Core Insights - ROHM Semiconductor has released a white paper detailing advanced power solutions for AI data centers based on the 800 VDC architecture, emphasizing its role in driving system innovation within the semiconductor industry [1][3] Group 1: 800 VDC Architecture - The 800 VDC architecture is a highly efficient and scalable power delivery system that is set to transform data center design, enabling gigawatt-scale AI factories [3] - Transitioning to an 800 VDC architecture significantly enhances data center efficiency, power density, and sustainability [5] - The shift to 800 VDC infrastructure is a collective industry effort, with ROHM collaborating with NVIDIA and other stakeholders to deliver essential wide bandgap semiconductor technologies [9] Group 2: Power Solutions and Technologies - ROHM offers a broad portfolio of power devices, including silicon, silicon carbide (SiC), and gallium nitride (GaN), and is among the few companies with the expertise to develop analog ICs that maximize device performance [3] - The white paper includes comprehensive power solutions supported by thermal design simulations, board-level design strategies, and real-world implementation examples [4] - Wide bandgap devices, particularly SiC and GaN, are critical for achieving efficient performance in the 800 VDC system [6] Group 3: Device Innovations - ROHM's EcoSiC™ series features industry-leading low on-resistance and top-side cooling modules ideal for AI servers, while the EcoGaN™ series combines GaN performance with proprietary analog IC technologies [8] - The EcoGaN™ series allows for stable gate drive, ultra-fast control, and high-frequency operation, which have garnered strong market recognition [8] - ROHM has established an integrated production system for SiC devices, solidifying its position as a leading supplier in the field [10]

Core Insights - ROHM Semiconductor has released a white paper on advanced power solutions for AI data centers utilizing an 800 VDC architecture, highlighting its role in semiconductor innovation [1][2] Group 1: 800 VDC Architecture - The 800 VDC architecture is a highly efficient and scalable power delivery system that can transform data center design, enabling gigawatt-scale AI factories [2] - Transitioning to 800 VDC significantly enhances data center efficiency, power density, and sustainability [4] - The relocation of AC-DC conversion from server racks to dedicated power racks optimizes power distribution [4] Group 2: Power Device Technologies - ROHM offers a broad portfolio of power devices, including silicon, silicon carbide (SiC), and gallium nitride (GaN), with expertise in developing analog ICs to maximize device performance [2][8] - Wide bandgap devices like SiC and GaN are essential for achieving efficient performance in the new architecture [5] - ROHM's EcoSiC™ series features low on-resistance and top-side cooling modules ideal for AI servers, while the EcoGaN™ series combines GaN performance with proprietary analog IC technologies [7][11] Group 3: Industry Collaboration - The shift to 800 VDC infrastructure is a collective industry effort, with ROHM collaborating with NVIDIA, data center operators, and power system designers [8] - Strategic partnerships, such as the one with Delta Electronics in 2022, are driving innovation in SiC and GaN power devices [8]

