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U.S. EQUITIES RESEARCH

SMARTPHONE SPOTLIGHT

Q1’2012 EARNINGS TAKEAWAYS

All 35 US companies in our Smartphone value chain have reported CQ1’2012 earnings. Although longer-term

dynamics for the smartphone industry presented in our initial report (Smartphone Spotlight: Leveraging the

Value Chain) remain intact, there were some new trends that emerged from the recent earnings season. In this

note we update our view on the 4 US companies we discussed in our prior note.

US Companies highlighted:

Qualcomm Inc (QCOM, $58.14, Not Rated): CQ2’2012 MSM shipments and sales guidance were disappointing

due to 28nm supply constraints. Weakening momentum at HTC and continued supply constraints for 28nm

chips, potentially through the December quarter, in our view will continue to be headwinds.

Broadcom Corp (BRCM, $32.29, Not Rated): Although no new design wins were announced, company suggested

3G momentum is increasing in 2012, which may not be reflected in the current stock price. On balance we are

optimistic based on new product cycles in 3G baseband, 5G Wifi and NFC, despite BRCM’s lagging baseband

technology roadmap and a hyper-competitive China smartphone market.

RF Micro Devices (RFMD, $3.59, Not Rated): Consistent with earlier read-throughs, strengthening demand from

Chinese manufacturers removed key headwind and led to guidance of ~8% sequential quarterly sales growth in

CQ2’2012. Increasing complexity of LTE and greater exposure to Samsung are incremental positives that could

offset continued exposure to Nokia and 2G.

Skyworks Solutions Inc (SWKS, $26.11, Not Rated): Diversification across products and customers allays

concerns regarding a “product hole” that we highlighted in our earlier report, leaving the company well

positioned to benefit from longer-term industry growth trends. On balance we no longer have a conviction view

unless additional value chain read-throughs emerge.

All prices are as of close of business in May 23, 2012. The equity ratings for the Asian companies contained in this report were issued by BNP Paribas Securities (Asia) Ltd., a non-US affiliate of BNP Paribas Securities Corp. Such ratings reflect the global ratings adopted by the BNP Paribas group as described under “Stock Ratings” in the Disclosures section beginning on page 34. The analysts responsible for such ratings are not registered / qualified pursuant to NYSE and/or FINRA regulations.

Nitin Kumar [email protected] +1 212 471 7963

BNP Paribas research is available on Thomson One , Bloomberg, The Markets.com and Factset.

For analyst certification and other important disclosures, refer to the Disclosures section beginning on page 34.

24 MAY 2012

http://www.bnppresearch.com/?E=bjffgkbccff


Smartphone Spotlight Nitin Kumar

2 BNP PARIBAS 24 MAY 2012

CONTENTS

Value Chain Indicator Framework: A Look Back __________________________________________________ 3

Overall framework ______________________________________________________________________________________________ 3

Qualcomm: Headwinds may persist ________________________________________________________________________________ 4

Broadcom Inc: Early stages of new product cycles ____________________________________________________________________ 7

RF Micro Devices: Catalysts being discounted_________________________________________________________________________ 9

Skyworks Solutions: No conviction read-throughs ___________________________________________________________________ 11

Other Key Takeaways from Earnings ___________________________________________________________ 13

Overall competitive landscape remains the same ____________________________________________________________________ 13

28nm constraints: A bottleneck and an opportunity __________________________________________________________________ 14

Appendices _________________________________________________________________________________ 17

Appendix 1: Value Chain Indicator Framework ______________________________________________________________________ 17

Appendix 2: Smartphone Value Chain ______________________________________________________________________________ 19

Appendix 3: Market Returns by Segment ___________________________________________________________________________ 20

Appendix 4: Segment Comparisons ________________________________________________________________________________ 22

Appendix 5: Trends by Key Smartphone Vendor Value Chains __________________________________________________________ 23

Appendix 6: Price Performance and Analyst Estimates by Company _____________________________________________________ 25

Appendix 7: Consensus Valuation Multiples by Company ______________________________________________________________ 27

Appendix 8: Consensus Sales Trends by Company ____________________________________________________________________ 29

Appendix 9: Gross Margin and Days of Inventory Trends by Company ____________________________________________________ 31

Appendix 10: List of Asian Companies mentioned (BNPP Asia Tech coverage) ______________________________________________ 33



Value Chain Indicator Framework: A Look Back

Overall framework

In our introductory Smartphone Spotlight report (Smartphone Spotlight: Leveraging the Value Chain), we

introduced our Value Chain Indicator framework -- a quantitative framework for identifying potential

market outliers and anomalies within the smartphone value chain. This system acts as a screening

mechanism that, when combined with read-through’s from the BNPP Asia Tech1 team and our

understanding of the industry drivers, can identify investment themes and ideas. An overview of the

framework is included in Appendix 1.

In Exhibit 1 below, we show the model results based on prices and consensus fundamental estimates as of

April 12, 2012 – the date we had used for our prior publication.

EXHIBIT 1: Value Chain Indicator Framework – April 12, 2012

Sources: BNP Paribas, Bloomberg

Overall the 35 US companies in the smartphone value chain have declined by 13.7% since our last note,

underperforming both the Philadelphia Semiconductor Index (SOX, -12.2%) and the S&P 500 Index (SPX, -

5.0%). The sole exception to the general declining trend of the smartphone value chain was Cirrus Logic

(CRUS, 27.74, Not Rated), which has gained ~16% since April 12.

Key headwinds such as supply constraints at 28nm, a longer-than-expected product transition at Apple

(AAPL, 570.56, Not Rated) and struggles at key vendors contributed to underperformance by smartphone

value chain companies. .

Exhibit 1 also shows the 8 outliers identified by our Value Chain Indicator framework on April 12, of which

we had highlighted 4 in our April report. In this note we discuss key takeaways from the recent earnings

season for these 4 companies.

1 Our affiliate, BNP Paribas Securities (Asia) Ltd., provides extensive coverage of the TMT sector through a team of 22 publishing analysts covering ~100 companies. In this report we refer to this team as BNPP Asia Tech.

QCOM

CY

FLEX

RFMD

SWKS

AVGOMOLX

CRUS

BRCM MXIM

-3

-2

-1

0

1

2

3

-3 -2 -1 0 1 2 3

Actual Price Z-score

Estimated Price Z-score




Qualcomm: Headwinds may persist

Summary of our pre-earnings view

We highlighted longer term challenges for Qualcomm Inc (QCOM, $58.14, Not Rated) in both high-end and

low-end devices in 2H 2012. For high-end devices, we focused on the short window of opportunity for key

customers like HTC (2498 TT, TWD 422.50, REDUCE) and LG (066570 KS, KRW 65,200, REDUCE) before the

launch of Samsung (005930 KS, KRW 1,221,000, BUY) and AAPL flagship devices. For low-end devices we

highlighted increased competition from Mediatek (2454 TT, TWD 253, BUY). We suggested that investors

monitor FQ3’2012 earnings guidance on April 18 for any early signs of momentum loss.

CQ1’2012 earnings summary

Despite delivering strong quarterly results for FQ2’2012 (March quarter), QCOM disappointed investors

with its June quarter guidance. FQ3’2012 sales guidance was $4.45bn to $4.85bn, ~3% below consensus

estimates prior to the announcement. The company guided to MSM chip shipments of 144-152mm vs.

FQ2’12 shipments of 152mm, blaming capacity constraints at TSMC (2330 TT, TWD 79.1, BUY) for the

reduced guidance. Despite some positives in the earnings release – particularly the higher guidance for

3G/4G device shipments and ASPs which drives revenues for the company’s QTL segment – the stock has

declined ~13% since the earnings release on April 18.

Thoughts post-earnings: Headwinds may persist

Despite its recent weakness, our view is that QCOM may continue to see headwinds for the rest of CY2012.

Several observations support our view:

1. Weakening momentum at HTC

In addition to the challenges described in our earlier note, we expect weakening momentum at HTC to be

a constraint for QCOM in CQ2’2012. As Laura CHEN highlights in her recent note2, on April 24 HTC guided

its 2Q 2012 sales to be TWD 105bn (up 55% qoq, down 16% yoy). April monthly sales (reported on May 9)

were TWD 31bn, ~20% lower yoy and weaker than the guided pace.

At their recent analyst day, HTC also said that they expect more upside in Asia, particularly China and

Japan, while admitting that growth in the US market will be more challenging. The company suggested

that the share of US sales would decline from ~50% to ~30%. Subsequently, there have been delays in the

US availability of the HTC One X and HTC EVO 4G LTE due to US customs review of shipments following an

ITC exclusion order in its patent dispute with Apple. The US is one of the primary markets for LTE devices,

and while HTC selected the Nvidia Tegra for its flagship One Series in other regions, it relies on QCOM’s

Snapdragon S4 for the US bound LTE version (One XL).

HTC represents approximately 13% of QCOM’s total revenue, and weakening momentum (especially in the

US) at the device maker may continue to pose challenges for QCOM through 2012.

2. Samsung diversifying LTE basebands

Samsung is another key customer for QCOM, representing approximately 13% of revenues. As we

highlighted in our April note, Samsung adopted its own Exynos AP for the new SIII replacing QCOM’s

combined chip for the LTE version of SII. Moreover, Peter YU from BNPP Asia Tech has suggests3 that

given the diversified design of Galaxy smartphones, Samsung may not rely entirely on Qualcomm’s LTE

2 Laura CHEN, HTC Corp – Challenging outlook continues, April 25, 2012. 3 Peter YU, SAMSUNG ELECTRONICS - Galaxial momentum, May 7, 2012.

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basebands for all SIII devices. For some CDMA LTE versions targeted for the US (Verizon) and Korea

(LGU+), Samsung may use its own LTE baseband with a different 2G/3G baseband (e.g., Viacom).

3. Continuing 28nm supply constraints

At its earnings conference on April 18, QCOM indicated that the 28nm supply constraint will affect the

MSM8960 (2/3/4G baseband + AP combo) and “other 28nm products”. As Peter YU from BNPP Asia Tech

highlights4, limited supply of the MSM8260, which is the 3G version of Snapdragon S4, will impact tier-2

smartphone makers (ZTE, Huawei, LG etc). These vendors may be tempted to consider alternatives from

competitors like Mediatek, Nvidia5 and BRCM, albeit some are at higher nodes. This may especially be the

case if QCOM is forced to allocate 28nm supply to Apple and Samsung, who are expected to use the

MDM9615 LTE baseband (another 28nm product) for their flagship devices.

4. Competition from MediaTek is rising

While QCOM has a better product roadmap and leading 3G/4G technology, the BNPP Asia Tech team sees

opportunity for Mediatek in the 1GHz mainstream smartphone market6. Shipments of Mediatek’s MT6575

(single core, Cortex A9, 1GHz) chip start in CQ2’2012. The MT6577 (dual core, Cortex A9, 1.2 GHz) chip is

expected to be launched in CQ3’2012. Both chips are made at the 40nm node, and are reportedly not

impacted by 28nm capacity constraints. We reiterate our view that increasing adoption of Mediatek chips

in mainstream smartphones could slow-down QCOM’s momentum in this market.

Risks to our view

Balancing our view of longer term headwinds, several positive scenarios could unfold, which we feel could

pose some upside risk to our view.

1. Retaining AP socket on US 4G Samsung Galaxy SIII

Although, Samsung elected to use the Exynos 4412 AP for its Galaxy SIII7, early industry reports suggest

that they might retain the QCOM baseband + AP solution (MSM8960) for a US 4G version. Many (including

us) expected Samsung to use the Exynos series AP in the US 4G version as well. Although, detailed specs

for an US version of the Galaxy SIII are not available as of this publication, winning this socket would

provide a boost to QCOM shipments.

2. Continued 3G/4G momentum

QCOM is also strongly positioned to take advantage of the anticipated launch of several high end 4G/LTE

devices this year with its integrated baseband. QCOM has reiterated that it expects LTE devices to

account for approximately a third of chip shipments by the end of 2012. Given higher margins associated

with LTE devices, strong adoption of LTE devices could be a tailwind for the company going into 2013.

3. Higher 3G/4G shipments and ASPs

QCOM benefits from the overall growth in global 3G/4G device shipments through its licensing business

(QTL). The company raised CY 2012 guidance for global shipments to 915 million units (from 910 million

4 Peter YU, SAMSUNG ELECTRONICS - Galaxial momentum, May 7, 2012. 5 NVDA, $12.44, Not Rated 6 Laura CHEN, MEDIATEK - Lift smartphone shipment target, April 28, 2012. 7 Peter YU, SAMSUNG ELECTRONICS - Galaxial momentum, May 7, 2012.


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units), while estimating a slight increase in ASPs ($212 midpoint vs. $210 midpoint). Further upside in

these estimates could result in revenue upside.

4. Multiples have declined due to price weakness

As shown in Exhibit 2 below, based on recent price weakness, QCOM valuation multiples (1yr fwd P/E ratio

and EV/EBITDA) have fallen to the lower end of their range since January 2010. On April 12, the multiples

were above their historical average.

EXHIBIT 2: QCOM Valuation Multiples

Sources: Bloomberg, Bloomberg consensus estimates

In Exhibit 3 we split the change in these valuation multiples since April 12 between the impact of price

moves and the impact of changes in consensus estimates. Clearly, changes in price have driven lower

multiples, which could suggest an under-priced stock.

