We are merely few small potatoes and unable to shake Technology sector but Nasdaq correction otw.

What would happen to the value when everyone knows technology is the future? Will it remain valuable in short and mid term?

Bursa technology companies valuation have flied to sky-high. World no 1 in high PER valuation.

Boom and burst is a nature cycle in the stock market and no exceptional in Technology sector .

When Nasdaq is falling, everybody throws away no tomorrow. Joke to say investing technology companies in long term... Moat become mold.

Shortage of microchips to fuel the growth of 5G,Iot and Electric Vehicles. Come back to semiconductor 2 years later

Try some luck here.

Global chip shortage may last until 2023, says Infineon CEO
Author: Tan KW | Publish date: Tue, 17 Aug 2021, 10:37 AM

FRANKFURT: The global chip shortage that’s hampering companies from carmakers to computer manufacturers may linger for years, according to Germany’s biggest semiconductor company, Infineon Technologies AG.

The scarcity “may stretch into 2023” in areas where capacity expansion is slow to catch up with consumer demand, Reinhard Ploss, chief executive officer of Infineon, said in an interview with Frankfurter Allgemeine Zeitung.

“Building new facilities and clean rooms in which the silicon wafers are processed into chips can take two to two and a half years; upgrading existing facilities three quarters to one year,” he said.

The chip crunch this year is hurting production at companies from Tesla Inc to Apple Inc and Microsoft Corp.

The amount of time it’s taking for manufacturers to get orders filled stretched to more than 20 weeks in July, worsening from the previous month, research by Susquehanna Financial Group showed.

Increased work-from-home needs and the catch-up effect in the automotive industry following pandemic-fuelled delays have become major drivers for the chip industry, according to Ploss. He also cited faster adoption of electric cars and growing demand for renewable energy among factors contributing to the shortage.

Among European companies affected is Volvo Car AB.

Its plant in Ghent, Belgium plant won’t run for three days next week due to chip shortages with some 5,000 workers being temporarily unemployed, the De Tijd newspaper reported, citing a company spokesperson.

The plant had shut for five days in the first half for similar reasons.

Ploss called for more efforts in Europe to reduce the continent’s dependence on foreign exporters in the semiconductor business.

He’s “open” to cooperating with other companies as long as it fits Infineon’s business strategy, he said.

TSMC is the price setter of semiconductor chips and the market offers merely PER 30x. The company will keep growing in next 2 years as they can simply increase prices of the products. TSMC, Samsung and Intel had their plans for the new chips factory. Unfortunately, the new capacity will only be ready after 30 months.

In the absent of new chips capacity, how on earth our Bursa OSAT, ATE and EMS to grow the business in year 2022 and 2023?

Bursa Malaysia's OSAT & ATE & EMS players valuation.

OSAT (PER)
Gtronic - 27x
Inari -35x
MPI - 35x
Unisem - 33x

ATE (PER)
Aemulus - 82x
MI - 50x
Penta - 55x
QES - 52x
VIS - 35x
Vitrox - 63x

EMS (PER)
Ataims - 21x
EG - 31x
PIE - 18x
SKpres - 22x
VS - 22x

HDD (PER)
Dufu - 35x

LED (PER)
D&O - 108x
JHM - 48x

Hybrid
Greatec - 66x
Kobay -64x
SAM - 31x
UWC - 70x

The market has priced in semiconductor companies to report better profits in the next 2 quarters max. No big deal. Everyone knows well and it is similar with the investors know glove ASP decreasing as new supply capacity emerged.

Global HDD players valuation.
HDD (PER)
Seagate 16x
Western Digital 24x

Global OSAT & ATE & EMS players valuation.

OSAT (PER)
ASE 15x
Amkor 14x

ATE (PER)
Teradyne 23x
Advantest 23x
Chroma 19x

EMS (PER)
Foxconn - PER 17x
Wistron - PER 8x
Jabil - PER 16x

Guess how many of mid and downstream players would achieve double digit growth in next 2 years...

