半導體0719

July 19, 2011

Asia Pacific: Technology: Semiconductors

Equity Research

Another inventory correction: 3Q down, 4Q up; Buy TSMC (on CL)

3Q outlook: Wafer -10% qoq, but packaging and semi up qoq

We now estimate TSMC/UMC revenues to decline 6.5%/12% qoq in 3Q11, due

to the recent order cuts across nearly all applications. Further, semi packaging

orders have also weakened, but shipment is still tracking up 5% qoq in 3Q,

consistent with semi industry leader Fairchild’s 3Q guidance. For Mediatek and

MStar, we expect rev to increase 12%-15% qoq with stable margins in 3Q11,

partially due to handset inventory restocking among Chinese handset makers.

Meanwhile, our Asia-Pacific tech hardware team estimates about 15% qoq

increase in most PC OEMs orders in 3Q11. In terms of visibility, PC OEM/semi

packaging companies expect improving clarity in Aug/Sept. We revise our

2011E-2013E EPS for our coverage by -27.3% to +1.8% to reflect inventory

correction, competition. Consequently, we lower our 12-m TPs by up to -14%.

Inventory correction to end in 3Q; demand to pick up in 4Q

We attribute the inventory correction in 3Q11 to overstocking post the Japan

earthquake, soft demand, and macro concerns leading to minimal inventory.

On a positive note, downstream is trending much better than upstream—

indicating effective inventory clearing—Chinese handset makers have started

to re-stock; Nokia component order should recover in late 3Q11 based on our

supply chain checks; and CNY is early in 2012 (late January).

Maintain Buy (on CL) on TSMC

We note that TSMC outperformed when its utilization was low (as seen

since late-April, TSMC +2% (incl. cash div) vs. TAIEX -6%). We expect

TSMC’s capex to decrease from US$7.8 bn/US$6.5 bn to US$6.9 bn/US$6

bn in 2011E/2012E given the inventory correction, potentially alleviating

market concerns over excess foundry capacity. We think TSMC’s 28 nm

capacity is on track to reach 10K WPM by end of 2011 for the next wave of

mobile computing and arrival of ARM-CPU. In our view, TSMC’s upcoming

3Q guidance should help remove uncertainty over the demand outlook.

Mediatek: Muted seasonal growth in 3Q11; maintain Neutral

Our supply chain checks indicate healthy demand for 6252 (low-cost SOC) and

6236 (EDGE smart feature phone), while 6253 is being potentially phased out.

We expect Mediatek’s rev to increase 14% qoq in 3Q11 due to seasonality and

a lacklustre 2Q. Mediatek has recently cut 6252/6253 prices, but its overall ASP,

margin should remain stable due to increasing share of 6236 in the mix.

OUR ASIA-PAC SEMI COVERAGE

Note: *denotes stock is on our regional Conviction List.

Stock prices are as of the market close of July 14, 2011.

For important disclosures, please go to

http://www.gs.com/research/hedge.html.

Source: Datastream, Gao Hua Securities Research

estimates.

UPCOMING EVENTS

Source: Company data

Donald Lu, Ph.D +86(10)6627-3123 [email protected] Beijing Gao Hua Securities Company Limited Goldman Sachs does and seeks to do business with

companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC see the end of the text. For other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Lingling Hu +86(10)6627-3520 [email protected] Beijing Gao Hua Securities Company LimitedEvan Xu +86(10)6627-3176 [email protected] Beijing Gao Hua Securities Company Limited

The Goldman Sachs Group, Inc. Global Investment Research

Stock & Ticker PriceUpside/downside

potential

TSMC (2330.TW) Buy* NT$90 NT$70.7 27.3%TSMC ADS (TSM) Buy* US$15 US$12.2 23.0%UMC (2303.TW) Neutral NT$14.9 NT$13.8 8.0%UMC ADS (UMC) Sell US$2.6 US$2.4 8.3%Mediatek (2454.TW) Neutral NT$290 NT$258 12.4%MStar (3697.TW) Buy NT$250 NT$157 59.2%

Rating 12m TP

CY2Q11 result reporting scheduleCompany Name Ticker DateTSMC 2330.TW Thursday, July 28UMC 2303.TW Wednesday, August 3Mediatek 2454.TW Wednesday, July 27MStar 3697.TW Early August

July 19, 2011 Asia Pacific: Technology: Semiconductors

Goldman Sachs Global Investment Research 2

TSMC (2330.TW, Buy, on Conviction List)

TSMC reported in-line 2Q11 sales of NT$110.5 bn (+4.9% qoq, +5.3% yoy), nearly

reaching the high end of its guidance of NT$109-$111 bn. We expect TSMC to meet its

margin guidance in 2Q11, as well.

