now has an “electric vehicle supply chain and distribution network.”

Foxconn aims to turn EVs into a $35bn business in five years

https://asia.nikkei.com/Business/Technology/Foxconn-aims-to-turn-EVs-into-a-35bn-business-in-five-years

TAIPEI -- Foxconn on Monday unveiled three electric vehicle prototypes as the iPhone assembler attempts to turn its nascent auto segment into a 1 trillion New Taiwan dollar ($35.78 billion) business in just five years.

Natsuko:- You forgot to mention that Dnex is also vying to establish a digital bank.

https://www.theedgemarkets.com/article/hextar-joins-consortium-establish-digital-bank

Bloody liars

Don't spread false news on ESOS. There is mo announcement on this.

MiaoMiao7 @Windy1974

Karim sold his Serba warrant, not Serba mother share.
Even in here i3 got the info, he sold warrant, buy mother share. Click on the magnifier icon.

https://klse.i3investor.com/servlets/stk/annchdr/5279.jsp

He bought so much during march. From 18-Feb-2021 to 18-Mar-2021, karim bought 36,300,000 via Open Market. Let's say his average price is 1.60, thus RM58,080,000

and then 56,292,000 on 02 Feb via PP, forgot what was the PP price, RM1.50?

Karim spend about RM90,380,000 buying Serba's share.

Almost RM100 million, no CEO with insider knowledge knowing something bad is about to happen will spend RM100m to buy shares in the company. This is logic, right? I dont have evidence, maybe you are right, only time will tell. We'll know in a few quarters.

Now that most of the major projects are almost completed, such as Teluk Rumania, it will generate positive cash flow. But this doesn't mean investor will price it highly.

As for TG, Tan Sri Lim probably should not have said they will be the biggest company in Bursa, and he probably told many of his friends to invest and TG will hit RM30, which it almost did. It was ego that made him bought those shares.

Yes, analysts make visits to the company and the company will show them the best. EPF is not always right also. Time will tell.

But RM100 million by Karim is a vote of confidence.

Remember, Karim bought over 1.8 million shares just 2 days ago at around RM1.357 which tells me that SCIB stock is grossly undervalued. Private placement indicative price is RM1.54+. So using this 2 info, SCIB will go higher..LOL
26/05/2021 7:07 PM

SCIB is just like KPOWER, a distinct and separate company from SERBADK. All contracts won from SERBADK will not be affected.

Comment from InsiderShark
InsiderShark Insider Info I got.

KPMG unable to verify the accounts in Middle East due to covid travel restriction, this is regarding to block7 investment, thus requires a 3rd party there to do the auditing before they sign off. Unrelated to KPower or SCIB as both are 90% in Malaysia, fully audited. I have no idea if this is good news or bad. If verified to be ok, expect the stock to fly, 2 external auditors can't be wrong, this will give them a boost. If it is the other way around, then gg.

All the best.