Summary of Conference Call on Greater China Technology Semiconductors Industry Overview - The focus is on the **NOR Flash** segment within the **Greater China Technology Semiconductors** industry, particularly regarding **Taiwan's suppliers** and **Winbond Electronics Corp** [1][2]. Key Points 1. **Pricing Trends**: - Taiwanese suppliers are catching up on the NOR Flash pricing hike, with **GigaDevice** raising prices by **5-10%** in Q3 2025, which is expected to set a benchmark for **Winbond** in Q4 2025 [2][3]. - Winbond is anticipated to gain market share due to shifts in customer sourcing strategies [2]. 2. **DDR4 Market Outlook**: - There is an undersupply of **DDR4**, which is likely to lead to profitability for Winbond sooner than expected. The concern regarding inventory digestion is considered overdone [2]. - Major memory players, including **Samsung**, are targeting another double-digit contract pricing hike in Q4 2025, indicating strong demand [2]. 3. **Valuation Methodology**: - Winbond is valued at **1.2x** its projected **2026 P/B**, aligning with the approach for other Greater China memory IDM peers, reflecting the industry's high volatility [7]. Risks Identified - **Upside Risks**: - Increased NOR Flash pricing due to stronger-than-expected demand. - Higher-than-expected DRAM pricing amid ongoing supply shortages. - Faster-than-anticipated development of SLC NAND technology [9]. - **Downside Risks**: - Potential downcycle in NOR Flash pricing due to weaker demand. - Lower-than-expected DRAM pricing due to oversupply. - Slower-than-expected development of SLC NAND technology [9]. Additional Insights - The overall industry view is rated as **Attractive**, indicating positive expectations for performance over the next 12-18 months [3]. - Winbond's stock is currently rated as **Overweight**, suggesting that its total return is expected to exceed the average total return of its industry peers [62]. Conclusion - The NOR Flash segment is experiencing significant pricing adjustments, with Winbond positioned to benefit from market dynamics and potential profitability in the DDR4 market. The valuation reflects a cautious optimism amid identified risks, making it a noteworthy player in the semiconductor industry.