Aixtron purpose of this thread

Ariva should add an „I love you button“ and I would press that for every single post that you share with us here, CWL.

You are the brain of this Forum, while Joss(the fireman) brings the soul, baggo, Alex et al the heart.

Thanks for the joy and productivity!  

Hi all,

Thank you for the kind words.  It is my pleasure!

Best Regards,
CWL  

https://www.chinatimes.com/realtimenews/20220628004967-260410?chdtv

"After the completion of the pricing of the private equity common stock of Fucai (3714), the expansion of production was reassured. Fucai Investment Control announced on the 28th that it will spend 673 million yuan to purchase advanced epitaxy equipment from Aixtron SE, a leader in MOCVD equipment, and Micro LED’s Expansion turns concrete."

Note 673M Taiwanese yuan is $22.4m

Epistar is a production partner of PlayNitride.  

Hi CWL,
Thank you for the information, my chinese is unfortunately very underdeveloped. That's why I ran the text through the translator. He translated the following for me.

www.chinatimes.com/realtimenews/20220628004967-260410?chdtv

"Following the completion of the pricing of the private placement of Fuchai (3714) ordinary shares, the expansion of production has been secured. On behalf of its subsidiary Crystal Power, Fuchai Investment Holdings announced on 28 December that it had spent USD 673 million to purchase advanced epitaxy equipment from leading MOCVD equipment manufacturer Aixtron SE.


The announcement of this acquisition of more than $600 million worth of MOCVD equipment is particularly noteworthy after the private placement price was set.

Aixtron SE is the world's largest manufacturer of MOCVD equipment with a global market share of over 60% and is the leading manufacturer. According to Fusai's announcement, the equipment acquired by Aixtron is advanced epitaxy equipment with a total cost of $673 million and payment will be made in accordance with the terms of the contract."

There is always talk of USD 673 million .      USD!
Did something go wrong with my translation???
Best regards
Raven 111
 

Hi CWL,
Thank you for the information, my chinese is unfortunately very underdeveloped. That's why I ran the text through the translator. He translated the following for me.

www.chinatimes.com/realtimenews/20220628004967-260410?chdtv

"Following the completion of the pricing of the private placement of Fuchai (3714) ordinary shares, the expansion of production has been secured. On behalf of its subsidiary Crystal Power, Fuchai Investment Holdings announced on 28 December that it had spent USD 673 million to purchase advanced epitaxy equipment from leading MOCVD equipment manufacturer Aixtron SE.


The announcement of this acquisition of more than $600 million worth of MOCVD equipment is particularly noteworthy after the private placement price was set.

Aixtron SE is the world's largest manufacturer of MOCVD equipment with a global market share of over 60% and is the leading manufacturer. According to Fusai's announcement, the equipment acquired by Aixtron is advanced epitaxy equipment with a total cost of $673 million and payment will be made in accordance with the terms of the contract."

There is always talk of USD 673 million .      USD!
Did something go wrong with my translation???
Best regards
Raven 111
 

The MOCVD order by Epistar is worth 673M New Taiwan Dollar (NTD), which is $22.65M or Eur 21.67M.  

Hello CWL

Thank you very much for the quick reply.
Then it is probably unfortunately a mistake in my translation.
Thanks for your effort

With kind regards
Raven 111  

Hello CWL

Thank you very much for the quick reply.
Then it is probably unfortunately a mistake in my translation.
Thanks for your effort

With kind regards
Raven 111  

@CWL1 and Hi to all,

interesting thought pattern. I would have put Rohm into the corner of Tokyo Electron.
Having read your article I revisted some conference notes with Guido answering questions and making comments.

"Market leader is Tokyo Electron"
"our tool is up to their specs and better"
-lower cost of ownership
-fully automated
-upgrade possibility from 6 to 8'
"task is to convert customers on their next investment cycle"

Maybe they succeeded to convert ROHM. Regards
 baggo-mh

 

@CWL1
Could you please helpme out here? If I search for 3714 at the Taiwan Stock exchange - I get the following message.