Summary of the Conference Call on China Industrials Industry Overview - The report focuses on the automation operations within the Chinese industrial sector, highlighting the strong momentum of domestic players compared to foreign competitors [1][5]. Key Points Sales Performance - In September 2025, four global players (Yaskawa, Panasonic, Delta Electronics, and ABB) experienced a decline in sales of servos and low-voltage AC drives in China, with sales down by -5% and -3% respectively, contrasting with positive growth of +4% and -2% year-on-year in the first eight months of 2025 [2][7]. Domestic Players' Orders - Inovance (300124.SZ) reported a significant increase in automation orders, up over 30% year-on-year in September, compared to 20-30% in August. Key markets driving this growth include batteries, logistics, semiconductors, wind power, construction machinery, and machine tools [3][10]. - Wuxi Xinjie (603416.SS) also saw orders grow by over 20% year-on-year in September, maintaining the same growth rate as August [3]. - Tsugami China (1651.HK) reported a solid order volume growth of 33% year-on-year in September, down from 42% in August [3]. General Equipment Orders - Haitian International (1882.HK) experienced a recovery in orders, with low teens year-on-year growth in September, compared to a low single-digit decline in August. Domestic orders showed strong growth while overseas orders increased by high single digits [4]. - Guomao (603915.SS) also reported similar trends with teens growth in orders [4]. Market Demand Insights - The overall demand in the automation sector remains robust, particularly in logistics, battery production, machine tools, electronics, and semiconductors. The PMI index increased to 49.8 in September from 49.4 in August, indicating a slight improvement in manufacturing activity [10]. Investment Recommendations - The report favors Inovance as a leading automation player due to its market share gains and strong drivers in the electric vehicle (EV) powertrain sector, as well as potential in humanoid robotics [10]. Valuation and Risks - The price target for Inovance is set at RMB 95, based on a 35x P/E ratio for its core business and a 5x P/S ratio for its humanoid business [11]. - Upside risks include stronger-than-expected macroeconomic conditions boosting demand for automation products and higher sales of ePVs equipped with Inovance's EV control systems [12]. - Downside risks involve failure to develop high-end automation products and potential gross margin declines due to rising raw material costs [13]. Conclusion - The Chinese industrial automation sector is showing strong domestic growth, particularly among local players, while foreign competitors are facing challenges. The outlook remains positive, with specific recommendations for investment in leading companies like Inovance.

Shares of Delta Electronics, Thailand's most valuable publicly traded company, are set to fall after the stock exchange imposed market surveillance measures on the securities following a record-breaking rally this month https://t.co/EkXrDK8ALn ...

Summary of Key Points from the Conference Call Industry Overview - The Asia/EM equity markets are currently trading close to the bull case targets set for June 2026, primarily due to multiple expansions, which may not be sustainable without a significant reacceleration in global growth [8][10][19] - Valuations in Asia/EM are now 1.0-1.8 standard deviations above 10-year averages, indicating potential overvaluation [10][19] Core Insights - Earnings per share (EPS) growth is crucial for sustaining current valuations; without it, the market may face corrections [8][10] - China’s economic reflation is progressing slowly, while India is expected to see a rebound in growth rates [8][19] - The US dollar is anticipated to weaken further, which could benefit emerging markets [8][40] - The Bank of Japan (BOJ) may still consider rate hikes, while the Federal Reserve (Fed) is expected to cut rates significantly [8][19] Market Preferences - Overweight (OW) positions are recommended in Japan, Singapore, India, UAE, and Brazil, while underweight (UW) positions are suggested for Indonesia, Saudi Arabia, and Taiwan [8][19] - Preference for local currency earners, particularly in Financials, Domestic E-commerce/Consumer, and Industrials (including Defense) sectors [8][19] - Underweight positions in Energy and Materials (excluding Gold), with a selective approach in Information Technology [8][19] Earnings and Valuation Targets - Current and target prices for major indices as of September 30, 2025: - TOPIX: Current 3,138, Target 2,900, Fwd P/E 13.8x [17][19] - MSCI EM: Current 1,346, Target 1,200, Fwd P/E 12.5x [17][19] - MSCI China: Current 89, Target 78, Fwd P/E 11.2x [17][19] - CSI300: Current 4,641, Target 4,000, Fwd P/E 12.9x [17][19] Global Economic Outlook - Morgan Stanley continues to expect a global economic slowdown, which may impact equity markets [21][40] - There has been a surge in interest in emerging markets (EM), with inflows observed in 8 out of the last 10 weeks [44][47] Company Focus List - Notable companies included in the Morgan Stanley Asia Pacific ex Japan Focus List: - Bajaj Finance (India, Financials) with a market cap of $69.4 billion and a target price indicating a 16% upside [50] - Delta Electronics (Taiwan, Information Technology) with a market cap of $72.8 billion and a target price indicating a 31% upside [50] - Tencent Holdings (China, Communication Services) with a market cap of $787.5 billion and a target price indicating a 6.1% upside [50] Additional Insights - The focus list has outperformed the MSCI Asia Pacific ex Japan Index since inception, with a total return of 548.5% compared to the index's 318.8% [50] - Analysts express caution regarding the sustainability of current valuations without corresponding EPS growth [8][10][19]

