'Anticipated' CEO of Qualcomm: I believe the Sino-American settlement will be approved

1. Texas Instruments' first-quarter operating income was US$3.79 billion, an increase of 11% over the same period; 2. Qualcomm CEO: I believe the China-US settlement will be approved for the acquisition of the NXP Fair; 3. The new iPhone will also use Qualcomm's Intel baseband chip, and the machine will rely on luck. 4. Pass Qualcomm is still Apple's new iPhone chip supplier in 2018; 5. The mainland smart phone market is very cold! Duntai conservative look Q2; 6. Spectrum's first-quarter net profit after tax increase by 15.56% Q2 revenue or quarterly increase 2.3%

1. Texas Instruments’ first-quarter operating income was US$3.79 billion, an increase of 11% over the same period;

According to the micro-messaging news, Texas Instruments (TI) announced its first quarter financial report, with operating income of US$3.79 billion, net income of US$1.37 billion, and earnings per share of US$1.35. Among them, earnings per share are not included in the company’s original The planned tax expense is 14 cents.

With regard to company performance and shareholder returns, TI Chairman, President and Chief Executive Officer Rich Templeton made the following statement:

 'Operating income increased by 11% over the same period of last year. TI's analog products and embedded processing products still maintain strong demand in the industrial and automotive markets.  'In the past year, we generated 5.7 billion in cash flow from operating activities. The U.S. dollar again reflects the advantages of the company's business model. Free cash flow increased by 17% compared to last year to US$4.9 billion, while it also accounted for 32.1% of operating revenue. This reflects our high quality product portfolio and efficient manufacturing strategy. Including 300 mm (12-inch) analog product production advantages.  'In the past year, through stock repurchases and dividend distribution, we have paid shareholders $5.1 billion, which is in line with our return on free cash flow. Shareholders' strategies are consistent. In the past 12 months, our distributed dividends accounted for 45% of free cash flow, reflecting its sustainability.  'The expectations of Texas Instruments in the second quarter of 2018 are : Operating income ranged from $3.78 billion to $4.1 billion, and earnings per share ranged from $1.19 to $1.39, including a discrete tax return valued at $10 million. The annual business tax rates for the 8 years and 2019 are expected to be 20% and 16% respectively, which is lower than previously expected 23% and 18%.

Free cash flow is a non-GAAP financial measure. Free cash flow refers to cash flow from operating activities less capital expenditures.

Compared with the same period of last year: Simulation: (Including power supply, signal chain and large-capacity analog service)  The increase in operating revenue was mainly due to the power and signal chain products. The large-capacity simulation business was in line with the past.  The main benefit of the increase in operating profit Higher operating income and related gross profit margins. Embedded processing: (Including connection of microcontrollers and processors)  Processor products lead growth, both product line operating revenues have achieved growth.  Increase in operating profit is mainly due to Higher operating income and related gross profit margin. Other: (Including DLP® products, calculators, custom ASIC products) ● Operating income decreased by US$46 million, operating profit decreased by US$23 million.

2. Qualcomm CEO: I believe the Sino-American settlement will be approved for the acquisition of the NXP Fair;

Tencent Technology News According to foreign media reports, Qualcomm CEO Steve Mollenkopf (Steve Mollenkopf), said Sino-U.S. tensions hinder the bulk of the transaction, but this situation may change in time, Qualcomm can eventually finalize the acquisition NXP's deal.

In an interview with foreign media on Thursday, Molenkov said: 'Now is not a good environment for big deals. But within 90 days, the situation may become very different from the present.'

Qualcomm is waiting for Chinese regulators to approve its acquisition of the trading program of Dutch competitor NXP. Molenkov said: 'We have obtained approval from 8 jurisdictions in the 9 jurisdictions of this M&A transaction. . '

As the Chinese government has not yet approved, these companies have withdrawn and resubmitted the application in order to gain more time.

Morenkov said: 'I think that approving a transaction is very unusual for other countries in the world, but it is not the case for China. It is a good thing for China to complete this transaction. I believe This kind of thing will happen.'