EPISTAR Corporation (Code:2448) and Lextar Electronics Corp. (Code:3698) will transfer its shares to ENNOSTAR Inc. (Code:3714) in accordance with the Business Mergers and Acquisitions Act and become a 100% owned subsidiary of ENNOSTAR Inc.. The trading of EPISTAR and Lextar’s listed securities will be suspended from December 24, 2020. Share transfer between December 26, 2020 and January 6, 2021 is prohibited . The securities will be delisted on January 6, 2021. ENNOSTAR's securities will be listed and available for exchange on January 6, 2021.

So, would it be correct to assume the following:
- Epistar is history
- ENNOSTAR the new star on the Aixtron horizon
- Fucai and Ennostar is one and the same entity
- Investors of the recent capital raise of ENNOSTAR are - 2409 AU Optronics and 3481 Innolux
Thanks for your input.

You certainly deserve the "I love your research/comments button"

Maybe we can see eachother again in 2023 at the AGM and share a few drinks with whoever is interested in a personal meeting.

Regards
baggo-mh

 

Hi Baggo,

I would love to reunite with you at the AGM in 2023. Hopefully Guido could make it possible.

Your analysis on Ennostar and Epistar is spot on.  Ennostar is the parent/holding company of Epistar.  The order was originated by Epistar.

I also concur on the ROHM SiC possibility.

Now we can add Epistar, another important manufacturer besides PlayNitride, in microLED.  Epistar and Playnitride collaborate and compete at the same time for the business of Apple and Samsung.  I think Epistar is the second source of epi wafers for PlayNitride which can do internal epi wafer production but is relatively  young as a mass microLED producer.

SanAn is another major microLED player along with several others in China that I am sure we would hear about soon.  

The signs that microLED is accelerating are clear.  The Epistar's order likely has come earlier than Aixtron anticipated.  That gives Aixtron room to increase its 2022 order guidance IMO.  

Because almost all microLED's are used in the consumer market, I think microLED segment would become the largest of Aixtron's business just a few years from now.

Best Regards,
CWL
 

Hallo,
hier ein Artikel aus der Schweizer Blick das Samsung offenbar doch QD OLED Fernseher baut.

https://daskannwas.ch/news/...tm_medium=Teaser&external_link=true

Gruß
bestfuture  

https://daskannwas.ch/news/...tm_medium=Teaser&external_link=true  

https://www.blick.ch/  

Hi CWL1,

we should make it a plan to re-unite at AGM 2023.
I am sure Guido will make it possible for you to attend.

It would be great to meet a few of the old time "Aixtroneers" from here and from Wallstreet Online (kloben, solartec for example)

Alexandrow is from the Aachen area originally and knows a few places to have good food and a few drinks. Champagne (but not only) for our friend from France, Pinotin for the entrepreneurial wine lovers, smoky Islay single malts and of course lots of beer and wheat beer.

MicroLED  will be a huge market, but the growth rates in SiC will outexcellarate it (in value terms) in the near future.
Foxconn is part of the game now too, but not Aixtron customer yet.
https://www.automobil-industrie.vogel.de/neue-konkurrenz-fuer-rohm-und-infineon-a-1052077/
and

https://www.elektronikpraxis.vogel.de/elektroauto-ambitionen-foxconn-setzt-auf-sic-leistungshalbleiter-a-1051911/?cmp=nl-95&uuid=54ae8f6c36870be00816410ead7f0b0c

Greetings
 baggo-mh

 

Hi Baggo,

Your itinerary looks great!  Who could resist?  The share price would be so high by then such that the rowdy Aixtroneers with Kosher in hands might do a victory dance at the AGM lunch.  That would be a nightmare for Guido.

Regards,
CWL

 

I meant Kolsch of course. You've got the idea.  

No question the growth of SiC is taking place fast.

In #1089 and 1090, I estimated ~500 G5 equivalent tools needed by 2025 to satisfy 20m EV.  

A latest industry projection confirmed the 20.6m EV number by 2025.  

https://www.bloomberg.com/news/articles/...20uptake%2520in%2520China.

One 6" SiC wafer provides chips for 3-8 EV's depending on what models and who is talking.  

In #1094, Baggo posted what Aixtron said:
"Annual volume 30-50 systems/year for the next 5 years"

So the numbers roughly match (Keep in mind that there are already installed SiC epi tools).
 