We estimate TSMC’s rev to decline 6.5% qoq in 3Q11 due to recent order cut across

nearly all applications based on our industry checks. Therefore, we now forecast

TSMC’s utilization rate to decline from 100% in 1Q11 to 98%/87% in 2Q11/3Q11,

respectively. We attribute the 3Q weakness to inventory clearing after the restocking post

the Japan earthquake, softening demand especially in Europe, and concerns over

deteriorating economic growth leading to minimal inventory. In 3Q11, we expect foundry rev

correction of 10% qoq vs. packaging (up 5% qoq), Mediatek and MStar (up 10%+ qoq), and

most PC OEM’s current PC orders (up 15%-20% qoq). We believe this inventory correction

is a typical pattern in the semiconductor supply chain.

We still expect the correction to end mostly in 3Q11 and foundry wafer shipment to

increase qoq in 4Q11 despite a weaker-than-expected 3Q11 for five reasons: (1) Most

Chinese handset makers have cleared their excess inventory in 2Q11 so that their demand

should increase almost seasonally in 3Q and 4Q11; (2) Nokia’s inventory correction should

complete mostly in 3Q11 based on our supply chain checks and Nokia demand should

normalize in 4Q11; (3) potential iPhone 5 introduction may stimulate iPhone replacement

demand; (4) Our Asia-Pacific tech hardware team has recently indicated that PC ODM

shipment is above expectations in 2Q11 and most PC OEMs (except Acer) expect 15%-20%

qoq growth in PC orders in 3Q11; and (5) wafer inventory clearing seems decisive in 3Q11

on the aforementioned pattern of bifurcation of 3Q growth between upstream and

downstream companies.

We expect TSMC capex to decrease from US$7.8 bn/US$6.5 bn to US$6.9 bn/US$6

bn in 2011E/2012E, respectively given the inventory correction, alleviating some

market concerns of foundry excess capacity. We note that GlobalFoundries (GF) has

recently had a senior management restructuring partially due to weak execution in R&D, 32

nm yield, and 28 nm qualification. In addition, SMIC announced on July 18 that its COO has

been promoted as SMIC’s chairman, Executive Director and acting CEO with effect from

July 15. In our view, these recent management issues at GF and SMIC may result in

reducing the effectiveness of capex, potentially alleviating concerns over excess supply in

the near term. Furthermore, our new capex assumptions indicate TSMC’s depreciation

increasing 30% in 2011E (which could be a cause for market concern) would decline to

5.5% in 2012E.

We view 28nm dominance, mobile computing for smartphone and tablet, and ARM-based

CPU for PC as TSMC’s major growth drivers in 2012E-2013E. We think TSMC’s 28nm

capacity is on track to reach 10K WPM by end of 2011 for the next wave of mobile

computing and arrival of ARM-CPU. In our view, GF or Samsung not having any significant

foundry design-wins at 28nm may be partially due to their choice of gate-first technology.

We expect 28nm to be TSMC’s fastest ramping node and believe that 28nm should

generate healthier returns than 40nm node.

Historically, we note that TSMC’s stock troughed at the beginning of each inventory

correction and outperformed when its utilization was low (since late April, TSMC +2% (incl.

cash div of NT$3 per share) vs. TAIEX -6%). The stock outperformed TAIEX from

September 2008 to March 2009 when utilization rate had troughed (see Exhibit 2). In our

view, TSMC’s upcoming 3Q guidance should help remove the uncertainty over the demand

outlook.

We revised our 2011E-2013E EPS by -6.3% to +1.8% to reflect inventory correction.

Consequently, we lower our 12-month P/E-based TP for TSMC/ADS by 1% to NT$90/US$15.

Key risks include USD depreciation.



Exhibit 1: We revise down our EPS for 3Q11E by 14.6% due to worse-than-expected

inventory correction TSMC estimates revisions

Source: Goldman Sachs Research estimates.

Exhibit 2: We note that TSMC stock has generally troughed at the beginning of the first

quarter of declining utilization TSMC stock price vs. utilization rate

Source: Datastream, company data, Goldman Sachs Research estimates.

