Chip Inventory Level Not Improving at All, Says CLSA’s Hou

The video discusses the current state of the chip market, highlighting cautious market trends and the impact of geopolitical factors like trade wars and Huawei on inventory cycles. It examines the effects of US tax cuts on semiconductor companies, leading to overexpansion and share buybacks. The video also emphasizes the resilience of Taiwanese chipmakers due to their advanced technology and new applications like 5G and AI.

What is the current sentiment among companies regarding a second-half rebound in the chip market?

• Optimistic and confident

• Pessimistic and doubtful

• Cautious but hopeful

• Indifferent and neutral

How have geopolitical factors like trade wars and Huawei affected the chip inventory cycle?

• They have had no impact on the inventory cycle.

• They have accelerated inventory correction.

• They have improved inventory levels significantly.

• They have distorted the inventory cycle, preventing aggressive correction.

What was one consequence of the US tax cuts on semiconductor companies?

• Decreased share prices

• Decreased cash flow and reduced expansion

• Increased cash flow leading to overexpansion

• Stagnant earnings per share

How did companies utilize the extra cash from US tax cuts?

• Expanded into new markets

• Invested in new technologies

• Increased employee salaries

• Bought back shares to reduce share count

Why are Taiwanese chipmakers expected to outperform during the downturn?

• They possess leading-edge technologies and capture new opportunities.

• They focus on low-cost manufacturing.

• They have the largest market share globally.

• They rely heavily on government subsidies.