New Taiwan dollar devaluation outside the industry, the industry emergency single-phase IC design 3Q operation exceeds expectations

After the Taiwanese IC design industry passed in mid-August, it was generally felt that the power of the urgent hurry in the end of the busy season was in line with China's 11-year long-term replenishment demand exceeding expectations, and its performance was expected to rise in full in September, accompanied by NT$ in early September. The devaluation also made it possible for the amount of exchange losses in the first half of the year to recover. The IC design stocks are well-being in and out of the industry. The recent recapitalization of funds will allow IC design to become a long-term indicator for Taiwan stocks again. After MediaTek and Group Group have stated that their fiscal targets for the third quarter are expected to increase, the rest of the Taiwanese IC design industry’s third quarter revenue, gross margin, and profitability performance will also move toward high standards.

Although the market demand in Europe and the United States in the third quarter was still very quiet, the demand for the back-to-school market was clearly not as expected. However, the market demand in the mainland and emerging countries blew up as expected. In August, there were many urgent orders and short orders. Taiwanese IC designers such as MediaTek, Morningstar, Creative, Ruiya, and Haoli, which have a relatively high proportion of these products and market performance, have reported that their revenue has grown ahead of schedule in August, while customer orders in mainland China have continued to increase in September. , coupled with many customers in the second half of the new products also have the demand for listing distribution, the majority of Taiwanese IC design industry's preliminary assessment of the September performance will steadily rise, and even set a new one in 2011.

Except for the performance of the industry in the third quarter that was significantly higher than expected, the pressure on the appreciation of the Taiwanese dollar, which has been plaguing the Taiwanese IC design industry, has recently shown a tendency to go backwards and downwards. This has led to the recognition of a lot of foreign exchange loss in the first half of 2011, and the gross profit margin. Obviously suppressed IC designers in Taiwan also saw some room for private money in the third quarter.

Taiwan-based IC designers stated that most of the exchange rate algorithms are based on the last day of the end of the season. Therefore, whether the short-term NT$ devaluation action can be fully reflected in the company’s financial performance in the third quarter still needs to be observed again. If Taiwanese currency is determined to go depreciation, the gross profit margin and off-site benefits of Taiwan-based IC design companies will have a lot of interest.

For Taiwanese IC designers, since the second half of 2010, the NT$ appreciation, annual revenue decline, low market share of smartphones and tablet PCs, and other bad news flooded the environment, leaving many companies in 2011 to date. The stock price fell more than 50%, but these seemingly structural negatives have a feeling of bottoming out in the third quarter of 2011. Although the 2011 full-year revenue recession is still inevitable, the recession will continue to shrink and 2012 Expected to resume growth, = NTD’s recent rise from depreciation to depreciation, and the penetration of new chips in tablet PCs and smart phones has also increased. Taiwanese IC design stocks have recently returned to the momentum of their favorite funds. The stock prices of the relevant players are constantly increasing.