EXHIBIT 3: Change in Valuation Multiples

Sources: Bloomberg, Bloomberg consensus estimates

1y Fwd P/E Ratio: 2010 to current 1y Fwd EV to EBITDA Ratio: 2010 to current

10.0 x

15.0 x

20.0 x

25.0 x

Jan-10

Mar-10

May-10

Jul-10

Sep-10

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

6.0 x

10.0 x

14.0 x

Jan-10

Mar-10

May-10

Jul-10

Sep-10

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

May-12

Change in PE Ratio Change in EV / EBITDA

0.0

5.0

10.0

15.0

20.0

12-Apr Change in price

Change in estimates

23-May0.0

5.0

10.0

15.0

12-Apr Change in price

Change in estimates

23-May



Broadcom Inc: Early stages of new product cycles


Despite a lagging technology roadmap for baseband/AP chips and growing competition in connectivity

chips (where BRCM is the market leader) we were cautiously optimistic on BRCM given recent momentum

with low-cost 3G smartphones. We expected that indications of design wins in entry level 3G

smartphones could provide further positive momentum not reflected in the stock price.


BRCM reported FQ1’2012 sales (March quarter) of $1.827 million and EPS of $0.65/sh, compared to

estimates of $1,777.75 million and $0.55/sh, respectively. Excluding the NetLogic acquisition, FQ1 revenue

would have been $1.79 billion, near the high end of the company guidance ($1.70 - 1.80 billion). Guidance

and actual results by segment are summarized in Exhibit 4 below.

EXHIBIT 4: BRCM: Results by Segment FQ1’2012

Sources: Company, (1) BNP Paribas Calculation

In terms of FQ2’2012, BRCM expects firm level revenues to be between $1.90 and $2.00 billion, compared

to Bloomberg consensus estimate of $1.93 billion prior to earnings. Within the segments, the company

guided to sequential growth in the Home and Infrastructure segments and flat revenues for the Hand

segment. BRCM has declined ~12% since announcing earnings on May 1.

Thoughts post-earnings: Early stages of new product cycles

On balance we are optimistic based on new product cycles in 3G baseband, 5G Wifi and NFC, despite

BRCM’s lagging baseband technology roadmap and a hyper-competitive China smartphone market.

Although no new design wins were announced, the company suggested 3G momentum is increasing in

2012, which may not be reflected in the current stock price.

1. Greater optimism on 3G momentum

Although BRCM did not announce any new design wins at the earnings call, the company has affirmed

that momentum in 3G basebands and WiFi combos is improving. 3G volume and revenues exceeded 2G in

Q1, ahead of the company’s expectations. Also, the company highlighted that declines in its 2G business

would cease to be a headwind for the segment after Q2 2012. Total revenue from 2G is expected to be in

the low tens of millions for CQ2’2012 vs. ~$800mm for the Hand segment.

Also, despite pushing out the ramp in 3G revenue from Nokia to 2013 (earlier the estimate was for late

2012) BRCM continues to see improving momentum for its 3G business and expects it to grow during

2012. In our opinion, this may be indicative of increased volumes and penetration with customers like

Samsung, ZTE and other Chinese indigenous manufacturers.

Segment Q4 2011 Q1 2012 % Change (1) Company Guidance Company Commentary

Broadband Communications

("Home")510 494 -3.1 Down from Q4 2011

Mobile & Wireless

("Hand")875 875 0.0 Down from Q4 2011

Upside driven by 3G baseband

and Wi-Fi combos

Infrastructure & Networking

("Infrastructure")383 406 6.0 Roughly Flat from Q4 2011

Includes $33mm from NetLogic

*-3% w/o NetLogic

Other 53 52 -1.9

----- Revenue ($mm) -----



2. Other new product cycles ramping up

Another key driver for BRCM is its first-mover advantage in the 5G WiFi space. The company expanded its

product offering in Q1 and will begin shipping 5G WiFi chips to Netgear (NTGR, 30.86, Not Rated) in Q2.

Some industry estimates suggest they are 1-2 quarters ahead of their competition in this space.

Continued adoption of this technology could be a longer term tailwind for BRCM that might be

underestimated by markets. Also, within the smartphone value chain, BRCM highlighted increased

demand for its NFC solutions as a potential growth driver.

3. Low exposure to 28nm

BRCM has been largely unaffected by 28nm supply constraints. Their current products are primarily at

the 65nm while some of the newer products are manufactured at the 40nm node. BRCM does not expect

28nm revenue until 2013 since they will use a later stage process. Given current supply constraints at

28nm, we feel the threat from QCOM (legacy Atheros) to BRCM’s lead in connectivity chips is also

diminished. Also, this opens a window of opportunity for BRCM with smaller vendors who might suffer if

QCOM allocates its capacity to Samsung and Apple.

Risks to our view

BRCM faces several challenges that could offset the upside from the catalyst discussed above. We have

highlighted these risks in our earlier note, and reiterate them here.

1. Delayed LTE Roadmap

BRCM does not expect LTE revenues until 2013. LTE has been a source of growth for many communication

IC companies (for instance QCOM expects LTE to be a third of shipments for CY 2012). BRCM is already

“late to the party” and further delays could pose downside risk.

2. Lagging baseband technology roadmap

We have been cautious of BRCM’s lagging baseband technology roadmap compared to competitors like

MediaTek and Qualcomm, particularly in application processors and basebands. Although its newest

offerings – the single core BCM21553 and the dual core BCM28150 – claim to reduce the bill of materials

for 3G phones by ~30-50%for lower-end phones8, BRCM has not gained critical mass with smartphone

vendors. Also, while QCOM, Samsung and Apple are moving to newer arcitechtures (ARM A15) and

processes (28nm), BRCM is still playing catch-up in this space. Any indications of weakening 3G

momentum could weigh heavily on the stock.

3. Hyper-competitive China Market

In the hyper competitive China 3G market, on one hand BRCM must overcome the cost-efficiency of

Mediatek, while on the other hand they must dislodge market incumbent and technology leader QCOM.

BRCM is trying to convert leadership in “other communications” to market share in baseband and AP. It

faces an uphill battle and we continue to monitor for any signs of missteps.

8 Weiyee IN, TMT In Brief: Wireless Chipset Fray, January 12, 2012.

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RF Micro Devices: Catalysts being discounted


Our view was that RFMD’s underperformance (down ~17%) compared to tech stocks in general (XLK ETF

up ~18%) and RF makers is particular (average increase of ~41%) during CQ1’2012 was driven by

expectations of weak 2G/3G demand for handsets in China. Read-throughs based on BNPP Asia Tech

reports suggested to us that the China slowdown could be abating, positioning RFMD to benefit from

longer term catalysts.


RFMD reported FQ4’2012 (March quarter) sales of $187.93 million compared to Bloomberg consensus

estimate of $185.19 million and company guidance of $185 million. EPS was -$0.02/sh versus consensus

of -$0.009/sh. The company highlighted “greater than seasonal declines amongst handset manufacturers

in China and at a European handset manufacturer” for the decline in FQ4’2012 sales. These results were

consistent with the guidance that the company had provided in January. Gross margins improved by 220

bps sequentially to 32.4% versus consensus estimates of 31.7%.

RFMD guided to FQ1’2013 (June quarter) sales of $202 million, a sequential increase of approximately 8%.

Non GAAP gross margin is expected to grow by another 100 to 200bps. Non GAAP EPS guidance is for

breakeven to $0.02/sh. RFMD stock has declined ~10% since earnings were released on April 24.

Thoughts post-earnings: Catalysts being discounted

Strengthening demand from Chinese manufacturers removed the key headwind and led to guidance of 8%

sequential quarterly sales growth in CQ2’2012. Increasing complexity of LTE and greater exposure to

Samsung are incremental positives that could offset continued exposure to Nokia and 2G.

1. China handset market back on growth track

During the recent earnings season, several smartphone value chain companies including RFMD

highlighted recovering momentum in the China handset market. We summarize some of these comments

in Exhibit 5 below. RFMD works with key baseband manufacturers – QCOM, MediaTek and Spreadtrum

(SPRD US, 15.30, Not Rated) across both W-CDMA and TD-SCDMA and estimates a ~30% market share

EXHIBIT 5: Comments on China handset recovery

Sources: Company earnings call transcripts

Ticker Company Date Comments

VSH US Vishay

Intertechnology

2-May-12 Asia is improving fast after a very slow start into the year. We saw significantly increased orders from almost all

segments. Naturally, for the region this upturn is heavily oriented towards consumer segments like smartphones,

laptops and pure consumer.

INVN US Invensense 3-May-12 In a large part, we saw this as a strong performance from our China handset and gaming customers.

Major handset vendors in China are showing better than expected entry to the high-end smartphone and mid-

range smartphone, with adopting Ice Cream Sandwich, adopting motion interface.

2454 TT MediaTek 27-Apr-12 Furthermore, we raised our 2012 full year smartphone shipment guidance to 75 million units from the 50 million

units guided previously.

[In response to a question]: ... our view is out of that 75 million units, overall speaking we are still talking about a

good 80% of that, our sales domestic in China, only 20% outside China.

RFMD US RF Micro Devices 24-Apr-12 Order visibility into China has improved and we are forecasting sequential growth in the June quarter.

The China market is transitioning now to 3G and this has the effect of tripling RFMD's dollar content opportunity

in that key market.



2. Opportunity from LTE complexity

Peter YU from BNPP Asia Tech recently highlighted the complexity faced by OEMs in developing a LTE

“world mode” device given LTE spectrum fragmentation9. As many as 38 different frequency combinations

may be used in LTE deployment by 2015. As Peter notes, while an integrated baseband solution

supporting all wireless protocols is available (QCOM MDM9615), there is still a need for multiple RF chips.

This could raise RF dollar content on LTE phones to $8-10, compared to $5-6 for current 3G phones.

Beyond the industry-wide opportunity with LTE phones, we feel RFMD may have a product set that will be

attractive to high-end device makers facing the LTE dilemma. RFMD recently introduced its PowerSmart

4G converged multimode, multi-band power platform capable of up to 12 bands of 4G LTE, 3G and 2G

(combined). Although RFMD’s chip is not the panacea that addresses the complexity faced by LTE device

makers, it helps address some of their power consumption and PCB footprint issues by using just two dies

compared to less power-efficient multi-die designs in competitor products.

3. Leverage to Samsung growth

As we highlighted in our earlier note, RFMD has significant (~14%) revenue exposure to Samsung, which is

their only >10% customer as of CQ1’2012. RFMD is broadly represented across Samsung’s portfolio of

devices including popular models like the Galaxy SI, SII, and Nexus. The company recently announced

further design wins on Samsung’s Galaxy SIII, Galaxy Note, Ace and Beam models. In our view, increased

leverage to the Samsung growth story is a favorable outcome.

4. Changing business mix

In addition to growing revenues with Samsung sequentially in CQ1, RFMD management suggested that

Nokia’s (NOK1V FH, EUR 2.124, Not Rated) share of revenues has declined “significantly” below 10%. Also,

while the company did not announce any specific design wins, they suggested that they expect to add one

or two more vendors to the >10% customer list through their integrated RF solutions. In our view, these

changes to the customer mix align RFMD closely with longer term dynamics in the smartphone industry.

Risks to our view

1. Continued exposure to Nokia and 2G

Although the share of Nokia and 2G is declining, RFMD’s continued exposure to both these sources of

revenue has been a concern for investors. Declines in both businesses could potentially offset gains from

catalysts discussed above.

2. Increased R&D expense

RFMD increased guidance for 2012 R&D based on targeted OEM projects and near term revenue

opportunities. In our view, if the company does not announce design wins based on this increased R&D,

the stock could face more downside risk.

3. Low gross margins

Finally, gross margins have been at sub-40 levels given approximately 50% utilization at RFMD’s foundry.

The company recently formed the Compound Semiconductor Group (CSG) with primary focus on the

foundry business. Failure to improve utilization and margins may lead to further value erosion.

9 Peter YU, Samsung Electronics – LTE fragmentation, May 21, 2012.

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Skyworks Solutions: No conviction read-throughs


Although we did not dispute the strength of the company’s diversified business model, our enthusiasm

was tempered by its revenue exposure to Nokia – both directly and through FoxConn International (“FIH”)

(2038 HK, HKD 3.44, HOLD). Given Nokia’s declining share of global smartphone shipments, we were wary

of a potential “product hole” in 2H 2012 if design wins at other OEMs did not materialize.


SWKS reported FQ2’2012 revenues of $364.69 million compared to consensus estimates of $360.24 million

– a 1.2% surprise. EPS for the March quarter was $0.42/sh versus consensus estimates of $0.40/sh. Gross

margins were a healthy 43.2%.

For FQ3’2012 (June quarter), SWKS guided to ~5% sequential sales growth, i.e., sales of $383 million

compared Bloomberg consensus estimates of $381.6 million prior to the earnings call. The company

expects margins to continue to improve during 2012 as well.

Thoughts post-earnings: Reaping the benefits of diversification

In our opinion, SWKS’ CQ1’2012 results and CQ2’2012 guidance demonstrated its business strategy of

diversifying revenue streams so that challenges in any one area could be offset by strength in another.