As China-US trade tensions have increased, Qualcomm has been in trouble. The semiconductor industry is considered the most susceptible technology industry.

Morenkov optimistically believes: 'The real negotiations between the Chinese and US governments are beneficial to Qualcomm.'

He said: 'The real negotiations will often lead to reconciliation and lead to the end of hostilities. I think the situation is likely to be like this. We do not know when Sino-U.S. relations can be reconciled, but we are ready to do both.'

3. The new iPhone will also use Qualcomm's Intel baseband chips, and it will rely on luck;

According to many analysts' predictions, Apple is very likely to introduce three new iPhones this year: 5.8 inches, 6.5 inches with OLED screens, and 6.1 inches with LCD screens. Although there have been rumors that due to high-pass The patent lawsuit between (Qualcomm) has not been resolved. Apple may transfer the baseband chips to Intel entirely. However, according to the latest news from foreign media, Apple may not be able to do so this year. The baseband chips that will be supplied by Qualcomm will still be purchased. In other words, for the fruit powder, buying a new iPhone this year may go through the feeling of being a lottery. Will the purchase of that version only look at luck?

"Fast Company" quoted Apple insiders saying that (for this year's new iPhone) Apple plans to baseband chips, 70% will be supplied by Intel, the remaining three transactions to Qualcomm. Since the iPhone 7 generation so far (including iPhone 8, iPhone In the X generation, both the Intel and Qualcomm baseband chips are used in Apple's iPhone. Only in the iPhone 7 generation, Qualcomm is more likely to supply than Intel. And it's because of the iPhone 7 generation. The incorporation of Intel's baseband chips has laid the groundwork between the Apple and Qualcomm's initiating patent warfare (for the long-term reason for the high-pass licensing of patent licensing fees, etc.).

The report pointed out that Apple’s failure to completely get rid of Qualcomm in baseband chips this year was due to Intel’s possible difficulties in volume production. “Fast Company” pointed out that the yield rate may only exceed 50%. However, Intel On the other hand, there is great confidence that this summer, the yield rate will continue to rise. The report also pointed out that if Intel's baseband chip yield can steadily increase, it is possible that Apple will transfer more orders to Intel.

However, "9to5mac" pointed out that the "Fast Company" report was inconsistent with many previous reports. For example, in October last year, the "Wall Street Journal" reported that Apple will hand over orders for new iPhone baseband chips to Intel and MediaTek and completely abandon Qualcomm. But in the "Fast Company" report, MediaTek was not mentioned.

In addition, in November last year, Kelvin analyst Guo Mingyao, who had been very accurate on the news, also provided the same view as “Fast Company”, that is, Apple will hand over 30% of the new iPhone baseband chips to Qualcomm. But In early February of this year, Guo Mingwei changed his mind to believe that Apple will completely abandon Qualcomm's baseband chips and switch to Intel completely.

Apple has traditionally used more than one supplier to distribute risks and reduce dependence on suppliers. However, this practice has caused more problems in the consumer market. This includes the iPhone 6s generation, central processing. The device was handed over between Samsung and TSMC. As a result, the performance of the two processors was found to have a significant gap and a "chip gate" incident broke out. Since then, the iPhone 7 generation, the baseband chip was supplied by both Intel and Qualcomm, but it was found The use of Intel's baseband chip style, in the case of weak signals, the reception was significantly affected; also found that Apple has limited the ability of the iPhone 7 Qualcomm baseband chip, so that the iPhone 7 with different baseband chips can perform the same, Again sparked discussion.

According to analyst Guo Mingzhi, the baseband chip of the iPhone's product portfolio will be as above in 2018. (Pictures/MacRumors)

From this point of view, if the supply capacity of Intel's baseband chips cannot be smoothly improved, Apple will have to continue to adopt Qualcomm's baseband chips this year. In other words, the difference in the performance of the new iPhone's baseband chips will continue to be a topic of discussion this year. If Apple supplies iPhones with different baseband chips at the same time in a single market, then it will trigger more problems. However, as smart as Apple, it should not repeat the same mistakes. Take the iPhone 7 as an example, Apple's version in Taiwan, It is a version with Intel's baseband chip, and it is not possible to buy a model equipped with a Qualcomm baseband chip at the station.

