JPM | APAC Technology - SEC / TSMC / MTK: APAC Technology - Specialist Sales Commentary Hardware - Semiconductors

Research evidence excerpt

JPM | APAC Technology - SEC / TSMC / MTK: APAC Technology - Specialist Sales Commentary Hardware - Semiconductors

Aug 5, only cash recognized as initial margin from Aug 19, new listings of single-stock levered ETFs

temporarily halted). Swap capacity limits have been tightening for a while and L/S ratios in the JPM Prime book have

declined from >5.5x -> >4x. Margin balances have declined somewhat from a high of >$25bn to now $21bn now. most of the

margin calls have been in KOSDAQ. At $21bn, is just 0.5% of equity market cap (US 1.9%, China A-shares 2.8%). Korea

retail have ample equity gains, cash balances, higher incomes and overseas assets to absorb any margin calls. There has been

>$110bn of foreign outflows YTD – breaking any record. The two memory names hit mandate limits which forced investors

to sell the rallies. This selling pressure has eased tactically, as the two heavyweights are now only 7.5% and 5.7% weights in

MSCI EM.

Sector Key Newsflow

• Google Plans New Chip to Boost AI Model Efficiency: Information (Bloomberg)

• Japan to make new push to set global standards as it trails in AI, chips (ikkei)

• Taiwan Semi: MOEA says Taiwan supply chain resilient amid Gelsinger warning (CNA)

• Hon Hai Wins First SpaceX AI Server Order, Eyes Space AI: EDN (Bloomberg)

• TSMC’s $265 Billion US Spend Driven by Demand, Rivals, CFO Says (Bloomberg)

• TSMC Plans to Pay Dividends in USD to Foreign Investors in 2027 (Bloomberg)

• Micron's 10-year deal with GlobalWafers signals tighter 12-inch supply (Digitimes)

• SK Group chief warns AI chip shortage to worsen in 2027 (Maeil Biz News)

• Samsung SDS launches Korea's first deep learning service, powered by homegrown chip (Korea Times)

• Samsung to cut over 800 US jobs amid market headwinds (Digitimes)