Asia_Semiconductor_Sector_131202 .pdf

Information Technology / Asia ex Japan 2 December 2013 Three themes for 2014 Asia Semiconductor Sector • We forecast semiconductor revenue globally to increase by 7% Positive YoY for 2014, up slightly from 6% in 2013E Neutral (unchanged) • Smartphone/tablet ICs, broadband-related ICs, and MEMS/sensor chips should see the most shipment growth Negative • Our top picks within the sector are Mediatek and SK Hynix, which are exposed to our themes from positions of strength In terms of industry segments, we Overall, we see the leading fabless expect the main themes in the Asia and foundry companies continuing foundry industry in 2014 to be 28nm to outperform the leading back-end wafer-price competition, capex players in top- and bottom-line competition (among TSMC, Samsung growth in 2014, on the back of Eric Chen Electronics [SEC], and Intel), and the strong China smartphone demand, (852) 2773 8702 China story for Semiconductor and a more consolidated industry. eric.chen@ Manufacturing International Corp