Exhibit 3: We also note that TSMC’s stock outperformed when its utilization was low and

underperformed when it reached 100% TSMC relative performance vs. utilization rate

Source: Datastream, company data, Goldman Sachs Research estimates.

TSMCNew Old Diff. New Old Diff. New Old Diff. New Old Diff.

Revenue (NT$ mn) 103,266 112,794 -8.4% 430,781 449,011 -4.1% 499,513 529,289 -5.6% 560,010 573,321 -2.3%Gross margin (%) 43.0% 45.0% -197bps 45.9% 46.6% -67bps 47.4% 46.4% 99bps 45.6% 43.7% 188bpsOperating margin (%) 30.2% 33.3% -305bps 33.8% 35.0% -116bps 35.7% 35.4% 33bps 34.1% 32.5% 161bpsNet margin (%) 28.1% 30.1% -204bps 31.0% 31.7% -74bps 31.8% 31.4% 34bps 30.1% 28.9% 121bpsEPS (NT$)-local $1.12 1.31 -14.6% 5.15 5.49 -6.3% 6.12 6.42 -4.6% $6.50 6.38 1.8%

2013E2011E 2012E3Q2011E

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UMC (2303.TW, Neutral)

UMC reported 2Q11 parent sales of NT$28.15 bn (+0.1% qoq, -5.4% yoy), slightly above GS

forecast of NT$27.67 bn (-1.6% qoq, -7% yoy) and met company’s guidance of a flattish

quarter during the 1Q11 earnings release. We expect UMC’s 2Q GPM to be largely in line

with guidance at low-mid 20% and utilization rate at around 85% with 8” slightly higher

than 12”.

UMC is holding a conservative view about the 3Q11 outlook and has indicated that growth

in 3Q is not likely to match the seasonal level due to macro slowdown concerns. The

company noted that overall demand has not been strong since 2Q—relatively stable for

STB, Digital TV, and handset components, but ODD is showing slowdown during the past

few weeks. Communication (Baseband, Broadband, wireless infrastructure) demand is

weak as well. We estimate UMC’s 3Q revenue to decline 12% qoq, partially due to its large

exposure to Nokia.

The company indicated that ASP for 65nm and above has been under pressure as the

customers have more bargain power, while ASP of 40nm is relatively stable. So far, UMC

has 45 tape-outs in 40nm, 22 in production and 16 customers. The company maintains its

guidance that 40nm would account for 10% of total revenue in 2H11. Besides, UMC expects

pilot production for one client in 28nm in 3Q11.

We estimate that UMC would recognize higher non-operating income in 3Q due to the

dividend income from its non-core holdings in Farady, SiS, and Novatek, etc. We are also

reducing our capex estimates from US$1.8 bn/US$1.2 bn to US$1.5 bn/US$800 mn at UMC

in 2011E and 2012E, respectively given the inventory correction.

UMC has higher leverage than TSMC and has generally lost market share to TSMC when

the industry saw a correction in inventory. We expect UMC’s stock to be lacklustre as the

demand outlook remains uncertain and would await their 3Q guidance in late July/early

August. In near term, we think the stock may see some weakness during the earnings

season.

We lower our 2011E-2013E EPS by 2%-27% to reflect inventory correction and market share

loss. Consequently, we lower our 12-month P/B-based TP by 1% to NT$14.9. Risks: Upside -

strong IDM outsourcing; downside – market share loss in 40nm and 28nm.

Exhibit 4: We cut our estimates to reflect the demand and ASP pressures UMC estimates revisions


Mediatek (2454.TW, Neutral)

Mediatek released June quarter sales of NT$20.96 bn (+5.5% qoq, -30% yoy), in line with

our estimate of NT$20.8 bn (+4.7% qoq, -30.6% yoy), at the low end of its guidance of

NT$20.9bn-22.3bn.

Our supply chain checks indicate that demand for 6252 (low cost SOC) and 6236

(EDGE smart feature phone solution) has been healthy, while 6253 is being

UMC

New Old Diff. New Old Diff. New Old Diff. New Old Diff.