OSAT ( MPI, Unisem, Inari & Gtronic )
ATE ( Aemulus, Greatec, MI, Penta, Qes,Vis, Vitrox )
EMS ( Ataims, Eg, PIE, SkPres & VS)
Led ( D&O, Jhm)
HDD ( Dufu, Genetec, Jcy, Notion)

TSMC output will be hitting max 3rd Qtr 2021. No room for adding new capacity over the next 2 years. What would happen to the mid and downstream players in next 2 years?

Revenue 'million

30 Jun 21 - TWD 13,289
31 Mar 21 - TWD 12,919
31 Dec 20 - TWD 12.676
30 Sep 20 - TWD 12,138
30 Jun 20 - TWD 10,385

IBs have been talking so much dropping of glove ASP until 2 years later. No IB mention the consequences of supply crunch semiconductor chips from now to 2 years later. All IBs are shouting technology growth nonstop without taking a breath in the middle.

TSMC announces the turnover every month. It is a source to track bottleneck output volume and gauge the max capacity and the how long the crunch situation persist.

Anyway, long haul investors of mid & downstream industries would ignore the short and mid term effect of the supply crunch. It is back to your investment horizon in the end.

Upstream players, Wafer & chips manufacturers will be fetching good profits next year as chips supply crunch has occurred and many tender high prices to secure their requirements. It doesn't mean downstream players would be benefited as well.

" Now, the impact of the supply crunch is spreading to consumer tech. Apple CEO Tim Cook warned last week that a limited supply of semiconductors would hurt sales of iPhones. Microsoft is struggling to make enough Xbox consoles and Surface laptops. Elon Musk told a court last month that the chip shortage meant Tesla would only be able to manufacture about half as many Powerwall home batteries as it thinks it can sell. "

https://www.google.com.vn/amp/s/www.vox.com/platform/amp/recode/2021/8/5/22611031/chip-shortage-cars-electronics-automakers-gm-tesla-playstation-xbox

Consumer electronics producers and atomative makers are fighting for chips.

Technology chips selling price won't increase like what had happened in glove sector.

No extra capacity, that would mean consumers electronic companies like Apple's turnover and earnings peaking in 6 months.

High bearer of entry in Technology sector but the sector is encountering serious shortage wafer supply. It takes more than 2 years to build extra capacity. How on earth technology companies able to increase robust turnover and earnings in year 2022?


https://techcet.com/wafer-supply-constrained-through-2024-likely/

Kau pandai dan tahu semua seluruh dunia berapa billion kali. Cukup tak?

Kua orang biasa ma. You pandai dan tahu semua lor. Cukup keh?

Talking so much about earnings peak in glove sector in last 6 months. Earnings peak of Nesdaq companies in next 6 months.

Don't laugh at glove sector. It would turn to technology sector later. Everybody will be throwing no tomorrow in the downtrend.

Apple car is the next growth driver but it will kick in 2 to 3 years later.

Technology is a gimmick to fool folks too. just like what had happened in .com bubble 2 decades ago.

There are few US companies used to be god of wealth before. It can't adopt the time changing.

Why you worship Apple like a god? Are you an American?

Shortage of chip. Lu tau Boh?

Apple Earnings
2nd Qtr 21 - US 21.7b
1st Qtr 21 - US 23.6b
4th Qtr 20 - US 28.8b
3rd Qtr 20 - US 12.7b

Microsoft Earnings
2nd Qtr 21 - US 16.5b
1st Qtr 21 - US 15.5b
4th Qtr 20 - US 15.5b
3rd Qtr 20 - US 13.9b

How far can Apple & Microsoft go? Apple & Microsoft QR have started moved into higher base since Fourth Qtr 2020. It would deliver good QR in coming Qtr. What about next?

Bursa ATE players are traded higher than the semiconductor critical equipments suppliers. Bursa tech lovers are rich.