Summary of Investor Presentation on Greater China Technology Hardware: AI Tech Industry Overview - The presentation focuses on the Greater China Technology Hardware sector, particularly in AI technology hardware upgrades [4][5][6] - The overall industry view is categorized as "In-Line" [1] Core Insights and Arguments - **AI GPU and ASIC Server Upgrades**: There are significant opportunities in AI GPU and ASIC server/rack design upgrades, with major design upgrades anticipated for the GB300, Vera Rubin platform, and Kyber architecture [4][5] - **Enhanced Computing Power**: AI ASIC servers are expected to enhance computing power and increase rack density, with demand growth projected for 2026-2027 [4][5] - **Power Solutions**: Upgrades to 800V HVDC power architecture and the growing adoption of liquid cooling solutions are highlighted as key trends [4][5] - **PCB/Substrate Capacity Expansion**: A wave of capacity expansion in PCB/substrate is necessary to support ongoing design upgrades [4][5] - **Data Network Improvements**: Upgrades in data and power interconnects will lead to increased data network transmission speed and capacity [4][5] - **Consumer Electronics Demand**: Demand in consumer electronics remains lukewarm, with anticipation for upcoming foldable iPhone models in the second half of 2026 [4][5] - **AI PC Proliferation**: The proliferation of AI PCs is expected to take time, indicating a gradual market adoption [4][5] - **Supply Chain Reorientation**: The status of supply chain reorientation and its potential impacts are noted as important considerations [4][5] Key Stock Ideas - **AI Server Components**: Companies such as Delta Electronics, AVC, BizLink, King Slide, Chenbro, and Gold Circuits are identified as key players in AI server components [4][5] - **AI Server ODM/OEMs**: Wistron, Hon Hai/FII, Quanta, Lenovo, and Accton are highlighted as significant ODM/OEMs in the AI server space [4][5] Valuation Comparison - A detailed valuation comparison of various companies within the sector is provided, including metrics such as EPS, P/E ratios, P/B ratios, and trading volumes [5] - Notable companies include: - **Delta Electronics**: Closing price of 942.00 with a target of 1111.0 and a P/E ratio of 21.05 for 2025 [5] - **Hon Hai**: Closing price of 226.50 with a target of 250.0 and a P/E ratio of 13.83 for 2025 [5] - **Foxconn Tech**: Closing price of 70.60 with a target of 54.00 and a P/E ratio of 2.93 for 2025 [5] Additional Important Points - The report emphasizes the potential for share price upside in the context of the discussed upgrades and market trends [4][5] - The overall sentiment reflects cautious optimism regarding the future of AI technology hardware in Greater China, with specific attention to the evolving landscape of consumer electronics and server technology [4][5]