Revenue (NT$ mn) 24,688 28,675 -13.9% 107,789 115,635 -6.8% 119,687 131,572 -9.0% 128,310 136,316 -5.9%

Gross margin (%) 14.4% 22.3% -798bps 20.9% 24.6% -371bps 21.7% 23.8% -207bps 21.7% 21.7% 0bps

Net margin (%) 8.6% 12.9% -430bps 10.4% 13.3% -293bps 10.7% 12.5% -179bps 10.6% 10.2% 44bps

EPS (NT$)-local 0.17 0.30 -42.6% 0.90 1.23 -27.3% 1.03 1.33 -22.1% 1.10 1.12 -2.0%

Wafer Shipment (K unit 1,004 1,131 -11.2% 4,339 4,582 -5.3% 4,812 5,239 -8.1% 5,319 5,609 -5.2%

Utilization rate 74.7% 84.2% -946bps 82.4% 86.9% -455bps 86.8% 93.4% -654bps 91.9% 95.1% -324bps

2011E 2012E 2013E3Q2011E



potentially phased out. We believe demand should improve significantly qoq in 3Q11 due

to seasonal demand and a low base in 2Q11 when the industry had liquidated inventory

and went through restructuring. Mediatek also recently cut prices on 6252 and 6253 to

compete with Spreadtrum and MStar. But, we expect its overall handset ASP and margins

to remain stable due to increasing higher-ASP 6235/6236 in the product mix. Mediatek

indicated that the mix of 6235/6236 should increase from 15% in 1Q11 to 20% in 2Q11. We

forecast Mediatek 3Q rev to increase 14% qoq in 3Q11.

Mediatek sampled the second smartphone platform (HSUPA, 3.75G, 650MHz processor)

with several clients in the second quarter and indicated that the customers may launch

products in the near term at the earliest. This second platform is based on Android 2.3 OS.

The company noted that it has shipped less than 2 mn smartphone so far in 2011, but

maintained its full year target of 10 mn smartphones, implying a back-end loaded year.

Mediatek also expects to ship 10mn WCDMA feature phones and 12mn TD chips.

Besides, the company is positive on the TV SOC market and expects it to be the highest

growth segment this year with a stable ASP outlook.

On July 13, Mediatek announced a new share buyback program of 8mn shares (0.73% of its

outstanding shares) at the price range of NT$247-371 within two months till Sep 13.

Mediatek shares have contracted significantly post its cash div ex-date. We believe that its

3Q guidance and share buyback should help stabilize the share price near-term. However,

the growth outlook of its 3G smartphone remains challenging due to Qualcomm’s

intensifying competition. Unless its smart feature phone shipment could reach 30%-40% of

product mix in the next 12 months, trading at 19X NTM consensus P/E, Mediatek’s

valuation appear to lackluster (sector at 13.5X 2011E P/E), in our view. We maintain our

Neutral rating.

We lower our 2011E-2013E EPS by 2%-7% to reflect increasing competition. Consequently,

we lower our 12-month P/E-based TP by 5% to NT$290. Key Risks: upside – fast

smartphone adoption in emerging countries; downside – intensifying 2G competition.

Exhibit 5: We lower our estimates due to weak demand in low-end feature phones and

ASP pressure due to competition Mediatek estimates revisions


MStar (3697.TW, Buy)

MStar’s 2Q11 sales stood at NT$8.35 bn (+1.8% qoq, +8.9% yoy), in line with our estimate

of NT$8.3bn (+1% qoq, +8% yoy), reaching the mid range of its revenue guidance of

NT$8.07bn-8.55bn.

MStar indicated that its orders have been within expectations and stable in the past two

weeks. The company indicated that 3Q is normally a seasonally high growth quarter, and

expects to outperform the industry growth average with stable margins. We note that the

European TV market has been muted and expect MStar’s 3Q rev to increase 12% qoq vs up

23% qoq in 3Q10.

Mediatek estimates(GAAP) New Old Diff. New Old Diff. New Old Diff. New Old Diff.

Revenue (NT$ mn) 23,900 24,863 -3.9% 89,221 90,680 -1.6% 102,491 106,641 -3.9% 106,448 110,740 -3.9%Gross margin (%) 46.8% 47.1% -102bps 46.6% 47.1% -50bps 47.4% 48.9% -146bps 47.4% 48.9% -149bps

Operating margin (%) 19.3% 19.6% -340bps 17.8% 18.2% -45bps 20.7% 21.9% -124bps 21.3% 22.6% -127bpsNet margin (%) 19.3% 19.6% -321bps 18.1% 18.5% -42bps 19.8% 21.0% -113bps 20.3% 21.5% -114bps

EPS (NT$) 4.25 4.41 -3.8% 14.89 15.24 -2.3% 18.74 20.12 -6.9% 19.95 21.22 -6.0%

2011E 2012E 2013E3Q2011E



For the TV business, MStar indicated that its market share has increased among Japanese

brands, and remained stable at domestic Chinese TV brands and LG. Meanwhile, our

supply chain checks indicate that Novatek may have potentially secured Samsung’s (one of

MStar’s customers) TV orders, but this appears to have largely come at the expense of

Trident. MStar expects its overall TV market share to remain stable in 2011-2012.

