The U.S. Federal Reserve (Fed) interest rate meeting ended. As expected, it announced a 2-yard rate hike. At the same time, it was announced that it would begin to shrink its balance sheet from next month. Ling Technology Co., Ltd. has reached a final agreement, Mailling will acquire Huirong at a premium of about 48%, and semiconductor supply chains such as Universal Crystal, World Advanced, Elan, Nuvoton and other semiconductor supply chains have also released their operating prospects this week, maintaining relatively optimistic; the following are the major events this week review:
Fed raises interest rates by 2 yards as expected to start shrinking balance sheet next month
The US Federal Reserve (Fed) ended its two-day Federal Open Market Committee (FOMC) interest rate meeting on the 4th. As expected, the Federal Reserve decided to raise interest rates by 2 yards, raising interest rates to a range of 0.75%-1%. This is also the largest rate hike since May 2000, and it is forecast that the balance sheet will begin to shrink in June.
The Fed announced a “progressive” reduction of nearly $9 trillion in balance sheet starting June 1, with cuts of up to $47.5 billion per month, including $30 billion in U.S. Treasuries, $17.5 billion in mortgage-backed securities (MBS) In three months, the Fed will also expand its balance sheet reduction efforts, cutting up to $60 billion in U.S. debt and $35 billion a month.
American business Melin Technology acquires Huirong at a premium of 48%
On the 5th, Huirong, a major manufacturer of flash memory control chips, and US-based Mailling Technology jointly announced that they had reached a definitive agreement, whereby Mailling Technology would acquire Huirong at US$114.34 per American Depositary Receipt (ADS) through a cash and stock transaction. , equivalent to a premium of 48%, the combined enterprise value will reach 8 billion US dollars, Mai Ling will also jump to the world’s top ten IC design factories.
Huirong said that after the merger of this strategic business, it is expected to bring about a transformational scale advantage. The combined company will have a highly diversified technology platform. The advanced NAND Flash control chip technology accelerates the development of enterprise, consumer and other related markets.
Electronic Technology Factory said the outlook for the top four semiconductor companies is still relatively optimistic
Recently, it has entered a period of intensive legal talks. Although the first quarter of the silicon wafer giant Global Crystal was affected by the loss of Siltronic’s stock evaluation, its net earnings per share fell to 4.01 yuan, approaching the 18th quarter low, but looking forward to the future, Chairman Xu Xiulan said that customers continue to sign long-term contracts, the production capacity is maintained at full capacity, and the amount of prepayments in the first quarter continues to hit a new high. He is optimistic that the operating outlook for 2022-2025 will remain unchanged.
The first-quarter financial report of the world’s advanced wafer foundries continued to record new highs. Driven by the opening of new production capacity and the rise in ASP, it is estimated that the revenue in the second quarter will reach 15.2-15.6 billion yuan, a quarterly increase of about 12.6-15.6%. The gross profit margin is also expected to break through 50%, and the single-quarter revenue and profit are expected to hit a new high.
Elan and Nuvoton warned of the decline in Chromebook demand and the impact of China’s lockdown. Elan believes that the second quarter will continue to grow, but its revenue forecast has been revised down from double-digit quarterly growth to single-digit quarterly growth. The annual shipment of notebooks is estimated to decrease by 7-9% year-on-year. Nuvoton is optimistic that the demand for automotive and commercial use is still quite strong, and it is expected to become a business activity in the second quarter. The production capacity is still in short supply.
The central bank enters the market and sells foreign exchange to prevent depreciation
The central bank announced on the 5th that the foreign exchange deposit amount at the end of April totaled 545.061 billion US dollars, a decrease of 3.709 billion US dollars compared with March, not only fell for two consecutive months, but also dropped to a new low in 7 months, mainly with the withdrawal of hot money, the central bank entered the market to sell foreign exchange related to devaluation.
The withdrawal of foreign capital and the 3% depreciation of the New Taiwan dollar in April. In order to avoid the continuous fall of the New Taiwan dollar, the central bank entered the market to adjust the depreciation to maintain the order of the foreign exchange market. Most of the major currencies depreciated against the US dollar, coupled with the central bank’s adjustment to maintain the order of the foreign exchange market, which led to a decrease in the amount of foreign exchange reserves.
Foreign capital has been on the run for two consecutive months and withdrawn from Taiwan stocks. According to the statistics of the Financial Regulatory Commission, the total net remittance of foreign capital and mainland capital in March and April totaled 11.579 billion US dollars (equivalent to about NT$341.3 billion), and the amount of remittance exceeded At the beginning of the outbreak in March and April 2020, the largest remittance volume in history was recorded during the same period.
Tesla plans to build a new Shanghai factory to expand production suppliers are expected to benefit
Tesla, a major electric vehicle manufacturer, is expected to deliver more than 1.4 million vehicles this year. Recently, it has been rumored that it plans to expand a new plant in Shanghai, doubling its production capacity, with an annual production capacity of 1 million vehicles, and the delivery volume is expected to rise again. , and the exclusive supplier of Bluetooth tire pressure detector (TMPS) factory system power will benefit simultaneously, coupled with the strong kinetic energy of UPS and energy storage, the legal person estimates that this year’s revenue is expected to exceed 3.5 billion yuan, an increase of 50% .
Apple Car Communication Commission is produced by Hon Hai, MIH Alliance members are expected to benefit
According to the market, Apple is still promoting the electric vehicle development project, and may entrust its long-term assembly partner Hon Hai to produce it. In addition to the expected benefits from Hon Hai Group members, MIH Alliance members are also expected to seize relevant business opportunities.
It is worth noting that Jinggang, a special alloy steel factory under Taigang Group, is not only a member of the MIH Alliance, but also the only domestic manufacturer with self-made mass-produced titanium alloys. In the future, Apple Car is expected to use titanium alloys, and Jinggang will play the role. Simultaneous benefits for key players.
April manufacturing PMI fell for 2 consecutive years, the outlook index for the next half year was near a 2-year low
The China Economic Research Institute announced on the 3rd that Taiwan’s manufacturing purchasing managers’ index (PMI) continued to drop by 1.5 percentage points to 56.3% in April, showing a second consecutive decline, mainly due to the tightening of new orders, the first since July 2020. See; meanwhile, the Outlook for the Next Six Months Index also expanded at the slowest pace since August 2020.