Thus the company was able to overcome the “product hole” that we expected it might encounter in

CQ2’2012. With this challenge behind it, we expect longer term drivers of growth that we highlighted in

our April note (incremental dollar-content on LTE, growing smartphone shipments) to take over.

However, we are cautious of further upside from current prices since SWKS has significantly

outperformed the broader semiconductor sector in 2012. The stock is up ~61% compared to an increase

of ~2% in the SOX Index. Thus, on balance we no longer have a conviction view on the stock unless

additional value chain read-throughs emerge.

The following are some takeaways related to SWKS and its smartphone value chain from the CQ1’2012

earnings season.

1. Diversification at SWKS

The following examples of SWKS’ diversified business strategy were discussed at the earnings call:

a) Smartphone customers: SWKS announced design wins on various flagship smartphone devices,

including the Samsung Galaxy SIII, Huawei Ascend and MediaPad and the HTC One. These wins

have helped further diversify the company’s revenue exposure across smartphone vendors.

b) Products: SWKS has invested heavily in diversifying its product portfolio. In addition to its

traditional power amplifier (PA) modules, the company highlighted its ability to pursue

incremental dollar content with smartphone OEMs through products like antenna switch

modules (ASMs), GPS low noise amplifiers, power management, backlight and display solutions.

As management noted, several of these products were introduced in the last 18 months.

c) Customer industries: Beyond smartphones, SWKS’ high performance analog (HPA) division has

been diversifying into new verticals like wireless networking, gaming, military avionics, LED

backlighting and medical devices. Design wins with Sony’s Playstation 3 gaming console and LG

televisions have helped HPA contribute 35% of SWKS revenue.



2. Diversification at FIH

As Laura CHEN from BNPP Asia Tech has noted10, FoxConn International (“FIH”) has been aggressively

trying to increase its share with other OEMs to compensate for the detoriating Nokia business. Laura

estimates Huawei is now a 10-15% sales contributor for FIH. The company is also targeting local Chinese

vendors and Laura expects these manufactures to contribute approximately 10% of FIH sales in 2 years.

Other major OEMs whose share of FIH sales has increased include Sony (6758 JP, JPY 1,100, Not Rated), LG

and Motorola / Google.

Exhibit 5 below highlights the changes to FIH downstream value chain based on Bloomberg and BNPP Asia

Tech estimates. These changes in FIH’s customer mix prompt us to revisit our higher estimates of SWKS’

total exposure to Nokia.

EXHIBIT 6: FIH downstream Value Chain

Sources: Bloomberg, (1) Estimate from BNPP Asia Tech

3. Nokia and FIH are still key customers

SWKS did not update its revenue exposure to any specific vendor or ODM at the earnings call. However,

management noted that Samsung, Nokia and FIH remain the only customers with more than 10% of

revenue exposure.

As discussed above, while we are less cautious of a “product hole”, continued high exposure to Nokia and

FIH is still a potential risk for SWKS. On April 26, despite efforts to diversify the customer base, FIH issued

a profit warning, stating that 1H12 losses could widen due to weakening end-demand, detoriating ASPs

and product transitions. We will continue to monitor the value chain for any early signs that these same

factors are causing headwinds for SWKS.

10 Laura CHEN, FOXCONN INT'L HDGS - Positive 2H11 result, March 23, 2012.

Ticker Company % of Revenue Ticker Company % of Revenue

NOK1V FH Nokia OYJ 46.4 NOK1V FH Nokia OYJ 23.7

MMI US Motorola Mobility Holdings Inc 12.9 6758 JP Sony Corp 22.7

40978Z CH Huawei Technologies Co Ltd 15.0 (1) 066570 KS LG Electronics Inc 22.5

066570 KS LG Electronics Inc 9.1 MMI US Motorola Mobility Holdings Inc 18.8

40978Z CH Huawei Technologies Co Ltd 15.0 (1)

APRIL 2012 MAY 2012

http://www.bnppresearch.com/?E=bjcbckbccff



Other Key Takeaways from Earnings

Overall competitive landscape remains the same

KEY TAKEAWAY

Although a sluggish start to the year led to ~10% decline in global smartphone shipment units, the longer

term trend of strong smartphone growth remains intact. At the vendor level, AAPL and Samsung continue

to dominate, while HTC, Nokia and RIM (RIM CN, CAD 11.19, Not Rated) struggle. “Other” vendors –

particularly from China – continue to be important.

Global Shipment Trends

Exhibit 7 below shows smartphone unit shipments by vendor for CQ1’2012. As we discussed in our April

report, despite a sluggish start to the year, CQ1’2012 smartphone shipments rebounded in March leaving

total shipments down ~10%. This was still the worst sequential decline since 2009. However yoy

shipments were up ~43%, thus reiterating the continued momentum for smartphones.

EXHIBIT 7: Global Phone Shipments

Sources: IDC Worldwide Mobile Phone Tracker, May 1, 2012

Vendor Trends

At the vendor level, longer-term competitive dynamics in the industry that we highlighted in our April

report remain intact:

1 Apple and Samsung domination: These two vendors accounted for approximately 53% of global

smartphone shipments in Q1 2012. Samsung will begin shipping its Galaxy SIII flagship device in

Europe at the end of May, with US shipments expected in June. We expect Apple’s iPhone 5 to be

released in October. Both devices should provide further momentum to these vendors.

2 Emergence of “Other”: Although market share for the “other”11 category declined slightly (~0.8%) in

CQ1’2012, it is still higher on a yoy basis, reflecting growth for these OEMs. The BNPP Asia Techteam

expects the “other” category to grow from ~24% market share in 2011 to ~30% by 201312.

11 Includes LG, Motorola (MMI, NA, Not Rated), Sony Ericsson, Huawei, ZTE (763 HK, HKD 15.16, BUY) and other

low-cost vendors. 12 Laura CHEN. Taiwan Technology – Getting Smarter, February 12, 2012.

QoQ YoY

Vendor Units Market % Units Market % Change % Units Market % Change %

SMARTPHONES

Samsung 42.2 29.1 36.1 22.5 16.8 11.5 11.3 267.0

Apple 35.1 24.2 37.0 23.1 -5.2 18.6 18.3 88.7

Nokia 11.9 8.2 19.6 12.2 -39.2 24.2 23.8 -50.8

RIM 9.7 6.7 13.0 8.1 -25.3 13.8 13.6 -29.7

HTC 6.9 4.8 10.2 6.4 -32.6 9.0 8.9 -23.3

Other 39.1 27.0 44.6 27.8 -12.4 24.5 24.1 59.6

Total 144.9 160.6 -9.8 101.6 42.6

--- 1Q 2012 --- --- 1Q 2011 ------ 4Q 2011 ---

http://www.bnppresearch.com/?E=biggckbccff



3 Nokia still struggling: Nokia’s share of global smartphone units dropped below 10% for the first time

since 2008. These figures exclude sales of the Lumia 900, Nokia’s new flagship device. Initial reports

for Lumia 900 shipments were weak although recent media reports suggest improving momentum13.

4 HTC facing challenges: As Laura CHEN from BNPP Asia Tech14 has noted, HTC continues to struggle with

retaining market share in smartphones. April sales for the company were ~20% on a YoY basis, below

the 16% decline guided by the company for Q2’2012.

5 RIM losing steam: Despite previewing the Blackberry 10 OS earlier than expected, has largely failed to

generate interest amongst consumers and investors alike. The company continues to struggle to

maintain market share given its lagging technology roadmap.

28nm constraints: A bottleneck and an opportunity

KEY TAKEAWAY

While 28nm is currently a bottleneck for OEMs and chipmakers, we expect it will be a tailwind for

foundries for the rest of 2012. Szeho NG from BNPP Asia Tech expects TSMC to benefit disproportionately

from the demand for 28nm. We also think the improved foundry capex outlook will continue to be an

opportunity for semiconductor production equipment (SPE) suppliers through 2012.

A bottleneck for the first order value chain

During the recent earnings season, several smartphone chip makers indicated that shortage of 28nm

capacity at TSMC would affect CQ2’2012 earnings. In Exhibit 8 below, we summarize some of the

comments from these companies. These comments confirm that yields at TSMC for 28nm are improving

as expected, a view Szeho NG from BNPP Asia Tech has highlighted in his recent notes15. Supply

shortages were driven by demand being greater than available capacity.

EXHIBIT 8: Select Management comments regarding 28nm supply constraints

Sources: Company earnings call transcripts

13 Demand for Nokia Lumia 900 4G higher than supply? May 10, 2012.

14 Laura CHEN, HTC Corp – Challenging outlook continues, April 25, 2012.

15 Szeho NG, TSMC – An elephant can fly, March 26, 2012.

Ticker Company Date Comments

QCOM US QUALCOMM 18-Apr-12 Although the manufacturing yields are progressing per expectations, there's a shortage of 28-nanometer capacity and at this stage we cannot secure

enough supply to meet the increasing demand we're experiencing.

Looking forward, we believe we will see significant improvement in supply in the December quarter and we will continue to work this issue aggressively.

NVDA US Nvidia Inc 11-May-12 Demand is high for Kepler, and although supply will continue to improve, we are not able to meet all our OEM and channel demand in Q2.

We do not expect the 28-nanometer supply situation to resolve itself until later this year.

INVN US Invensense Inc 3-May-12 In the current quarter, a number of our key customers were caught off-guard by temporary component shortages associated with the new model 4G LTE

smartphone, which has resulted in push-out of their new product releases to the following quarters or downward adjustment in their current quarter

forecast. However, we do not believe that these component shortages will have a significant impact on the overall market adoption or development of

the market for our products and solutions.

ALTR US Altera 19-Apr-12 Our turns business was back-end loaded. As we attempted to fill those orders in the final weeks of the quarter, we had demand for products without the

corresponding supply. As we exited Q1, we experienced lengthening of foundry lead times, mainly for 28 and 40 nanometer product.

[In response to a question]: The yields in 28 nanometers, from our perspective, are fine. The challenge is capacity is very tight on 28 nanometer

http://www.mobilebloom.com/demand-for-nokia-lumia-900-4g-higher-than-supply/2213619/


http://www.bnppresearch.com/?E=bjcbikbccff



But a blessing for foundries and SPE makers

Szeho NG from BNPP Asia Tech estimates that TSMC fabs are running at mid-90% capacity, with advanced

28/40nm capacity maxed out16. He expects monthly sales to remain above TWD 40bn for the rest of 2012

(April sales were TWD 40.5bn) based on good order visibility through 3Q’2012.

At the same time, TSMC has significantly increased capex to address capacity constraints. The company

increased capex for 2012 to a record USD 8.0-8.5 billion from the earlier USD 6.0 billion with USD 1.3-1.5

billion of the increase dedicated to 28nm capacity build out to meet the demand17. Szeho notes that this

pace of capacity ramp-up to 50,000 12-inch wafers per month (wpm) for 28nm and below processes

exiting 2012 is unprecedented in TSMC’s history. In the past, it took TSMC at least 2.5 years to ramp up to

that level of capacity.

Exhibit 9 shows key US companies that supply semiconductor production equipment to TSMC. As shown

below, each of these companies reported sales higher than Bloomberg consensus estimates for CQ1’2012.

Comments from these companies suggest that foundry capacity remains tight and strong order flows from

28nm capacity build-up are expected to continue for the remainder of 2012.

EXHIBIT 9: TSMC Capex Suppliers

Sources: Bloomberg, Company earnings call transcripts

(1) Bloomberg consensus estimates

16 Szeho NG, TSMC – Record sales trek unfolding, May 11, 2012.

17 Szeho NG, TSMC – Catch me if you can, April 27, 2012.

Data as of May 18, 2012 % of TSMC % of Rev

Ticker Company Capex from TSMC Report Dt Est. (1) Actual Surp % Company Comments

AMAT US Applied

Materials Inc

13.4 10.0 5/17/2012 2,400 2,541 5.9 Results reflect strength in our semiconductor equipment business driven

by robust foundry spending

Foundry investment has contributed almost 60% of our revenue in the first

two quarters of FY2012

Despite the uptick in Q2, we believe foundry investment will be

maintained in the second half of 2012 and distributed over a broader base

of customers.

NVLS US Novellus

Systems Inc

3.5 12.0 4/18/2012 316 327 3.3 [In response to a question]: We see the strength coming in foundry and

logic. There is a significant amount of investment there both from a

capacity ramping as well as further technology investments.

KLAC US KLA-Tencor

Corp

2.5 10.0 4/26/2012 802 841 4.9 Leading-edge foundry capacity remains in tight supply as rapid growth in

the mobility markets is driving demand for increasingly complex

established application processors into the foundries. In this environment,

foundry market leaders are ramping production in an effort to meet high

levels of demand and to secure their positions in an increasingly

competitive market

UTEK US Ultratech Inc 0.4 12.0 4/27/2012 48 50 3.8 Looking at our future booking opportunities … are driven by foundry

ramping to 28 nanometer node, also for adding capacity for the 40

nanometer node.

The bulk of orders for the next four to six quarters will be for 28

nanometer devices.

