The Must Read PSA Weekly Research Round-up (week to 01 Mar)

REPORTS: Major report – The Global EUV Opportunity Set as 7nm Goes Mainstream / Camera Industry – Is the Data Denoting the New Normal, or a Temporary Holding Point? / Japan Stock Market Strategy – Investing When the Risk Protects You / INDUSTRY INSIGHTS: We discus the outlook for 10.5G capex / We look at the latest surprise in the HDD roadmap, with implications for Hoya (7741 JT) / Foldable phones and the supply chain / MACRO/MARKET: Japan, China data / Analyst downgrades are on the rise / COMPANY INSIGHTS: Subaru is ranked top for safety in the US / Impressive Jan figures for office efficiency software developer Cybozu / Nintendo buybacks and the new Pokémon games for Switch / ZOZO’s ZOZOTOWN loses another brand

The Weekly Comment by Pelham Smithers

EUV Commercialization Draws Attention to the Mask Writer War

As we wrote in our 27 Feb report on Extreme Ultraviolet Lithography (EUV), the semiconductor industry has had an intriguing choice between opting for ever more complex multiple-patterning solutions using Deep Ultraviolet (DUV) technology or shifting to the untried EUV alternative. As it happens, a similar situation is occurring in the, admittedly, much smaller (photo) mask writer market (US$600mil market vs US$12bil lithography market).
In the semiconductor manufacturing process, the first bit you do after designing the semiconductor is make the photomask. The simplest way to explain a photomask is that it is the IC version of a photographic negative. However, whereas you take one negative and create a (2D) photograph from it, because the semiconductor process is very much a 3D process, you need to break up the semiconductor design so that a photomask only has the bit of the design needed for any one part of the fabrication process. At leading edge technologies, you need around 50 photomasks to fabricate a DRAM, 40 for (3D) NAND and 80 for logic, such is the extent of the design deconstruction………

Reports / Flash Notes Published This Week: Headlines at a Glance

1. The Global EUV Opportunity Set as 7nm Goes Mainstream
2. Camera Industry – Does the Data Denote the New Normal, or a Temporary Holding Point?
3. Japan Stock Market Strategy: Investing When the Risk Protects You

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics / Gaming

1. Sony (6758 JT): New Xperia Phone Looks Better than Expected, but…
2. Nintendo (7974 JT) and the Share Buyback Issue / New Pokémon Titles for the Switch
3. Nexon (3659 JT): More Bidders for NXC
4. Capcom (9697 JT): Sales of Resident Evil 2 Remake Hit 4mil

Technology: Industrial Electronics / Precision / Components

5. Outlook for 10.5G Capex
6. Camera Industry Update
7. Nikkei Article: Toshiba Memory to Post CY18 1Q Operating Loss – Read-Across to Toshiba (6502 JT)
8. Positive Bloomberg Report Sends MLCC-Plays Higher

Chemicals / Materials

9. Foldable Phones and the Supply Chain
10. The Latest Surprise in HDD Roadmap: Implications for Hoya (7741 JT)
11. Sumitomo Chemical (4005 JT): Downward Revision Not Surprising
12. Feedback from World Smart Energy Week: Lithium Ion Batteries


13. Stabilisation of Residual Values in the US
14. Subaru (7270 JT) Tops US Reliability Study
15. Toyota’s (7203 JT) Lexus on a High

Auto Parts / Machinery

16. Ichikoh (7244 JT) Falls on Brake Light Issue

Internet / eCommerce

17. ZOZO (3092 JT) Suffers Yet Another Withdrawal from ZOZOTOWN

Enterprise Software

18. Pasona (2168 JT) Urged to Spin Off / Merge Subsidiary Benefit One (2412 JT)
19. Cybozu Inc (4776 JT): Strong January Sales, OP figures


20. Chugai Pharma(4519 JT): Readthrough from Roche Acquisition of Spark Therapeutics

Macro / Market

21. Japan, China Macro Data Releases
22. Analyst Downgrades Increasing

PSA Company Visits, Tours and Interviews

• Visited: Mitsubishi Chemical Holdings (4188 JT), Ferrotec (6890 JT), iStyle (3660 JT)
• Attended a plant tour at: Nippon Shokubai (4114 JT), Ichikoh (7244 JT)
• Attended earnings meeting for Nabtesco (6268 JT)
• Attended the World Smart Energy Exhibition in Tokyo

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