Summary of Delta Electronics vs. Vertiv – Data Center Power and Cooling Face-Off Industry Overview - The report focuses on the data center power and cooling solutions industry, specifically comparing Delta Electronics (2308.TW) and Vertiv (VRT.N) as leading providers for AI data centers - The total addressable market (TAM) for power and cooling solutions is projected to grow at a 30% compound annual growth rate (CAGR) to reach US$1,729 billion from 2026 to 2030e [1][16][87] Key Insights on Delta Electronics - Delta Electronics is recognized as a leader in power and liquid cooling systems for AI server racks, holding over 50% of the global supply share [10] - The price target for Delta has been raised to NT$1,111, reflecting confidence in its comprehensive solutions portfolio and continuous margin expansion [10] - Delta's revenue is expected to grow at a 40% CAGR from 2024 to 2027e, driven by its focus on margin-accretive business and expansion of production facilities [10][54] - The company aims for a long-term revenue CAGR of at least 10%, with data center exposure projected to account for 40% of total revenue by 2025 [53] Key Insights on Vertiv - Vertiv has a strong focus on data center power, cooling, and IT infrastructure, with 80% of its revenue derived from this sector [11] - The company is expected to achieve a 30% profit CAGR from 2024 to 2027e, supported by its comprehensive service offerings and strong relationships with key industry players [11] - Vertiv's service revenue contributes approximately 23% to its total revenue, enhancing its competitive positioning [103] Market Dynamics - The convergence of white space (IT equipment area) and gray space (supporting infrastructure) is becoming increasingly important as power and cooling demands rise [6][8] - AI-related infrastructure upgrades are expected to drive significant growth in both white space and gray space power and cooling solutions, with white space power and cooling TAM projected to grow at a >40% CAGR through 2030 [30][87] - The transition to 800V high-voltage direct current (HVDC) power systems and liquid-to-liquid cooling solutions is anticipated to enhance the value of offerings from both companies [37][100] Competitive Landscape - Both Delta and Vertiv are positioned to benefit from the growing demand for data center infrastructure, with the report suggesting that this is not a zero-sum game; both companies can thrive [9][16] - Delta's diversified exposure across various markets (40% data center, 29% commercial & industrial, etc.) contrasts with Vertiv's concentrated focus on data centers [42] - Delta's market cap is significantly larger than Vertiv's, providing it with more stability and liquidity [80] Financial Metrics Comparison - Delta Electronics: - 2025e Revenue: US$16,341 million - 2025e Operating Margin: 14% - 2025e Net Profit: US$1,709 million - 2026e P/E: 30x [18] - Vertiv: - 2025e Revenue: US$10,024 million - 2025e Operating Margin: 20% - 2025e Net Profit: US$2,003 million - 2026e P/E: 27x [18] Conclusion - The data center power and cooling solutions market is poised for significant growth, driven by AI demand and infrastructure upgrades - Delta Electronics and Vertiv are well-positioned to capitalize on these trends, with distinct competitive advantages and growth strategies - Investors should consider the evolving landscape and the potential for both companies to achieve substantial revenue and profit growth in the coming years [16][100]

Core Insights - India's semiconductor industry is facing a significant talent shortage, particularly in chip design and factory roles, despite having available skills in software and AI [1][10] - Companies are actively seeking to address this manpower crunch by offering opportunities for Indians working abroad to return home and by sending employees for training in countries like Singapore, Taiwan, and Korea [2][3][10] - The industry is focusing on building local training frameworks and partnerships with educational institutions to develop a skilled workforce [9][11] Group 1: Talent Shortage - The semiconductor sector in India is experiencing a manpower crunch, with a lack of skilled professionals in product development and factory roles [2][10] - Retention of talent is challenging due to the shortage, necessitating a conducive working environment to keep skilled employees [2][10] - Companies like Applied Materials and Renesas are leveraging their global centers to bring expertise back to India [5][10] Group 2: Training and Development - Companies are sending employees to international locations for training and bringing back knowledge to enhance local capabilities [3][8][11] - Partnerships with institutions such as ICT Academy and Nasscom's Skill Council are being formed to develop relevant curricula and training programs [7][11] - A homegrown approach to skilling is emphasized, with companies taking responsibility for addressing the talent gap rather than relying solely on government initiatives [8][11] Group 3: Global Collaboration - Cross-border exchanges and knowledge sharing are crucial for long-standing players in the semiconductor industry [7][10] - Companies are engaging in global collaboration to facilitate knowledge transfer and ecosystem development [6][7] - The message from industry leaders highlights the importance of embracing global talent pipelines to close the skills gap [9][11]

