In his latest survey, the TF International Securities tech analyst, Ming-Chi Kuo pointed out today that in the next few quarters, Win Semi’s business performance will continue to improve. And will not be affected by the weakening trend of orders from major customers Lumentum.
According to him, its overall capacity utilization rate will increase from 15-20% at the bottom of 1Q23 to 30-35% and 35- 40% in 2023 and 3Q23, respectively. And this is due to the growing orders for epi wafers and smartphone power amplifiers (PA).
Recall that in February this year, the TF analyst stated that Sony will replace Lumentum as the exclusive ToF VCSEL supplier for the upcoming iPhone 15 Pro and Pro Max. Upon his claim, Lumentum shares dropped shortly.
Why WIN Semi Market will Grow: Ming-Chi Kuo
Win Semi is a Taiwan-based semiconductor company known for gallium arsenide (GaAs) microwave integrated circuits (MMICs) and radio frequency integrated circuits (RFICs). Meanwhile, Ming-Chi Kuo based Win Semi’s business momentum on four standpoints which he identified as follows:
1. Win Semi’s epi wafer has been authorized by Apple and is anticipated to ship to Apple for the first time in 2H23 for use in the iPhone 15 series. The market share of Win Semi’s epi wafer is expected to keep growing over the next few years, promoting vertical integration and profit enhancement.
2. SMIC will likely start shipping 5G chips as early as 2H23, with Win Semi as the exclusive PA foundry.
3. The proportion of Chinese brands adopting local PA suppliers continues to grow, contributing to the ongoing increase in the market share of PA production for Win Semi.
4. Based on the above factors, Win Semi’s overall capacity utilization rate will increase from 15-20% at the bottom of 1Q23 to 30-35% and 35- 40% in 2023 and 3Q23, respectively, with further growth expected in 4Q23.