4. Pass Qualcomm is still Apple's new iPhone chip supplier in 2018;

The relationship between Apple and Qualcomm is getting more and more severe. Although Apple intends to shut down with Qualcomm, the latest news has come out. Due to the unpredictable yield of Intel Modem chips, the new iPhone, released later this year, still can't completely shake off Qualcomm chips. .

According to a report from the US-based commercial media "Fast Company," on Thursday, the 2018 version of the new iPhone's Modem chip orders, Intel only eat 70%, the remaining 30% by the high pass package.

The report pointed out that the Intel Modem chip line has encountered a bottleneck, and the yield rate is not as good as expected. Only 50% of the product line is in the lead. Although Intel is confident that it can improve this summer, Apple apparently does not want to take this risk.

However, if the status of the Intel production line can improve immediately, then Apple may give Intel more shares. The report pointed out that during the transition period of changing suppliers, Apple continued to observe Intel's ability and continued to correct.

Earlier, the Wall Street Journal once reported that Apple may use MediaTek chips, but "Fast Company" did not mention MediaTek in its report today.

5. The mainland smart phone market is very cold! Duntai conservatively looks at Q2;

Duntai held a corporate briefing on the 27th. Chairman Hu Zhengda bluntly stated that the smart phone market in the mainland has slowed down. In addition to the Sino-US trade warfare and other factors, Duntai views the second quarter conservatively, and continues to be optimistic about IDC (touch and drive). IC) will be the mainstream of the market, Duntai has a leading edge in this field.

Chairman Hu Dazheng pointed out that according to past experience, the second quarter will usually be better than the first quarter, but the smart phone market in mainland China continues to slow down, plus the Sino-US trade war and the subsequent assumption that Huawei is also affected, are all variables, so Duntai was relatively conservative in the second quarter. Hu Dazheng further stated that the mainland’s current full-screen smartphone penetration has continued to grow, not only at 18:9, but even at 21:9. This is positive news for Duntai because Duntai In-cell technology is very suitable for full-screen products, including ASUS (2357) ZENFONE 5 and Nokia using Dundee's IDC, and MOTO has not been adopted in the past, followed up in MOTO G6, In addition, Duntai new products The specification is based on the COF scheme. Compared with the previous COG scheme, it can further increase the proportion of the screen. This year, it will be mass-produced in the future and will also facilitate the development of Duntai in the in-cell field.

In response to the issue of upstream shortages, Hu Zhengda stated that the current supply chain is unstable and that 8 wafers are very hot, leading to rising costs. The problem of missing materials cannot be ruled out. Currently, the supply chain is not very satisfactory, and if this year's products are heavy, Have more chances to create short-term shortages.

The CFO added that the smart phone market in mainland China has fallen into a downturn this year, but Duntai’s first quarter has been profitable in the first quarter for the first time in recent years. DunTai is also optimistic that the future IDC (Touch and Drive IC) will be the mainstream of the market. Duntai is a leader in this area. Business Times

6. Spectrum's after-tax net profit increased by 15.56% in the first quarter of Q2, or Q2 revenue increased by 2.3% in the quarter

According to the micro-message news, Spectrum Rui held a law meeting yesterday (26th), and disclosed consolidated revenue of US$80.65 million for the first quarter, a decrease of 8.61% in the quarter, an increase of 6.63% year-on-year; operating gross profit of US$32.94 million, a decrease of 7.79% in the quarter. An increase of 8.86%; After-tax net profit of $13.81 million, an increase of 15.56%; After the ex-rights, the basic earnings per share was $0.18, equivalent to NT$5.3.

Looking forward to the second quarter, Spectrum estimates that the second-quarter consolidated revenue forecast will be between US$75.5 million and US$82.5 million, which represents a quarter-on-quarter decrease of 6.4% from the first quarter to a quarterly increase of 2.3%; About 40%-43%, combined operating expenses range from $18.25 million to $19.25 million.

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