Greater China Semis_ August_ IC production 18 YoY

Summary of Greater China Semiconductors Conference Call Industry Overview - The conference call focused on the semiconductor industry in Greater China, specifically integrated circuits (IC) production and import data for August 2024. Key Points IC Production and Import Data - IC Production Growth: August 2024 saw IC production increase by 17.8% YoY, down from 26.9% YoY in July 2024, indicating a solid market demand despite a slowdown [2][10] - IC Import Volume: The import volume rose by 14.5% YoY in August, compared to 16.3% YoY in July 2024, reflecting a recovery in demand [3][10] - IC Import Value: The import value increased by 11.1% YoY to US$33.1 billion in August, contrasting with a decline of 14.9% YoY in July 2024 [3][12] Monthly Trends - Production Volume: The production volume in August was 37.3 billion units, a decrease of 0.5% MoM [3] - Import Volume: The import volume reached 49.8 billion units, with a 1.1% MoM increase [3] - Average Selling Price (ASP): The ASP for IC imports decreased by 0.9% MoM in August [3][10] Inventory Levels - Days of Inventory (DOI): The DOI for China's electronics sector was 58 days in July 2024, consistent with historical levels, indicating healthy inventory management [3][17] Revenue Insights - Taiwan Semiconductor Revenue: Revenue for major Taiwan-listed semiconductor companies grew by 19% YoY in August, down from 32% YoY in July 2024 [4][24] - Foundry Revenue: Foundries reported a 30% YoY revenue increase in August, although this was a decline from 40% YoY in July 2024 [5] - IC Design Revenue: IC design revenue grew by 2% YoY in August, down from 31% YoY in July 2024 [5] Investment Recommendations - Analysts recommend focusing on mature nodes and companies with strong drivers such as new product ramps and share gains. Suggested stocks include Naura, ACMR, SICC, Maxscend, SG Micro, AccoTest, ASMPT, Montage, Will Semi, and Hua Hong [2] Additional Insights - The correlation between revenue and production units is significant, with SMIC's revenue showing an 84% correlation with IC production units in China, and Hua Hong's revenue showing a 76% correlation [14][24] - The overall data suggests a continued recovery from the demand downcycle, with a preference for stocks that can leverage new product introductions and market share gains [2][5] This summary encapsulates the key findings and insights from the conference call regarding the semiconductor industry in Greater China, highlighting production, import trends, revenue growth, and investment opportunities.