--- CQ1'2012 Results ---

http://www.bnppresearch.com/?E=bjjigkbccff

http://www.bnppresearch.com/?E=bjhcgkbccff



In terms of other foundry players, while there has been speculation of potential 28nm capacity at UMC

(2303 TT, TWD 12.75, HOLD), the company expects revenues from 28nm to be only ~5% by year end,

compared to ~20% at TSMC. UMC’s guidance for 2012 capex and 28nm capacity plans was also

unchanged. Szeho NG from BNPP Asia Tech has highlighted UMC’s smaller and weakening balance sheet

(compared to TSMC) as a potential constraint on increasing 28nm capacity18, especially for the HKMG

(high k metal gate) process that is more capital intensive. Thus we don’t anticipate significant

incremental 28nm capacity from this supplier.

GlobalFoundries (Private) is another potential source of 28nm capacity for the industry, and several

media reports suggest that semi companies may be sampling chips with this supplier19.

18 Szeho NH, UMC - Pull more rabbits out? Hard, April 26, 2012.

19 UMC surges on Qualcomm order speculation, April 24, 2012.

http://www.bnppresearch.com/?E=bjgjikbccff

http://www.chinapost.com.tw/business/global-markets/2012/04/24/338909/UMC-surges.htm



Appendices

Appendix 1: Value Chain Indicator Framework

Our database of smartphone value chain relationships allows us to develop a quantitative framework for

identifying potential “outliers and anomalies” based on market prices and consensus fundamental

estimates. This system acts as a screening mechanism that, when combined with read-through’s from

the BNPP Asia Tech team and our understanding of the industry drivers, can identify potential investment

themes and ideas. We call this the “Value Chain Indicator” framework.

We focus on three types of variables within the quantitative framework:

1 Market returns: We have compile historical price data for the 35 US companies in the smartphone

value chain. This allows us to calculate various market returns – daily, weekly, monthly, quarterly etc.

In addition to capturing prices for individual companies, we created smartphone customer price

indices for each US supplier based on the quantified revenue relationships in our dataset.

2 Consensus fundamental estimates: We also compile annual and quarterly Bloomberg consensus sales

and earnings estimates for the smart phone value chain companies. Estimates that we consider

relevant to the value chain are Sales, EBITDA and EPS.

3 Customer fundamental estimate indices: We create supply chain indices of sales and earnings change

estimates for smartphone value chain suppliers based on consensus estimates for their customers and

the quantified revenue relationships.

Our variables are measured on different scales i.e. prices, returns, financial estimates. In order to

compare and combine variables in the same system, we transformed them into z-scores using the

formula below.

The quantitative framework combines the variables described above to identify price anomalies and

outliers. Thus the dependent variable (y-variable) in our regression model was the current price – or

rather the z-score of price. We analyze several combinations of independent variables (x-variables) to

see which value chain variables had explanatory power in a linear regression system.

One of the resulting models is based on quarterly changes in prices and estimates for both customers and

suppliers using data starting from January 2011. Results of this model are shown in Exhibit 10 below.

EXHIBIT 10: Quantitative Model - All Observations (as of April 12)

Sources: BNP Paribas, Bloomberg

R² = 0.4943-3

-2

-1

0

1

2

3

-3 -2 -1 0 1 2 3

Actual Price Z-score

Estimated Price Z-score



Exhibit 10 charts the actual price (score) on the y-axis and the model estimated price (score) on the x-

axis. If all companies in the smartphone value chain were priced according to the estimate based on

value chain data, all points in the above chart would lie on the green line that runs through the chart –

i.e., the trend line of the regression. Deviations from this trend line are normal and result mainly due to

the fact that our model only explains about 50% of the variance. Many stocks above the line (i.e., the

current price is higher than the model estimate) should be above, and many below should be below.

However, when a company is significantly above or below the trend line (indicated by the 2 red lines and

defined as +/-1 standard error), it prompts us to investigate why. As we dig into these “anomalies”, we

hope to identify potential investment opportunities.



Appendix 2: Smartphone Value Chain

EXHIBIT 11: Smartphone Value Chain

Sources: BNP Paribas

Samsung Samsung Samsung Samsung Samsung [005930 KS]

Toshiba Toshiba [6502 JP] LG Display [034220 KS] Huawei Huawei [40978Z CH]

Altera [ALTR US] Hynix [000660 KS] AU Opt. [2409 TT] Qualcomm Qualcomm [QCOM US] Hon Hai [2317 TT] Apple [AAPL US]

Analog Dvcs [ADI US] SanDisk [SNDK US] Chimei Inn. [3481 TT] Texas Inst Texas Inst [TXN US] FoxConn Int [2038 HK] Nokia [NOK1V FH]

Vishay [VSH US] Micron [MU US] Cypress [CY US] Broadcom Broadcom [BRCM US] Jabil [JBL US] HTC [2498 TT]

Infineon [IFX GR] Wintek [2384 TT] STMicro STMicro [STM IM] Flextronics [FLEX US] LG Elec [066570 KS]

Motorola TPK [3673 TT] Motorola [MMI US]

Sony [6758 JP] Sony

Xilinx [XLNX US] Nuance [NUAN US] Nvidia [NVDA US] Pegatron [4938 TT] RIM [RIM CN]

Maxim Intgtd [MXIM US] Marvell [MRVL US] MediaTek [2454 TT] Celestica [CLS CN] ZTE [000063 CH]

Linear Tech [LLTC US] Skyworks [SWKS US] Cogo Grp [COGO US]

NXP Semi [NXPI US] Freescale [FSL US]

Rohm [6963 JP] Avago [AVGO US]

LSI [LSI US] RF Micro [RFMD US]

Molex [MOLX US] TriQuint [TQNT US]

ON Semi [ONNN US] CSR [CSR LN]

GoerTek [002241 CH] Anadigics [ANAD US]

AVX [AVX US] Sequans [SQNS US]

Fujitsu [6702 JP] Fujitsu

Renesas [6723 JP] Renesas

Fairchild [FCS US]

Silicon Labs [SLAB US]

InvenSense [INVN US]

Int. Rectifier [IRF US]

Cavium [CAVM US]

Dialog Semi [DLG GR]

Cirrus Logic [CRUS US]

Intersil [ISIL US]

Diodes [DIOD US]

LITE-ON IT [8008 TT]

Wistron Neweb [6285 TT]

Genius [3406 TT]

Nanya PCB [8046 TT]

TXC Corp [3042 TT]

Unimicron [3037 TT]

Largan [3008 TT]

Other IC / Components

DisplayMemory Other Comm.ICs

Baseband / App. Processor

ODM / EMS Partners

Smartphone Vendors



Appendix 3: Market Returns by Segment

EXHIBIT 12: Price Performance by Segment

(continued on next page)

Sources: Bloomberg (data as of May 23, 2012)

Equal Weighting Weighted by % Market Cap

Equal Weighting Weighted by % Smartphone Revenue Vs. Vendor Price Index (equal wght)



-20 -10 0 10 20

1mo

3mo

1yr

Percent Change in Price

Vendors XLK Equity

-20 -10 0 10 20

1mo

3mo

1yr


Suppliers XLK Equity

-40 -20 0 20

1mo

3mo

1yr



-20 -10 0

1mo

3mo

1yr


Suppliers Vendors

-20 -10 0 10 20

1mo

3mo

1yr



-20 -10 0 10 20

1mo

3mo

1yr



-15 -10 -5 0

1mo

3mo

1yr


Suppliers Vendors

-40 -20 0 20

1mo

3mo

1yr



-40 -20 0 20

1mo

3mo

1yr



-40 -20 0

1mo

3mo

1yr


Suppliers Vendors

-50 0 50 100

1mo

3mo

1yr


Vendors XLK Equity

SmartphoneVendors

ODM / EMS Partners

Baseband / App Proc.

Other Comm ICs



EXHIBIT 13: Price Performance by Segment (continued)






-40 -20 0 20

1mo

3mo

1yr



-40 -20 0 20

1mo

3mo

1yr



-40 -20 0

1mo

3mo

1yr


Suppliers Vendors

-100 -50 0 50

1mo

3mo

1yr



-100 -50 0 50

1mo

3mo

1yr



-60 -40 -20 0

1mo

3mo

1yr


Suppliers Vendors

-40 -20 0 20

1mo

3mo

1yr



-20 -10 0 10 20

1mo

3mo

1yr



-30 -20 -10 0

1mo

3mo

1yr


Suppliers Vendors

-40 -20 0 20

1mo

3mo

1yr



-40 -20 0 20

1mo

3mo

1yr



-30 -20 -10 0

1mo

3mo

1yr


Suppliers Vendors

Memory

Display


Second Order Value Chain

1

12

2

2



Appendix 4: Segment Comparisons

EXHIBIT 14: Segment Comparisons - Equally weighted indices


Market Price Returns

Gross Margins

Days of Inventory

Changes in Bloomberg Consensus Sales Estimates - CQ1 2012

-60

-50

-40

-30

-20

-10

0

% P

rice Perform

ance

1 year 3 months 1 month

Smartphone Vendors

ODM / EMS Partners

Baseband / App Proc. Other Comm ICs Memory Display


SecondOrder Value Chain

112

22

0

10

20

30

40

50

% G

ross M

argin

CQ2'11 CQ3'11 CQ4'11 CQ1'12

Smartphone Vendors

ODM / EMS Partners




112

22

0

25

50

75

100

125

150

Days of Inventory

CQ2'11 CQ3'11 CQ4'11 CQ1'12

Smartphone Vendors

ODM / EMS Partners




112

22

-30

-20

-10

0

10

% Chan

ge in

BEst Sales

12 weeks 4 weeks

Smartphone Vendors

ODM / EMS Partners




112

22



Appendix 5: Trends by Key Smartphone Vendor Value Chains

EXHIBIT 15: Price, Gross Margin, DOI and CQ2-12 Sales Est. Trends by Vendor



Apple

% Market Returns % Gross Margin (last 2 quarters) DOI Trends (last 8Qs) - Indexed to 1 Chg in CQ2-12 Sales Est*

Source: Bloomberg Consensus Est.

Samsung



HTC Corp



-20 -10 0 10

Apple

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

1 week 1 month

-20 0 20 40 60

Apple

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

CQ4-11 CQ1-12

0.0

0.5

1.0

1.5

CQ2-10

CQ3-10

CQ4-10

CQ1-11

CQ2-11

CQ3-11

CQ4-11

CQ1-12

Apple ODM / EMSBaseband / AP Other Comm ICMemory DisplayOther IC

-20 0 20

Apple

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

12 weeks 4 weeks

-20 -10 0 10

Samsung

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

1 week 1 month

0 20 40 60

Samsung

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

CQ4-11 CQ1-12

0.0

0.5

1.0

1.5

CQ2-10

CQ3-10

CQ4-10

CQ1-11

CQ2-11

CQ3-11

CQ4-11

CQ1-12

Samsung ODM / EMSBaseband / AP Other Comm ICMemory DisplayOther IC

-50 0 50

Samsung

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

12 weeks 4 weeks

-40 -20 0 20

HTC

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

1 week 1 month

-50 0 50 100

HTC

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

CQ4-11 CQ1-12

0.0

1.0

2.0

3.0

4.0

CQ2-10

CQ3-10

CQ4-10

CQ1-11

CQ2-11

CQ3-11

CQ4-11

CQ1-12

HTC ODM / EMSBaseband / AP MemoryDisplay Other ICOther Comm IC

-30 -20 -10 0 10

HTC

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

12 weeks 4 weeks



EXHIBIT 16: Price, Gross Margin, DOI and CQ2-12 Sales Est. Trends by Vendor (continued)


Nokia



Research In Motion



Motorola Mobility Holdings



-40 -20 0 20

Nokia

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

1 week 1 month

-20 0 20 40 60

Nokia

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

CQ4-11 CQ1-12

0.0

0.5

1.0

1.5

CQ2-10

CQ3-10

CQ4-10

CQ1-11

CQ2-11

CQ3-11

CQ4-11

CQ1-12

Nokia ODM / EMSBaseband / AP Other Comm ICMemory DisplayOther IC

-20 -10 0 10

Nokia

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

12 weeks 4 weeks

-20 -10 0 10

RIM

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

1 week 1 month

0 20 40 60

RIM

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

CQ4-11 CQ1-12

0.0

0.5

1.0

1.5

2.0CQ2-10

CQ3-10

CQ4-10

CQ1-11

CQ2-11

CQ3-11

CQ4-11

CQ1-12

Motorola ODM / EMSBaseband / AP Other Comm ICMemory DisplayOther IC

-30 -20 -10 0 10

RIM

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

12 weeks 4 weeks

-40 -20 0 20

Motorola

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

1 week 1 month

0 20 40 60

Motorola

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

CQ4-11 CQ1-12

0.0

0.5

1.0

1.5

2.0

CQ2-10

CQ3-10

CQ4-10

CQ1-11

CQ2-11

CQ3-11

CQ4-11

CQ1-12

Motorola ODM / EMS

Baseband / AP Other Comm IC

Memory Other IC-20 -10 0 10

Motorola

ODM / EMS

Baseband / AP

Other Comm IC

Memory

Display

Other IC

12 weeks 4 weeks



Appendix 6: Price Performance and Analyst Estimates by Company

EXHIBIT 17: Price Performance, Target Price, BNPP Asia Ratings - Constituent Companies


