Despite recent share price weakness, Cheng Uei Precision Industry Co (
"We retain our `Outperform' rating as we believe demand slowdown in the first quarter is not a long-term issue and are also positive on Cheng Uei's new products, such as iPhones, Apple TV, new video iPod and Bluetooth for tier-one customers," Macquarie Research Equities said in a report yesterday.
But the equities house decided to lower Cheng Uei's target price to NT$128 (US$3.9) from NT$152, because of weaker-than-expected component demand from Xbox game consoles, iPod music players and handsets in the current quarter.
Cheng Uei's shares were up 3.8 percent yesterday to close at NT$108.5. Citigroup Research, however, is not upbeat on Cheng Uei's long-term prospect.
Because of factors including a sales slowdown and an order reduction from brand maker Motorola Inc, component suppliers including Cheng Uei, as well as keypad maker Ichia Technology Inc (毅嘉科技) would see their business performance affected, Citigroup analyst Dale Gai said in a report on Wednesday.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
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Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
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