PER
ASML - 58x
Analog Device - 40x
Broadcom - 45x
KLA - 24x
Lam Research - 22x

Bursa EMS companies are traded at PER 22x, slightly higher than the world EMS players Foxconn, Wistron and Jabil.

Foxconn - PER 17x
Wistron - PER 8x
Jabil - PER 16x

Ultra rich valuation of Bursa Technology companies in comparison to the world players like Amkor and Teradyne. Bursa OSAT companies are fetching PER 35x and ATE fly to PER exceeding 50x.

Amkor (OSAT) PER 14x
Teradyne (ATE) PER 23x

To facilitate the process, i use Investing.Com app to setup the alerts for quarterly earnings notifications.

There are too many listed entities in US market. You can go to the individual company website to view the quarterly announcements and annual reports.

Wait for hot money to get into this sector again.

Good luck!

Appealing CPO price rally and Timber business recovery story.

Bursa Technology index is falling. :(

God bless you!

Out dated name Singapore Aerospace Manufacturing (SAM) does not really reflect the existing businesses now. Semiconductor business consisted 80% of the turnover. Name suppose to be Semiconductor & Aerospace Manufacturing or Semiconductor and Automation Manufacturing.

By excluding 30 largest shareholders, 16.5 million shares is available in the market.

Shareholders : 0 to 10,000 shares - 5 million shares
Shareholders : 10,001 to 100,000 shares - 7.9 million shares
Shareholders : 100.001 to 200,000 shares - 3.6 million shares

SAM's semiconductor and equipment division :

SAM Meerkat
With its vertically integrated services and flexibility to produce equipment from High Mix–Low Volume to High Mix–High Volume requirements, SAM Meerkat is a preferred partner in Equipment Manufacturing & Integration servicing some of the world’s leading brands in Semiconductor, LED, Electronics, Renewable Energy, and Disc Drive industries.

i. Built to print equipment from customer’s OEM design and provision of Assembly Services – supported by a team of highly experienced Electro-Mechanical & Electrical Engineers capable of integrating up to 12,000 parts per machine. SAM Meerkat is also equipped with a Class 10K Cleanroom facility.

ii. Sheet Metal Fabrication – built to print enclosures, skins, and structures with sophisticated, high precision machining capabilities, complete with In- house secondary processes such as Phosphating pretreatment, Wet paint & Powder coating facilities.

iii. Design & development of customized automation solutions, offering the services of consulting & project development, design & engineering, production & assembly, and integration & service.

Mobirise
SAM Precision
SAM Precision has the capabilities in the manufacturing of high precision milling and turning parts. Our state of the art CNC machining centers comprise of 3 to 5-axis milling and up to 9-axis turning machines enable SAM Precision to manufacture and deliver high complexity and quality parts to our customers worldwide mainly in semiconductor (front end & back end), telecommunication and disk drive industry.

SAM Precision has continuously invested in new technology and competencies to support increasing product requirements and be competitive in cost and fast turnaround time.

Mobirise
SAM Tooling Technology
Focusses on built to print precision tools, dies, jigs and fixtures; modular and equipment assemblies, primarily for the Disk Drive, connectors, medical, automotive, and semiconductor industries.

Capable of fabricating various types of materials, i.e., hot/cold rolled steel (hardened stainless steel, high carbon steel, high-speed steel), engineering plastics (Delrin, PEEK, ESD), stainless steel, carbide, ceramic, titanium, etc.

Mobirise
SAM Precision (Thailand)
Focusses on built to print precision tools, dies, jigs and fixtures; modular and equipment assemblies on refurbishing or build new, primarily for the Disk Drive and semiconductor industries.

SAM's semiconductor division generated about PAT 80 million in FY2021. By excluding aerospace division, the semiconductor division fetched EPS 59 cents per share. If the market value SAM between PER 30x to 40x, the share price will be RM18 and RM24 respectively.

SAM's PER 33x in comparison with Kobay 53x. More to catch up with Kobay.