Sources: (1) Bloomberg consensus estimates, (2) BNP Paribas Asia research, Prices and returns from Bloomberg

Ticker Name Curncy Price 1wk 1mo 3mo 1y TP 4wk ∆ (%) Rating TP % vs Cons

Smartphone Vendors

AAPL US Apple Inc USD 570.56 7.6 1.8 9.2 71.8 735 0.2

005930 KS Samsung Electronics Co Ltd KRW 1,221,000 -0.2 -6.4 3.5 42.6 1,766,647 8.2 BUY 1,700,000 -3.8

NOK1V FH Nokia OYJ EUR 2.12 -5.0 -22.1 -50.9 -63.3 3 -5.2

2498 TT HTC Corp TWD 422.50 2.1 -10.2 -32.8 -61.8 490 -2.6 REDUCE 430 -12.3

066570 KS LG Electronics Inc KRW 65,200 -2.1 -16.1 -22.8 -32.4 102,869 -1.0 REDUCE 69,000 -32.9

MMI US Motorola Mobility Holdings Inc USD 39.98 0.0 4.8 0.6 68.6 40 1.8

000063 CH ZTE Corp CNY 15.63 -6.0 -11.2 -9.5 -26.5 23 0.0

RIM CN Research In Motion Ltd CAD 11.37 1.8 -13.1 -22.8 -73.0 13 -5.6

40978Z CH Huawei Technologies Co Ltd CNY Na

ODM / EMS Partners

2317 TT Hon Hai Precision Industry Co TWD 87.00 1.5 -17.9 -12.1 -5.2 105 -19.3 HOLD 94 -10.4

2038 HK Foxconn International Holdings HKD 3.44 1.5 -25.1 -37.7 -16.5 5 -13.9 HOLD 6 18.5

JBL US Jabil Circuit Inc USD 19.38 2.2 -11.1 -25.5 -4.9 30 0.0

FLEX US Flextronics International Ltd USD 6.48 -1.1 -1.8 -9.6 -4.5 9 3.2

4938 TT Pegatron Corp TWD 41.95 -2.9 -7.6 12.2 41.7 49 3.4 BUY 53 7.2

CLS CN Celestica Inc CAD 7.73 2.7 -12.7 -18.7 -19.6 10 0.1

COGO US Cogo Group Inc USD 1.91 -3.5 -25.4 -11.6 -68.5 5 0.0

Baseband / Application Processor

005930 KS Samsung Electronics Co Ltd KRW 1,221,000 -0.2 -6.4 3.5 42.6 1,766,647 8.2 BUY 1,700,000 -3.8

QCOM US QUALCOMM Inc USD 58.14 1.7 -6.0 -8.4 3.2 72 -0.1

TXN US Texas Instruments Inc USD 29.14 -0.7 -7.1 -12.5 -14.5 36 0.1

BRCM US Broadcom Corp USD 32.29 3.2 -6.2 -12.1 -1.3 43 1.8

2454 TT MediaTek Inc TWD 253.00 -7.2 -3.8 -16.2 -18.4 269 -3.5 BUY 310 15.3

NVDA US NVIDIA Corp USD 12.44 -1.7 -3.0 -21.2 -31.4 17 -0.4

STM IM STMicroelectronics NV EUR 4.10 10.0 -7.1 -24.8 -47.5 5 -2.9

Other Communication ICs

AVGO US Avago Technologies Ltd USD 33.52 11.5 2.6 -7.7 5.7 42 -1.0

MRVL US Marvell Technology Group Ltd USD 13.10 -1.5 -11.0 -15.3 -7.8 18 -2.1

NUAN US Nuance Communications Inc USD 21.38 -0.9 -3.5 -14.8 0.9 30 0.0

SWKS US Skyworks Solutions Inc USD 26.11 6.6 9.9 1.0 -1.5 32 3.6

FSL US Freescale Semiconductor Ltd USD 9.86 1.4 -19.4 -41.0 -41.0 18 -0.9

RFMD US RF Micro Devices Inc USD 3.59 -2.2 -9.6 -27.0 -37.6 6 -0.6

TQNT US TriQuint Semiconductor Inc USD 5.42 6.1 5.7 -17.0 -54.5 6 5.8

CSR LN CSR PLC GBp 207.90 -0.4 3.0 -16.4 -43.4 280 4.0

ANAD US ANADIGICS Inc USD 2.00 0.0 -9.5 -25.7 -34.6 3 -30.4

SQNS US Sequans Communications SA USD 2.16 -4.2 -4.2 -32.0 -83.9 2 -19.4

Memory

6502 JP Toshiba Corp JPY 303.00 -5.9 -7.6 -12.7 -26.8 425 -0.9 BUY 458 7.7

000660 KS SK Hynix Inc KRW 22,400 -8.6 -17.2 -22.4 -25.3 35,844 0.8 BUY 34,000 -5.1

SNDK US SanDisk Corp USD 32.92 1.8 -9.8 -33.0 -27.0 44 -3.7

MU US Micron Technology Inc USD 5.75 -3.4 -11.7 -27.7 -40.2 11 -1.8

---- Current Price ----Data as of May 23, 2012 ----- Market Returns (%) ----- ----- Consensus (1) ----- ----- BNPP (2) -----



EXHIBIT 18: Price Performance, Target Price, BNPP Asia Ratings - Constituent Companies (continued)

Sources: (1) Bloomberg consensus estimates, (2) BNP Paribas Asia research, Prices and returns from Bloomberg

Ticker Name Curncy Price 1wk 1mo 3mo 1y TP 4wk ∆ (%) Rating TP % vs Cons

Display

034220 KS LG Display Co Ltd KRW 20,400 -1.4 -24.0 -28.8 -43.3 31,927 -2.2 HOLD 28,000 -12.3

2409 TT AU Optronics Corp TWD 11.85 -7.8 -15.4 -25.5 -48.8 17 0.6 REDUCE 10 -42.1

3673 TT TPK Holding Co Ltd TWD 407.50 3.0 5.8 -16.2 -51.3 476 -2.5 BUY 500 5.0

3481 TT Chimei Innolux Corp TWD 12.15 -4.7 -7.3 -22.1 -56.3 14 -13.2 REDUCE 10 -31.0

CY US Cypress Semiconductor Corp USD 12.94 0.7 -14.1 -27.1 -38.1 21 5.3

2384 TT Wintek Corp TWD 16.70 -8.2 -15.7 -35.5 -49.0 21 -4.1 REDUCE 17 -18.0

Other ICs / Components

6758 JP Sony Corp JPY 1,096.00 -5.6 -17.2 -37.0 -51.0 1,430 -15.7

ALTR US Altera Corp USD 34.07 2.0 0.2 -12.4 -25.6 41 -1.3

ADI US Analog Devices Inc USD 35.68 0.0 -4.8 -8.2 -11.8 42 -1.6

6702 JP Fujitsu Ltd JPY 348.00 -5.7 -12.3 -20.4 -13.9 449 -3.7

IFX GR Infineon Technologies AG EUR 6.31 -2.0 -13.3 -16.4 -19.8 8 -1.1

XLNX US Xilinx Inc USD 32.07 0.7 -4.4 -13.9 -6.9 39 -1.3

MXIM US Maxim Integrated Products Inc USD 25.30 -1.4 -5.3 -10.8 -5.1 32 4.4

LLTC US Linear Technology Corp USD 29.16 -1.0 -8.6 -12.5 -12.5 36 0.0

NXPI US NXP Semiconductor NV USD 21.81 6.6 -8.7 -12.7 -19.8 31 3.8

6963 JP Rohm Co Ltd JPY 3,045.00 -8.0 -16.9 -24.7 -33.7 3,924 -0.8 HOLD 3,850 -1.9

LSI US LSI Corp USD 6.93 -7.5 -13.7 -18.5 -3.2 12 -0.1

MOLX US Molex Inc USD 23.47 0.0 -12.6 -14.3 -11.7 28 -1.1

ONNN US ON Semiconductor Corp USD 6.71 -3.5 -15.0 -25.1 -38.0 11 -2.0

002241 CH GoerTek Inc CNY 30.60 3.4 17.9 16.0 46.4 27 0.0

6723 JP Renesas Electronics Corp JPY 263.00 -17.8 -43.9 -56.6 -63.1 376 -23.6

3008 TT Largan Precision Co Ltd TWD 556.00 3.2 3.5 -13.0 -37.4 558 -2.7 REDUCE 420 -24.7

AVX US AVX Corp USD 10.91 0.1 -12.9 -18.5 -29.2 14 0.0

3037 TT Unimicron Technology Corp TWD 28.85 -2.5 -12.6 -25.8 -42.3 34 -12.6

VSH US Vishay Intertechnology Inc USD 9.89 2.1 -8.5 -21.5 -34.6 16 7.9

FCS US Fairchild Semiconductor Intern USD 13.36 0.4 0.8 -10.4 -23.7 17 0.0

SLAB US Silicon Laboratories Inc USD 33.84 0.7 -16.2 -26.1 -20.9 43 -2.6

DLG GR Dialog Semiconductor PLC EUR 15.45 0.5 -5.2 -1.0 13.5 19 0.3

CRUS US Cirrus Logic Inc USD 27.74 8.7 33.4 21.3 76.7 34 0.0

CAVM US Cavium Inc USD 24.64 3.7 -9.3 -31.0 -42.9 29 -6.4

IRF US International Rectifier Corp USD 18.68 2.2 -7.8 -18.8 -33.5 25 -2.6

8046 TT Nan Ya Printed Circuit Board C TWD 48.00 -4.6 -13.5 -34.1 -55.1 55 -2.9 REDUCE 45 -17.7

ISIL US Intersil Corp USD 10.52 -1.2 -1.5 -6.2 -23.4 12 1.0

INVN US InvenSense Inc USD 10.56 2.4 -27.4 -40.7 -40.7 21 0.7

DIOD US Diodes Inc USD 19.47 2.2 -8.5 -23.0 -30.6 27 -5.7

8008 TT LITE-ON IT Corp TWD 28.40 -1.7 -4.5 -6.1 -8.8 0

3406 TT Genius Electronic Optical Co L TWD 204.50 -2.2 -8.5 -29.2 -31.9 132 0.0

6285 TT Wistron NeWeb Corp TWD 53.80 -2.5 -8.5 -19.5 -44.9 78 -1.6

3042 TT TXC Corp TWD 42.55 1.3 -5.0 -4.3 -22.1 48 -1.4


2330 TT TSMC TWD 79.10 -7.1 -6.1 0.0 6.2 93 0.0 BUY 96 2.9

GLW US Corning Inc USD 12.77 -0.4 -4.3 -7.1 -34.7 16 -1.5

ASML NA ASML Holding NV EUR 36.25 1.1 -1.6 4.9 35.2 39 0.3

AMAT US Applied Materials Inc USD 10.67 1.8 -7.1 -15.5 -22.2 14 -4.9

8035 JP Tokyo Electron Ltd JPY 3,725 -8.7 -16.2 -17.8 -15.5 4,692 -2.2 BUY 4,700 0.2

2303 TT United Microelectronics Corp TWD 12.75 -8.9 -14.4 -14.4 -12.4 16 0.3 HOLD 14 -9.7

2311 TT Advanced Semiconductor Enginee TWD 27.70 -1.8 -4.2 -3.1 -6.1 33 2.3 BUY 35 6.7

5214 JP Nippon Electric Glass Co Ltd JPY 511.00 -8.1 -21.5 -33.2 -54.0 658 -6.7 REDUCE 520 -21.0

3436 JP Sumco Corp JPY 682.00 -7.1 -21.5 -20.0 -51.5 880 -3.0

PANL US Universal Display Corp USD 29.74 3.2 -21.6 -34.4 -30.5 46 -4.0

AMKR US Amkor Technology Inc USD 4.53 3.0 -20.1 -28.2 -28.1 8 12.5

CCMP US Cabot Microelectronics Corp USD 33.01 1.8 -3.0 -8.8 -3.9 42 0.0

STAT SP STATS ChipPAC Ltd SGD 0.39 -6.0 -19.6 -26.4 -44.7 0

HIMX US Himax Technologies Inc USD 2.04 -0.5 1.5 37.8 -6.8 4 31.6

LTXC US LTX-Credence Corp USD 6.49 5.5 0.2 -9.2 -16.8 9 4.3

Data as of May 23, 2012 ---- Current Price ---- ----- Market Returns (%) ----- ----- Consensus (1) ----- ----- BNPP (2) -----



Appendix 7: Consensus Valuation Multiples by Company

EXHIBIT 19: Consensus Valuation Metrics - Constituent Companies


Sources: Bloomberg consensus estimates

Ticker Name Crncy Price Mkt Cap Entp Val FY 2012e FY 2013e FY 2012e FY 2013e FY 2012e FY 2013e

Smartphone Vendors

AAPL US Apple Inc USD 570.56 530,442 420,510 12.1 x 10.5 x 61,988 72,852 6.8 x 5.8 x