Our channel checks indicate that MStar is making progress in the handset market.

Some of its major customers are ramping up volumes after testing its mid-range

solutions for several months. We forecast MStar to ship 12 mn chipsets in 3Q11.

MStar noted that handset shipment was up 30%-50% qoq in 2Q11, same as 1Q11, and

expects the momentum to continue throughout 2011. According to the company, handset

ICs contributed more than 5% of total revenue in 1H11 and is targeted to reach double digit

revenue share for this year. MStar sampled TD IC with clients in 2Q11 and expects mass

production in 4Q11 or early next year. The company also noted the expansion of its

handset business in the emerging markets such as in India, where the number of

customers increased significantly. Currently more than 50% of its handset shipment is for

markets outside of China. MStar aims to sample its smartphone IC in 4Q11. But we believe

that MStar’s handset cost is not competitive with that of Mediatek and so a fast handset

volume ramp up could potentially have negative impact on margins. We lower our handset

shipment forecasts from 45mn/120mn to 44mn/88mn in 2011E and 2012E, respectively.

MStar announced another share buyback plan for 6mn shares till the end of July after it

bought back 4mn during the last round from Jan 24 to Mar 18. It has completed 3.86mn out

of the 6mn shares by June 24.

We note that 40% of its shares were locked up immediately after its IPO in Dec 2010, of

which 15% were unlocked 3 months post IPO in late March 2011 (among which 7%-8%

were MStar employee shares). Around 10% is held by management and locked for two

years. The rest 15% are held by institutional and other investors and would gradually

unlocked through 3 months to 2 years post IPO. Upon its initial listing, employee shares

accounted for about 50% of its total shares (10%-15% were locked up) and currently

employees hold about 40% of the stake (10% is locked up). The company noted that it has

not seen any significant shareholding changes yet.

Despite our earnings cut, we maintain Buy on MStar based on its high ROE and healthy

new product portfolio. We lower our 2011E-2013E EPS by 4%-13% to reflect slower-than-

expected ramp up in handset segment. Consequently, we lower our 12-month TP by 14%

to NT$250. Our TP is based on 14X NTM P/E, down from 16.5X as we estimate lower

earnings growth CAGR (19% vs. previously 24%) for 2011E-2013E. Key risks include slower

than expected volume ramp up in the handset market.

Exhibit 6: We cut our MStar estimates due to its slower than expected ramp up in

handsets segment MStar estimates revisions


MStar estimatesNew Old Diff. New Old Diff. New Old Diff. New Old Diff.

Revenue (NT$ mn) 9,332 9,561 -2.4% 35,976 38,150 -5.7% 42,550 48,017 -11.4% 46,501 54,899 -15.3%

Gross margin 41.7% 41.6% 0.1% 41.6% 41.6% 0.0% 41.8% 41.5% 0.3% 42.0% 41.7% 0.3%

Operating margin 19.8% 19.7% 0.1% 19.8% 19.9% -0.1% 21.4% 21.1% 0.2% 21.7% 21.5% 0.2%

Net margin 19.7% 18.8% 0.9% 19.7% 19.1% 0.5% 21.1% 20.2% 1.0% 21.4% 20.5% 0.9%

Diluted EPS (NT$) 3.81 3.73 2.3% 14.58 15.12 -3.5% 18.47 19.96 -7.4% 20.15 23.05 -12.6%

Diluted share account (mn) 483 483 0.0% 485 483 0.5% 487 485 0.3% 495 488 1.4%

2011E 2012E 2013E3Q2011E



Exhibit 7: Comp table of our semi coverage

*This stock is on our regional Conviction list Note: For important disclosures, please go to http://www.gs.com/research/hedge.html.

Source: Datastream, company data, I/B/E/S, Goldman Sachs Research estimates.

Other disclosure

Research written by Donald Lu on companies listed in Taiwan is written by him in his

capacity as consultant to Goldman Sachs (Asia) L.L.C.. Any other research is written in his

capacity as employee of Beijing Gao Hua Securities Company Limited.