Correction is an opportunity: Up to BUY from HOLD

Correction with the semi equipment market. 5 weeks ago, Aixtron shares surpassed the AlsterResearch price target or EUR 27, resulting in a valuation that fully reflected the quality of the business and the growth perspectives at the time, triggering our downgrade to HOLD. Relative valuation showed a significant premium to a broad semiconductor equipment peer group, and only a small discount to ASML (11% on EV/EBITDA 23E). Since then, shares of Aixtron have experienced a significant rerating by 23%, correcting even more sharply than the peer group and widening the discount to ASML to 16%.

On its own cycle. The market correction is driven by fears of a cyclical downturn of semiconductor end markets, which tends to hit the equipment manufacturers hardest. However, this is not doing Aixtron justice, as it is increasingly serving uncorrelated end markets with strong structural growth drivers, like the SiC power market, which is driven by electric vehicles and charging stations, and the potentially huge and only now emerging market for Micro LEDs. Order activity thus looks set to remain buoyant into H2.

Quality not in doubt. Over time, Aixtron has steadily gained market share and now has a near-monopoly position in the MOCVD market for the deposition of compound semiconductors. This allows the company to widen the gap to the competition with the help of a generous R&D budget. Pricing power is thus likely to improve further. At the same time, the weaker EUR versus the USD is supportive of the gross margin and might provide upside to the guidance of a gross margin of 41% and EBIT margin of 21-23% for 22E.

Upgrade to BUY, unchanged PT EUR 27. Considering all of the above, it seems like a good opportunity to get exposure to a high-quality business largely decoupled from the overall business cycle. We upgrade Aixtron from HOLD to BUY with unchanged price target of EUR 27.00.

https://research-hub.de/companies/research/...er&utm_medium=email

Gruß
baggo-mh

 

AIXTRON: Short-Engagement von Canada Pension Plan Investment Board zurückgefahren - Aktiennews

reduced form 1,97% to 1,84%

https://www.aktiencheck.de/exklusiv/...ckgefahren_Aktiennews-14617366

 

erhöht Anteile auf 5,16 %.
 

Groundbreaking for Infineon's Malaysian plant
The total investment is about 14.4 billion

According to foreign media reports, on July 7, Infineon invested more than 2 billion euros (about 14.4 billion yuan in total) to officially lay the foundation stone for the third plant built in Kulim, Malaysia. The construction is expected to be completed in the third quarter of 2024, creating About 900 jobs.

Infineon said that the plant mainly involves key processes such as epitaxy and wafer cutting , and will significantly expand the production capacity of wide-bandgap (silicon carbide and gallium nitride) semiconductors. The first batch of wafers is planned to be produced in the second half of 2024 . goods.
Moreover, when its Kulim 3 plant is fully equipped, it will generate additional annual revenue of 2 billion euros for Infineon from silicon carbide and gallium nitride products.

In the next few years, Infineon's 6"/8" silicon production line in Villach, Austria will also be retrofitted for the production of SiC and GaN, serving as an innovation base and global competence center for their wide bandgap technology, aiming for this century $1 billion in revenue from SiC-based power semiconductors in the medium term .

 

13 July 2022

Infineon lays foundation of third wafer fab module in Kulim, Malaysia

http://www.semiconductor-today.com/news_items/...nfineon-130722.shtml  

Infineon is on schedule to invest 2B Eur in Malaysia focusing on the front-end epi and wafer cutting for SiC and GaN power semi.  Assuming ~30% of the investment goes to MOCVD tools, it can be a 600M opportunity for Aixtron.  If Aixtron wins the business which is highly likely, orders should start in mid 2023  to meet Infineon's H2/2024 production schedule.    

There was a downward Q2 earnings revision by certain analysts from 94.3m to 93m today after the close.   In addition, the new Q3 earning estimates is now 131m, short of the 140m projected in a previous post (#1299).  Furthermore, the 2022 rev estimate is now 489m which is short of the anticipated 500m considering the benefit of currency tailwind.   Pessimism is being propagated for whatever the reason or source.  Traders who got the information ahead were front running.