005930 KS Samsung Electronics Co Ltd KRW 1,221,000 153,176 146,663

NOK1V FH Nokia OYJ EUR 2.12 10,061 6,120 -11.7 x 24.6 x -109 1,877 -56.0 x 3.3 x

2498 TT HTC Corp TWD 422.50 12,379 9,750 7.5 x 7.2 x 1,469 1,250 6.6 x 7.8 x

066570 KS LG Electronics Inc KRW 65,200 9,210 12,886 10.3 x 8.2 x

MMI US Motorola Mobility Holdings Inc USD 39.98 12,141 9,076 73.2 x 46.9 x 337 410 26.9 x 22.1 x

000063 CH ZTE Corp CNY 15.63 8,084 9,968 14.0 x 11.2 x 1,011 1,285 9.9 x 7.8 x

RIM CN Research In Motion Ltd CAD 11.37 5,668 3,894 6.2 x 6.1 x 2,406 2,477 1.6 x 1.6 x

40978Z CH Huawei Technologies Co Ltd CNY Na Na Na

ODM / EMS Partners

2317 TT Hon Hai Precision Industry Co TWD 87.00 30,805 34,113 10.3 x 8.3 x 5,696 6,963 6.0 x 4.9 x

2038 HK Foxconn International Holdings HKD 3.44 3,108 1,688 38.6 x 23.6 x 333 411 5.1 x 4.1 x

JBL US Jabil Circuit Inc USD 19.38 3,952 4,658 7.4 x 6.4 x 1,081 1,219 4.3 x 3.8 x

FLEX US Flextronics International Ltd USD 6.48 4,381 5,065 6.3 x 5.4 x 1,292 1,417 3.9 x 3.6 x

4938 TT Pegatron Corp TWD 41.95 3,103 3,685 13.0 x 8.2 x 800 4.6 x

CLS CN Celestica Inc CAD 7.73 1,640 993 7.1 x 6.5 x 325 353 3.1 x 2.8 x

COGO US Cogo Group Inc USD 1.91 64 39 3.7 x 3.2 x 21 24 1.9 x 1.6 x


005930 KS Samsung Electronics Co Ltd KRW 1,221,000 153,176 146,663

QCOM US QUALCOMM Inc USD 58.14 98,365 72,876 15.3 x 13.7 x 7,499 8,753 9.7 x 8.3 x

TXN US Texas Instruments Inc USD 29.14 33,106 34,938 16.3 x 12.3 x 3,913 4,807 8.9 x 7.3 x

BRCM US Broadcom Corp USD 32.29 17,505 16,644 10.8 x 10.0 x 1,937 2,127 8.6 x 7.8 x

2454 TT MediaTek Inc TWD 253.00 9,945 9,031 20.4 x 16.3 x

NVDA US NVIDIA Corp USD 12.44 7,559 4,451 13.0 x 10.6 x 811 958 5.5 x 4.6 x

STM IM STMicroelectronics NV EUR 4.10 4,711 4,184 272.3 x 10.9 x 722 1,317 5.8 x 3.2 x


AVGO US Avago Technologies Ltd USD 33.52 8,025 7,077 12.7 x 11.3 x 833 937 8.5 x 7.6 x

MRVL US Marvell Technology Group Ltd USD 13.10 7,347 5,144 10.6 x 8.8 x 783 964 6.6 x 5.3 x

NUAN US Nuance Communications Inc USD 21.38 6,430 6,862 12.7 x 11.4 x 660 750 10.4 x 9.1 x

SWKS US Skyworks Solutions Inc USD 26.11 4,866 4,566 13.7 x 12.2 x 407 495 11.2 x 9.2 x

FSL US Freescale Semiconductor Ltd USD 9.86 2,393 8,218 22.1 x 6.6 x 919 1,162 8.9 x 7.1 x

RFMD US RF Micro Devices Inc USD 3.59 1,030 882 19.6 x 11.6 x 96 162 9.2 x 5.5 x

TQNT US TriQuint Semiconductor Inc USD 5.42 897 702 -443.3 x 17.3 x 66 137 10.6 x 5.1 x

CSR LN CSR PLC GBp 207.90 655 405 12.3 x 9.8 x 98 112 4.2 x 3.6 x

ANAD US ANADIGICS Inc USD 2.00 139 55 -2.8 x -4.1 x -43 -25 -1.3 x -2.2 x

SQNS US Sequans Communications SA USD 2.16 76 27 -3.0 x -9.5 x -22 -11 -1.2 x -2.4 x

Memory

6502 JP Toshiba Corp JPY 303.00 16,264 34,876 10.2 x 8.0 x 6,679 7,379 5.2 x 4.7 x

000660 KS SK Hynix Inc KRW 22,400 13,199 15,267 62.8 x 8.4 x 3,179 4,558 4.8 x 3.3 x

SNDK US SanDisk Corp USD 32.92 7,914 4,070 16.5 x 10.4 x 1,001 1,349 4.1 x 3.0 x

MU US Micron Technology Inc USD 5.75 5,720 7,309 -9.7 x 8.7 x 2,051 3,263 3.6 x 2.2 x

-------------------- Bloomberg Consensus Estimates ------------------------- Market Valuation -----Data as of May 23, 2012

P/E Ratio EBITDA ( USD mm)in USD millions EV / EBITDA



EXHIBIT 20: Consensus Valuation Metrics - Constituent Companies (continued)


Ticker Name Crncy Price Mkt Cap Entp Val FY 2012e FY 2013e FY 2012e FY 2013e FY 2012e FY 2013e

Display

034220 KS LG Display Co Ltd KRW 20,400 6,257 9,655 14.9 x 8.6 x 4,261 4,799 2.3 x 2.0 x

2409 TT AU Optronics Corp TWD 11.85 3,549 8,421 -4.1 x 57.4 x 1,947 2,623 4.3 x 3.2 x

3673 TT TPK Holding Co Ltd TWD 407.50 3,203 Na 8.2 x 7.7 x 727 783

3481 TT Chimei Innolux Corp TWD 12.15 2,977 9,921 -3.3 x -20.4 x 2,059 2,762 4.8 x 3.6 x

CY US Cypress Semiconductor Corp USD 12.94 1,973 1,909 15.1 x 10.4 x 140 235 13.6 x 8.1 x

2384 TT Wintek Corp TWD 16.70 935 1,395 27.0 x 15.3 x 319 332 4.4 x 4.2 x


6758 JP Sony Corp JPY 1,096 13,969 14,917 23.8 x 10.9 x 6,391 7,244 2.3 x 2.1 x

ALTR US Altera Corp USD 34 10,902 7,926 19.6 x 15.5 x 675 882 11.7 x 9.0 x

ADI US Analog Devices Inc USD 36 10,710 7,822 16.5 x 13.4 x 976 1,179 8.0 x 6.6 x

6702 JP Fujitsu Ltd JPY 348 9,117 12,459 10.3 x 8.7 x 4,066 4,303 3.1 x 2.9 x

IFX GR Infineon Technologies AG EUR 6 8,517 5,947 14.3 x 11.6 x 1,281 1,529 4.6 x 3.9 x

XLNX US Xilinx Inc USD 32 8,326 7,323 15.8 x 13.7 x 768 903 9.5 x 8.1 x

MXIM US Maxim Integrated Products Inc USD 25 7,346 6,722 16.8 x 13.7 x 778 890 8.6 x 7.6 x

LLTC US Linear Technology Corp USD 29 6,692 6,379 15.4 x 12.9 x 640 775 10.0 x 8.2 x

NXPI US NXP Semiconductor NV USD 22 5,446 9,144 12.1 x 7.8 x 1,160 1,404 7.9 x 6.5 x

6963 JP Rohm Co Ltd JPY 3,045 4,239 1,498 27.9 x 20.7 x 765 876 2.0 x 1.7 x

LSI US LSI Corp USD 7 3,914 3,291 8.8 x 8.1 x 502 586 6.6 x 5.6 x

MOLX US Molex Inc USD 23 3,826 3,460 14.7 x 13.3 x 651 704 5.3 x 4.9 x

ONNN US ON Semiconductor Corp USD 7 2,997 3,320 9.7 x 6.6 x 574 743 5.8 x 4.5 x

002241 CH GoerTek Inc CNY 31 3,988 3,939 27.5 x 19.4 x 219 308 18.0 x 12.8 x

6723 JP Renesas Electronics Corp JPY 263 1,407 3,036 -3.0 x 18.2 x 983 1,335 3.1 x 2.3 x

3008 TT Largan Precision Co Ltd TWD 556 2,556 2,488 16.7 x 13.4 x 229 10.9 x

AVX US AVX Corp USD 11 1,838 1,025 11.9 x 10.3 x 270 315 3.8 x 3.3 x

3037 TT Unimicron Technology Corp TWD 29 1,482 1,618 9.4 x 7.6 x 460 525 3.5 x 3.1 x

VSH US Vishay Intertechnology Inc USD 10 1,531 1,003 8.4 x 6.6 x 444 507 2.3 x 2.0 x

FCS US Fairchild Semiconductor Intern USD 13 1,695 1,586 17.8 x 10.5 x 262 350 6.1 x 4.5 x

SLAB US Silicon Laboratories Inc USD 34 1,458 1,124 16.8 x 14.9 x 124 132 9.1 x 8.5 x

DLG GR Dialog Semiconductor PLC EUR 15 1,322 1,189 18.0 x 12.6 x 120 171 9.9 x 7.0 x

CRUS US Cirrus Logic Inc USD 28 1,748 1,566 16.1 x 13.6 x 124 190 12.6 x 8.2 x

CAVM US Cavium Inc USD 25 1,194 1,132 83.7 x 26.2 x -3 39 -328.2 x 28.7 x

IRF US International Rectifier Corp USD 19 1,278 935 -513.3 x 22.3 x 93 160 10.0 x 5.9 x

8046 TT Nan Ya Printed Circuit Board C TWD 48 1,048 679 13.6 x 9.9 x 100 165 6.8 x 4.1 x

ISIL US Intersil Corp USD 11 1,345 1,131 21.6 x 12.5 x 95 151 11.9 x 7.5 x

INVN US InvenSense Inc USD 11 820 662 16.1 x 11.6 x 69 105 9.5 x 6.3 x

DIOD US Diodes Inc USD 19 875 766 19.8 x 12.2 x 118 163 6.5 x 4.7 x

8008 TT LITE-ON IT Corp TWD 28 864 653 8.4 x 7.6 x 200 212 3.3 x 3.1 x

3406 TT Genius Electronic Optical Co L TWD 205 605 593 15.6 x 17.1 x

6285 TT Wistron NeWeb Corp TWD 54 490 412 8.7 x 7.0 x

3042 TT TXC Corp TWD 43 427 485 11.1 x 9.5 x


2330 TT TSMC TWD 79.10 70,574 69,023 12.9 x 11.6 x

GLW US Corning Inc USD 12.77 19,456 15,862 9.5 x 8.5 x 2,591 2,911 6.1 x 5.4 x

ASML NA ASML Holding NV EUR 36.25 19,501 16,544 13.5 x 11.3 x 1,847 2,094 9.0 x 7.9 x

AMAT US Applied Materials Inc USD 10.67 13,596 13,360 11.1 x 8.9 x 2,064 2,230 6.5 x 6.0 x

8035 JP Tokyo Electron Ltd JPY 3,725 8,386 5,518 16.9 x 11.8 x 1,069 1,398 5.2 x 3.9 x

2303 TT United Microelectronics Corp TWD 12.75 5,481 5,086 14.1 x 10.9 x 1,502 1,735 3.4 x 2.9 x

2311 TT Advanced Semiconductor Enginee TWD 27.70 6,078 7,319 12.0 x 9.7 x

5214 JP Nippon Electric Glass Co Ltd JPY 511 3,193 2,993 12.0 x 12.2 x 1,191 1,169 2.5 x 2.6 x

3436 JP Sumco Corp JPY 682 2,218 5,193 27.4 x 6.0 x 685 860 7.6 x 6.0 x

PANL US Universal Display Corp USD 29.74 1,370 1,033 42.0 x 16.9 x 44 103 23.7 x 10.1 x

AMKR US Amkor Technology Inc USD 4.53 766 1,747 6.5 x 5.1 x 620 308 2.8 x 5.7 x

CCMP US Cabot Microelectronics Corp USD 33.01 767 786 15.9 x 12.1 x 95 120 8.3 x 6.6 x

STAT SP STATS ChipPAC Ltd SGD 0.39 690 1,389

HIMX US Himax Technologies Inc USD 2.04 354 312 7.2 x

LTXC US LTX-Credence Corp USD 6.49 316 172 -18.3 x 10.8 x -3 51 -52.1 x 3.4 x

----- Market Valuation ----- -------------------- Bloomberg Consensus Estimates --------------------Data as of May 23, 2012

in USD millions P/E Ratio EBITDA ( USD mm) EV / EBITDA



Appendix 8: Consensus Sales Trends by Company

EXHIBIT 21: Consensus Sales Estimates and Trends - Constituent Companies



Ordered by USD Market Cap

Ticker Name Current 4wk ∆% 12wk

∆CY12e CY11 CY10 Current 4wk ∆% 12wk

∆CY12e CY11 CY10

Smartphone Vendors

AAPL US Apple Inc 39,186 37,590 0.8 4.7 -4.1 15.8 16.3 38,636 -2.8 -0.5 2.8 -1.1 29.6