Summary of Conference Call Notes Industry Overview - **Industry Focus**: Taiwan Technology, specifically AI power applications and related components such as PCBs and substrates [1][2][3][4] Key Company Insights Delta Electronics - **Positive Investor Sentiment**: Investors are optimistic about Delta's AI power business, driven by solid growth in average selling price (ASP) per watt and product shipments, despite concerns regarding profitability and valuation [2][6] - **Revenue Growth**: Delta's revenue increased by 5% month-over-month and 27% year-over-year, reaching NT$47.9 billion, attributed to strong demand for AI power supply units (PSUs) [9] - **Market Share and Product Upgrades**: Delta is expected to maintain a high market share in the AI server PSU market, with AI power revenue projected to grow from 12% of total revenue in 2025 to 31% and 47% in 2026 and 2027, respectively [15][9] - **Long-term Growth Drivers**: The company is well-positioned to benefit from trends in EV, 5G infrastructure, and data center power needs, with a projected revenue CAGR of over 20% from 2023 to 2030 [35] NYPCB - **Substrate Market Position**: NYPCB is expected to benefit from favorable pricing trends in BT and non-LTA ABF substrates, with a significant portion of revenue (70%+) coming from these segments [38] - **Earnings Growth Outlook**: Anticipated earnings growth of 175% from 2025 to 2027, driven by increasing demand and pricing power in the substrate market [38] Zhen Ding Technology (ZDT) - **Market Share Expansion**: ZDT is projected to capture over 40% of the ABF substrate market in China by 2027, benefiting from the growing demand for AI computing components [40] - **Revenue Contribution from New Products**: The company is expected to see foldable smartphones contribute significantly to revenue, accounting for over 55% by 2027 [40] Competitive Landscape - **PCB and Substrate Competition**: Concerns exist regarding aggressive expansion plans from PCB players, which may lead to unfavorable competition dynamics. However, demand for AI PCBs is expected to grow at a CAGR of 40-50% from 2025 to 2027, while tier 1 suppliers' capacity growth is projected at 25-30% [3][4] - **Pricing Trends**: BT substrate prices have already increased by 20-25% since July, with further hikes expected due to T-glass shortages. ABF substrate pricing is anticipated to rise by 5-10% per quarter starting from Q4 2025 [20][22] Investment Ratings - **Delta Electronics**: Maintained a Buy rating with a target price of NT$670, reflecting a favorable long-term outlook despite valuation concerns [5][36] - **NYPCB**: Also rated Buy, with a target price of NT$280, supported by strong earnings growth potential [39] - **ZDT**: Rated Buy, with a target price of NT$220, driven by positive market dynamics in the ABF substrate sector [42] Risks and Considerations - **Market Risks**: Key risks include slower-than-expected growth in AI server power consumption, potential market share loss, and currency fluctuations impacting profitability [36][39][43] - **Valuation Concerns**: Some investors express discomfort with Delta's current valuation compared to historical averages, suggesting a need for caution [11] Conclusion - The Taiwan technology sector, particularly in AI power and related components, presents significant growth opportunities. Companies like Delta, NYPCB, and ZDT are well-positioned to capitalize on these trends, although investors should remain aware of competitive pressures and market risks.

Core Insights - Delta Electronics has inaugurated two new factory buildings in its Krishnagiri facility, part of a proposed $500 million investment in India, expanding its presence in Tamil Nadu [1][3] - The new factories are expected to create approximately 2,000-3,000 jobs over the next three years and will enhance production capabilities in various sectors including telecom, data centers, industrial automation, and EV charging [3][5] - Delta's manufacturing in Krishnagiri primarily serves local demand, with about 70% of production catering to the domestic market, while over 55% of its supply chain is sourced from local partners [6][11] Investment and Expansion - The Tamil Nadu Chief Minister has encouraged Delta to expand operations further into central and western regions of the state and to consider establishing a research and development center [2] - Delta's current manufacturing focus includes power supply and rectifier modules for the telecom sector and servo drives for industrial automation, with plans to invest heavily in EV OEM components and renewable energy [5][9] Technological Advancements - Delta has launched the Delta Smart Manufacturing (DSM) line, which is expected to increase productivity by 25-50% through automated production line changeovers and data-driven decision-making [8] - The company is also supporting the semiconductor ecosystem by providing solutions for manufacturing robots, UPS systems, and automation for cleanrooms [9] Market Potential and Challenges - Delta Electronics recognizes India's significant market potential for international electronics players, noting that the government has created a more conducive environment for setting up operations despite some policy strains [11][12] - The company acknowledges potential challenges from tariffs and geopolitical pressures but remains optimistic about growth driven by strong local demand [12]