12 month MarketStock Stock 7/14/11 Target cap P/B (X)

Company name ticker rating price price (US$bn) 2010 2011E 2012E 2010 2011E 2012E 2010 2011E 2012E 2011E 2010 2011E 2012E 2011ETSMC (NT$) 2330.TW Buy* 70.7 90.0 63.57 6.24 5.15 6.12 6.24 6.13 6.62 11.3 13.7 11.5 6.5 30% 22% 24% 3.0TSM (US$) TSM Buy* 12.2 15.0 62.97 0.99 0.88 1.02 1.08 1.06 1.15 12.3 13.8 11.9 6.4 30% 22% 24% 3.0UMC (NT$) 2303.TW Neutral 13.8 14.9 6.20 1.91 0.90 1.03 1.68 1.48 1.66 7.2 15.3 13.3 3.5 11% 5% 6% 0.9UMC (US$) UMC Sell 2.4 2.6 6.23 0.31 0.15 0.17 0.29 0.26 0.29 7.8 15.5 13.9 3.5 11% 5% 6% 0.9SMIC (US$) SMI NC 3.9 N.A. 2.15 -0.17 0.17 0.24 N.M. 23.1 16.3 4.4 -4% 1% 2% 0.9SMIC (HK$) 0981.HK NC 0.6 N.A. 2.22 -0.03 0.03 0.04 N.M. 23.8 16.8 4.5 -4% 1% 2% 0.9Average 9.3 17.4 13.7 4.8 12% 10% 11% 1.6Median 9.3 15.3 13.3 4.4 11% 5% 6% 0.9

GH/ConsensusROE (%)EV/EBITDA (X)EPS estimates EPS estimates P/E (X)

GH/ConsensusGH calendar Consensus calendar GH/Consensus

GS/GH Fabless Comp Sheet12 month Market GS/GH/Consensus

Stock Stock 7/14/11 Target cap P/B (X)Company name ticker rating price price (US$bn) 2010 2011E 2012E 2010 2011E 2012E 2010 2011E 2012E 2011E 2010 2011E 2012E 2011EMediaTek (NT$) 2454.TW Neutral 258.0 290.0 9.8 28.44 14.89 18.74 29.84 17.35 21.24 9.1 17.3 13.8 11.2 28% 15% 18% 2.7 MStar (NT$) 3697.TW Buy 157.0 250.0 2.6 13.47 14.58 18.47 14.63 16.54 19.87 11.7 10.8 8.5 6.3 27% 22% 26% 2.3 RealTek (NT$) 2379.TW NC 49.7 N.A. 0.8 N.A. N.A. N.A. 4.03 4.65 6.18 12.3 10.7 8.0 4.2 11% 13% 16% 1.3 Broadcom (US$) BRCM Buy 32.9 48.0 15.9 2.24 2.10 2.50 2.71 2.93 3.12 14.7 15.7 13.2 10.7 25% 19% 20% 2.4 Marvell (US$) MRVL Neutral 14.7 18.0 9.0 0.78 1.46 1.40 1.65 1.71 1.82 18.7 10.1 10.5 6.7 12% 20% 16% 1.6 Qualcomm(US$) QCOM Buy* 54.9 68.0 91.7 2.03 2.67 3.18 2.77 3.05 3.10 27.1 20.6 17.3 14.0 16% 19% 19% 3.5 SPRD (US$) SPRD NC 15.7 N.A. 0.8 N.A. N.A. N.A. 1.23 1.63 1.63 12.8 9.6 9.6 8.6 42% 36% 36% 4.4 Average 15.2 13.5 11.6 8.8 23% 21% 22% 2.6 STDEV 6.0 4.3 3.3 3.4 11% 7% 7% 1.1 Median 12.8 10.8 10.5 8.6 25% 19% 19% 2.4

GS/GH/Consensus GS/GH/ConsensusGS/GH CY/FYEPS estimates

Consensus CY/FYEPS estimates

GS/GH/ConsensusP/E (X) ROE (%)EV/EBITDA (X)



Reg AC

I, Donald Lu, Ph.D, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or

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Company-specific regulatory disclosures



Distribution of ratings/investment banking relationships

Goldman Sachs Investment Research global coverage universe

Rating Distribution Investment Banking Relationships

Buy Hold Sell Buy Hold Sell

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Price target and rating history chart(s)





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