005930 KS Samsung Electronics Co Ltd 31,115 9.9 6.9

NOK1V FH Nokia OYJ 9,645 9,718 -0.2 -12.7 0.8 -6.2 -3.3 9,764 0.2 -13.1 0.5 -5.0 4.2

2498 TT HTC Corp 2,188 3,521 -0.7 -12.7 61.0 23.3 61.0 3,864 -6.7 -14.7 9.7 6.9 21.9

066570 KS LG Electronics Inc 5,516 12,296 21.2 21.2 122.9 12.8 3.9

MMI US Motorola Mobility Holdings Inc 3,078 3,196 2.0 2.0 3.8 10.1 5.2 3,273 1.0 0.6 2.4 -2.3 12.9

000063 CH ZTE Corp 2,924 2,912 0.0 -0.4 -37.4 -24.2 4,043 38.8 49.2 31.2

RIM CN Research In Motion Ltd 4,190 3,638 -1.0 -15.9 -13.2 -11.7 3.8 3,488 -1.2 -15.3 -4.1 -15.1 9.1

40978Z CH Huawei Technologies Co Ltd Na

ODM / EMS Partners

2317 TT Hon Hai Precision Industry Co 26,603 29,114 9.4 16.2 24.4 32,003 9.9 3.9 28.9

2038 HK Foxconn International Holdings Na

JBL US Jabil Circuit Inc 4,236 4,311 -0.1 -0.9 1.8 7.6 15.0 4,508 -0.3 -1.2 4.6 1.2 11.7

FLEX US Flextronics International Ltd 6,382 6,096 -9.3 -9.7 -4.5 10.0 10.5 6,524 -8.5 -8.7 7.0 6.6 13.0

4938 TT Pegatron Corp 3,909 5,944 30.7 30.7 52.1 26.5 -9.9 6,757 19.5 19.5 13.7 36.9 -6.3

CLS CN Celestica Inc 1,691 1,706 -2.9 -3.0 0.9 1.6 4.4 1,790 -4.7 -5.0 5.0 0.0 -2.5

COGO US Cogo Group Inc 169 176 6.7 21.9 3.6 28.9 12.3 182 2.3 16.1 3.4 8.8 10.1


005930 KS Samsung Electronics Co Ltd 31,115

QCOM US QUALCOMM Inc 4,943 4,685 -0.1 -1.7 -5.2 -6.4 1.4 4,979 -0.1 -1.2 6.3 13.6 9.3

TXN US Texas Instruments Inc 3,121 3,360 2.2 -1.0 7.7 1.9 9.1 3,594 1.4 -1.4 7.0 0.2 7.0

BRCM US Broadcom Corp 1,827 1,955 1.9 3.4 7.0 -1.1 9.7 2,127 2.0 3.4 8.8 9.0 12.6

2454 TT MediaTek Inc 386

NVDA US NVIDIA Corp 925 1,016 3.6 3.4 9.8 5.7 -19.0 1,109 2.9 2.7 9.2 4.9 4.0

STM IM STMicroelectronics NV 2,010 2,130 -0.2 0.9 6.0 0.9 8.5 2,263 -1.7 -0.7 6.2 -6.0 5.1


AVGO US Avago Technologies Ltd 577 601 -0.4 -0.9 4.2 7.7 6.8 638 -0.5 -0.5 6.1 3.3 4.0

MRVL US Marvell Technology Group Ltd 796 870 1.8 1.8 9.3 11.9 4.8 952 0.8 0.9 9.4 5.9 7.0

NUAN US Nuance Communications Inc 390 437 3.5 3.8 11.9 3.1 0.1 500 6.1 7.1 14.5 11.6 13.4

SWKS US Skyworks Solutions Inc 365 384 0.6 0.6 5.2 9.4 15.7 418 -0.1 0.8 9.1 13.0 13.8

FSL US Freescale Semiconductor Ltd 950 1,003 0.0 -1.5 5.5 2.4 8.6 1,067 0.0 -1.0 6.4 -6.6 3.6

RFMD US RF Micro Devices Inc 188 202 -0.2 -0.2 7.6 0.4 5.0 224 -0.4 -0.5 10.7 13.8 4.4

TQNT US TriQuint Semiconductor Inc 217 178 -21.3 -21.3 -18.0 2.0 14.7 207 -13.5 -13.5 16.6 -5.6 14.2

CSR LN CSR PLC 227 250 1.2 1.3 10.1 18.3 27.6 271 0.2 0.4 8.3 25.5 0.6

ANAD US ANADIGICS Inc 28 27 -11.9 -12.9 -3.3 -18.1 18.7 30 -14.6 -15.7 10.5 4.7 18.6

SQNS US Sequans Communications SA 4 6 -21.0 -21.0 55.8 20.5 63.5 9 -23.1 -23.1 44.4 -14.3 13.4

Memory

6502 JP Toshiba Corp 22,036 16,838 0.8 -3.2 -23.6 -22.6 -25.6 19,861 0.0 -1.3 18.0 25.6 20.6

000660 KS SK Hynix Inc 2,094 2,465 0.0 -12.1 17.7 6.6 15.1 2,576 0.0 -12.5 4.5 -19.0 -0.8

SNDK US SanDisk Corp 1,206 1,029 -0.1 -28.9 -14.7 6.2 8.5 1,254 -0.2 -24.8 21.9 3.0 4.6

MU US Micron Technology Inc 2,009 2,030 -0.4 -4.3 1.1 -5.2 16.7 2,204 -0.4 -1.5 8.5 0.0 9.0

------- Following Quarter (CQ3-2012) -------

Bloomberg Consensus Est QoQ % Sales Bloomberg Consensus Est QoQ % Sales

All Values are in USD millions, Data as of 5/23

Last Qtr

Sales

--------- Next Quarter (CQ2-2012) ---------



EXHIBIT 22: Consensus Sales Estimates and Trends - Constituent Companies (continued)


Ordered by USD Market Cap

Ticker Name Current 4wk ∆% 12wk

∆CY12e CY11 CY10 Current 4wk ∆% 12wk

∆CY12e CY11 CY10

Display

034220 KS LG Display Co Ltd 5,268

2409 TT AU Optronics Corp 2,612 3,196 -2.2 -2.2 22.3 7.4 15.1 3,696 -0.9 -0.9 15.6 -0.8 -2.7

3673 TT TPK Holding Co Ltd Na 1,372 -14.5 -13.1 8.8

3481 TT Chimei Innolux Corp 3,612 4,090 -3.4 -6.6 13.2 -1.4 113.0 4,739 -3.4 -1.5 15.9 1.3 -6.3

CY US Cypress Semiconductor Corp 185 204 0.0 -8.8 10.4 9.4 10.3 230 -0.3 -8.8 12.6 3.8 4.0

2384 TT Wintek Corp 966 778 -19.5 1.0 73.4 600 -22.9 14.9 52.2


6758 JP Sony Corp 20,194 20,134 -0.4 4.2 -0.3 -4.6 -4.6 21,729 1.5 5.9 7.9 10.6 12.0

ALTR US Altera Corp 384 446 -0.3 -2.6 16.2 2.3 16.7 481 0.3 -1.3 7.8 -4.7 12.4

ADI US Analog Devices Inc 675 693 -0.1 -0.2 2.6 -4.2 7.8 721 -0.2 -0.1 4.1 -5.5 6.9

6702 JP Fujitsu Ltd 16,347 12,859 -2.2 -5.6 -21.3 -22.6 -23.4 14,063 -0.4 -1.7 9.4 17.8 12.8

IFX GR Infineon Technologies AG 1,293 1,263 0.9 2.3 -2.3 10.3 4.3 1,306 0.3 2.0 3.4 -2.3 8.1

XLNX US Xilinx Inc 559 576 3.7 4.2 3.0 4.7 12.4 589 2.8 3.0 2.2 -9.8 4.2

MXIM US Maxim Integrated Products Inc 571 606 0.5 0.5 6.2 3.2 11.2 639 0.2 0.6 5.3 1.5 10.6

LLTC US Linear Technology Corp 312 331 0.0 0.8 6.1 1.5 17.6 344 0.0 1.7 3.8 -8.0 6.1

NXPI US NXP Semiconductor NV 978 1,055 4.7 7.1 7.8 3.6 3.1 1,123 5.2 8.0 6.4 -5.4 8.4

6963 JP Rohm Co Ltd 890 947 -1.0 -1.4 6.4 2.9 7.6 1,019 0.1 2.7 7.6 8.9 9.1

LSI US LSI Corp 622 648 4.4 12.4 4.1 5.8 0.2 670 3.0 10.3 3.3 9.2 -4.3

MOLX US Molex Inc 837 886 -1.7 -1.5 5.9 4.5 12.0 924 -1.0 -1.2 4.2 2.4 5.9

ONNN US ON Semiconductor Corp 744 767 -1.8 -1.8 3.1 4.0 6.0 819 -2.0 -2.1 6.7 -0.9 3.0

002241 CH GoerTek Inc 154 233 51.1 42.1 87.8 385 65.0 53.2 20.3

6723 JP Renesas Electronics Corp 2,646 2,525 -5.0 -11.8 -4.6 -24.1 118.2 2,772 1.9 -5.9 9.8 23.3 8.6

3008 TT Largan Precision Co Ltd 117

AVX US AVX Corp 363 373 2.3 2.3 2.6 3.9 7.9 392 1.4 1.4 5.1 -7.3 8.6

3037 TT Unimicron Technology Corp 363 556 -1.8 -2.0 53.0 0.4 15.8 638 0.6 1.8 14.7 11.8 2.3

VSH US Vishay Intertechnology Inc 539 601 3.0 3.0 11.6 2.1 9.6 633 3.0 3.0 5.2 -10.2 -1.0

FCS US Fairchild Semiconductor Intern 352 371 0.0 3.2 5.3 4.9 8.4 392 0.0 2.9 5.5 -6.9 1.2

SLAB US Silicon Laboratories Inc 126 132 1.7 1.5 5.2 5.5 6.2 139 0.5 0.5 5.2 -5.6 -10.7

DLG GR Dialog Semiconductor PLC 166 168 2.3 2.2 1.2 17.9 12.1 189 1.6 1.0 12.2 21.1 16.1

CRUS US Cirrus Logic Inc 111 101 -5.8 -6.0 -8.7 0.9 30.8 131 5.3 7.7 29.3 10.1 22.8

CAVM US Cavium Inc 53 55 -2.8 -11.1 4.3 12.7 19.7 60 -4.3 -12.1 9.5 -5.4 10.7

IRF US International Rectifier Corp 248 265 1.5 2.9 6.7 6.9 9.1 282 0.6 2.4 6.7 -4.6 6.5

8046 TT Nan Ya Printed Circuit Board C 243 267 -3.2 -13.1 10.0 13.2 12.9 312 -5.0 -12.5 16.8 14.0 1.0

ISIL US Intersil Corp 156 166 -1.6 -1.9 6.6 5.1 16.1 180 -1.5 -1.7 8.5 -10.7 -0.3

INVN US InvenSense Inc 33 40 -3.2 -5.5 21.6 -12.2 -29.6 58 -1.6 -1.9 43.6 49.4 64.1

DIOD US Diodes Inc 145 160 2.5 3.0 10.4 5.1 9.0 173 2.5 2.3 8.4 -5.4 9.4

8008 TT LITE-ON IT Corp 318 504 0.0 -6.8 58.5 19.6 -1.5 604 0.0 -4.5 19.7 8.0 -7.1

3406 TT Genius Electronic Optical Co L 102 90 0.0 8.0 -11.1 39.8 5.4 99 0.0 12.3 9.2 20.8 150.7

6285 TT Wistron NeWeb Corp 246 288 17.1 0.6 34.3 325 13.1 15.0 30.2

3042 TT TXC Corp 71


2330 TT TSMC 3,511

GLW US Corning Inc 1,920 2,017 0.1 0.1 5.0 4.3 10.2 2,117 0.2 0.4 5.0 3.5 -6.4

ASML NA ASML Holding NV 1,642 1,549 0.1 3.6 -5.7 10.6 32.6 1,562 0.2 3.8 0.8 -6.3 11.1

AMAT US Applied Materials Inc 2,541 2,437 -0.6 -2.0 -4.1 -2.6 9.7 2,367 -2.8 -5.1 -2.9 -21.7 14.6

8035 JP Tokyo Electron Ltd 2,241 1,641 -3.2 -21.9 -26.8 -19.0 -5.1 1,935 -2.8 -6.6 17.9 18.8 28.6

2303 TT United Microelectronics Corp 800 928 2.9 3.9 15.9 1.7 11.6 1,030 1.4 1.9 11.0 -11.5 9.5

2311 TT Advanced Semiconductor Enginee 544

5214 JP Nippon Electric Glass Co Ltd 926 1,006 0.0 -5.5 8.7 6.9 7.5 1,017 -16.6 -19.9 1.1 -2.8 -1.6

3436 JP Sumco Corp 645 656 1.7 3.3 7.6 756 15.3 8.2 13.8

PANL US Universal Display Corp 13 27 -1.3 12.6 116.9 17.2 98.9 21 -5.5 -28.1 -24.0 93.5 -16.5

AMKR US Amkor Technology Inc 655 688 -0.1 -0.1 5.0 3.4 16.0 795 2.1 2.1 15.6 7.6 6.0

CCMP US Cabot Microelectronics Corp 99 116 0.0 -1.7 16.4 2.0 3.1 120 0.8 -4.8 3.9 -1.9 8.5

STAT SP STATS ChipPAC Ltd 390

HIMX US Himax Technologies Inc 167

LTXC US LTX-Credence Corp 31 43 0.0 0.0 37.9 6.8 30.5 51 0.0 0.0 19.9 -46.1 3.4

All Values are in USD millions, Data as of 5/23

Bloomberg Consensus Est QoQ % Sales

--------- Next Quarter (CQ2-2012) --------- ------- Following Quarter (CQ3-2012) -------

Bloomberg Consensus EstLast Qtr

Sales

QoQ % Sales



Appendix 9: Gross Margin and Days of Inventory Trends by Company

EXHIBIT 23: Gross Margin and DOI Trends


Sources: Bloomberg

Data as of 5/23/12

BNPP Asia

QoQ Chg QoQ Chg Rating

AAPL US � �

005930 KS � � BUY

NOK1V FH � �

2498 TT REDUCE

066570 KS � � REDUCE

MMI US � �

RIM CN � �

2317 TT � � BUY

JBL US � �

FLEX US � �

4938 TT � � BUY

CLS CN � �

COGO US � �

005930 KS � � BUY

QCOM US � �

TXN US � �

BRCM US � �

NVDA US � �

STM IM � �

AVGO US � �

MRVL US � �

SWKS US � �

FSL US � �

RFMD US � �

TQNT US � �

CSR LN � �

ANAD US � �

SQNS US � �

6502 JP � � BUY

000660 KS � � BUY

SNDK US � �

MU US � �

034220 KS � � REDUCE

2409 TT � � REDUCE

3673 TT BUY


CY US � �


Sorted by USD Market Cap within

segment. Companies covered by BNPP

Asia are highlighted in bold.

Gross Margin (GM) Days of Inventory (DOI)

-25 0 25

Apple Inc

Samsung Electronic

Nokia OYJ

HTC Corp

LG Electronics Inc

Motorola Mobility

Research In Motion

Hon Hai Precision

Jabil Circuit Inc

Flextronics Intern

Pegatron Corp

Celestica Inc

Cogo Group Inc

Samsung Electronic

QUALCOMM Inc

Texas Instruments

Broadcom Corp

NVIDIA Corp

STMicroelectronics

Avago Technologies

Marvell Technology

Skyworks Solutions

Freescale Semicond

RF Micro Devices I

TriQuint Semicondu

CSR PLC

ANADIGICS Inc

Sequans Communicat

Toshiba Corp

SK Hynix Inc

SanDisk Corp

Micron Technology

LG Display Co Ltd

AU Optronics Corp

TPK Holding Co Ltd

Chimei Innolux Cor

Cypress Semiconduc

Wintek Corp

% Change in DOI

-25 0 25

Apple Inc

Samsung Electronic

Nokia OYJ

HTC Corp

LG Electronics Inc

Motorola Mobility

Research In Motion

Hon Hai Precision

Jabil Circuit Inc

Flextronics Intern

Pegatron Corp

Celestica Inc

Cogo Group Inc

Samsung Electronic

QUALCOMM Inc

Texas Instruments

Broadcom Corp

NVIDIA Corp

STMicroelectronics

Avago Technologies

Marvell Technology

Skyworks Solutions

Freescale Semicond

RF Micro Devices I

TriQuint Semicondu

CSR PLC

ANADIGICS Inc

Sequans Communicat

Toshiba Corp

SK Hynix Inc

SanDisk Corp

Micron Technology

LG Display Co Ltd

AU Optronics Corp

TPK Holding Co Ltd

Chimei Innolux Cor

Cypress Semiconduc

Wintek Corp

%Change in GM

Last Quarter Prior Quarter Last Quarter Prior Quarter

Memory

Display

ODM / EMS Partners

Baseband / App Proc.

SmartphoneVendors

Other Comm ICs



EXHIBIT 24: Gross Margin and DOI Trends (continued)

Sources: Bloomberg

Data as of 5/23/12

BNPP Asia

QoQ Chg QoQ Chg Rating

6758 JP � �

ALTR US � �

ADI US � �

6702 JP � �

IFX GR � �

XLNX US � �

MXIM US � �

LLTC US � �

NXPI US � �

6963 JP � � HOLD

LSI US � �

MOLX US � �

ONNN US � �

002241 CH � �

6723 JP � �


AVX US � �

3037 TT � �

VSH US � �

FCS US � �

SLAB US � �

DLG GR � �

CRUS US � �

CAVM US � �

IRF US � �


ISIL US � �

DIOD US � �

8008 TT � �

3406 TT � �

6285 TT � �

3042 TT � �

2330 TT � � BUY

GLW US � �

ASML NA � �

AMAT US � �

8035 JP � � BUY

2303 TT � � HOLD

5214 JP � � REDUCE

3436 JP � �

AMKR US � �

CCMP US � �

STAT SP � �

HIMX US � �

LTXC US

Sorted by USD Market Cap within

segment. Companies covered by BNPP

Asia are highlighted in bold.

Gross Margin (GM) Days of Inventory (DOI)

-50.0 0.0 50.0

Sony Corp

Altera Corp

Analog Devices Inc

Fujitsu Ltd

Infineon Technolog

Xilinx Inc

Maxim Integrated P

Linear Technology

NXP Semiconductor

Rohm Co Ltd

LSI Corp

Molex Inc

ON Semiconductor C

GoerTek Inc

Renesas Electronic

Largan Precision C

AVX Corp

Unimicron Technolo

Vishay Intertechno

Fairchild Semicond

Silicon Laboratori

Dialog Semiconduct

Cirrus Logic Inc

Cavium Inc

International Rect

Nan Ya Printed Cir

Intersil Corp

Diodes Inc

LITE-ON IT Corp

Genius Electronic

Wistron NeWeb Corp

TXC Corp

TSMC

Corning Inc

ASML Holding NV

Applied Materials

Tokyo Electron Ltd

United Microelectr

Nippon Electric Gl

Sumco Corp

Amkor Technology I

Cabot Microelectro

STATS ChipPAC Ltd

Himax Technologies

LTX-Credence Corp

% Change in DOI

-25 0 25

Sony Corp

Altera Corp

Analog Devices Inc

Fujitsu Ltd

Infineon Technolog

Xilinx Inc

Maxim Integrated P

Linear Technology

NXP Semiconductor

Rohm Co Ltd

LSI Corp

Molex Inc

ON Semiconductor C

GoerTek Inc

Renesas Electronic

Largan Precision C

AVX Corp

Unimicron Technolo

Vishay Intertechno

Fairchild Semicond

Silicon Laboratori

Dialog Semiconduct

Cirrus Logic Inc

Cavium Inc

International Rect

Nan Ya Printed Cir

Intersil Corp

Diodes Inc

LITE-ON IT Corp

Genius Electronic

Wistron NeWeb Corp

TXC Corp

TSMC

Corning Inc

ASML Holding NV

Applied Materials

Tokyo Electron Ltd

United Microelectr

Nippon Electric Gl

Sumco Corp

Amkor Technology I

Cabot Microelectro

STATS ChipPAC Ltd

Himax Technologies

LTX-Credence Corp

% Change in GM

Last Quarter Prior Quarter Last Quarter Prior Quarter



1

12

2

2



Appendix 10: List of Asian Companies mentioned (BNPP Asia Tech coverage)

EXHIBIT 25: Asian companies mentioned in report

Ticker Name Analyst Rating Currency Price (cob 5/23)

Link to Last Published Report

005930 KS Samsung Electronics Co Ltd Peter YU BUY KRW 1,221,000 Samsung Electronics – LTE fragmentation

2498 TT HTC Corp Laura CHEN REDUCE TWD 422.50 HTC Corp – Challenging outlook continues

066570 K LG Electronics Inc Peter YU REDUCE KRW 65,200 LG Electronics – Trapped in 4G LTE hype

2317 TT Hon Hai Precision Laura CHEN HOLD TWD 87.00 Hon Hai – Back-end loaded 2H recovery

2454 TT MediaTek Inc Laura CHEN BUY TWD 253.00 MEDIATEK - Lift smartphone shipment target

3008 TT Largan Precision Co Ltd Laura CHEN REDUCE TWD 556.00 Largan Precision – Even worse than expected

2330 TT TSMC Szeho NG BUY TWD 79.10 TSMC – Record sales trek unfolding

2303 TT United Microelectronics Corp Szeho NG HOLD TWD 12.75 UMC - Pull more rabbits out? Hard

763 HK ZTE Corp Alen LIN BUY HKD 15.69 Delayed full recovery

Sources: BNP Paribas Asia Technology Research

All prices are as of close of business in May 23, 2012. The equity ratings for the Asian companies

contained in this report were issued by BNP Paribas Securities (Asia) Ltd., a non-US affiliate of BNP

Paribas Securities Corp. Such ratings reflect the global ratings adopted by the BNP Paribas group as

described under “Stock Ratings” in the Disclosures section beginning on page 34. The analysts

responsible for such ratings are not registered / qualified pursuant to NYSE and/or FINRA regulations.

The reports listed above may be distributed in the United States only to U.S. Persons who are “major U.S.

institutional investors” (as such term is defined in Rule 15a-6 under the Securities Exchange Act of 1934,

as amended) and are not intended for the use of any person or entity that is not a “major U.S.

institutional investor”. U.S persons who wish to effect transactions in securities discussed in the reports

referred to above must do so through BNP Paribas Securities Corp., a US-registered broker dealer and

member of FINRA, SIPC, NFA, NYSE and other principal exchanges.

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Disclosures

ANALYST(S) CERTIFICATION

Nitin Kumar, BNP Paribas Securities Corp,+1 212 471 7963, [email protected]. The analyst(s) named in this report certifies that (i) all views expressed in this report accurately reflect the personal view of the analyst(s) with regard to any and all of the subject securities, companies, or issuers mentioned in this report; (ii) no part of the compensation of the analyst(s) was, is, or will be, directly or indirectly, relate to the specific recommendation or views expressed herein; and (iii) is not aware of any other actual or material conflicts of interest concerning any of the subject securities companies, or issuers referenced herein as of the time of this certification

IMPORTANT DISCLOSURES

The disclosure column in the following table lists the important disclosures applicable to each company that has been rated and/or recommended in this report:

Company Ticker Disclosure (as applicable)

QUALCOMM, Inc. QCOM 4,5

Broadcom Corporation BRCM NA

Skyworks Solutions, Inc. SWKS NA

RF Micro Devices, Inc. RFMD NA

BNP Paribas represents that:

1. Within the last 12 months, it has managed or co-managed a public offering for this company, for which it received fees. 2. Within the last 12 months, the company was a client of BNP Paribas and it has received compensation for investment banking

related services. 3. Within the next 3 months, it expects to receive compensation for investment banking services from this company. 4. Within the last 12 months, the company was a client and it has received compensation for non-investment banking, securities-

related services. 5. Within the last 12 months, the company was a client and it has received compensation for non-investment banking, non-

securities-related services. 6. It is a market-maker in securities issued by this company or acts as a corporate broker or sponsor to this company. 7. It beneficially owns 1% or more or the market capitalization of this company. 8. The analyst(s) or an individual who assisted in the preparation of this report (or a member of his/her household) has a financial

interest position in securities issued by this company or derivatives thereof. 9. The analyst (or a member of his/her household) is an officer, director, or advisory board member of this company or has received

compensation from the company. Equity Analysts' Compensation: The equity research analysts responsible for the preparation of this report receive compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues, which include revenues from, among other business units, Global Equities and Commodity Derivatives and Investment Banking.

RECOMMENDATION STRUCTURE

Stock Ratings

Stock ratings are based on absolute upside or downside, which we define as (target price* - current price) / current price.

BUY (B). The upside is 10% or more.

HOLD (H). The upside or downside is less than 10%.

REDUCE (R)/ SELL (S). The downside is 10% or more.

NOT RATED (NR). The company is not rated.

Unless otherwise specified, these recommendations are set with a 12-month horizon. Thus, it is possible that future price volatility may cause a temporary mismatch between upside/downside for a stock based on market price and the formal recommendation.

*In most cases, the target price will equal the analyst's assessment of the current fair value of the stock. However, if the analyst doesn't think the market will reassess the stock over the specified time horizon due to a lack of events or catalysts, then the target price may differ from fair value. In most cases, therefore, our recommendation is an assessment of the mismatch between current market price and our assessment of current fair value.

Industry recommendations

Improving (é): The analyst expects the fundamental conditions of the sector to be positive over the next 12 months

Neutral (çè ): The analyst expects the fundamental conditions of the sector to be maintained over the next 12 months

Deteriorating (ê): The analyst expects the fundamental conditions of the sector to be negative over the next 12 months



RATING DISTRIBUTION (as at April 2, 2012)

Total BNP Paribas coverage universe 595 Investment Banking Relationship (%)

Buy 5 Buy 20.0

Hold 6 Hold 83.3

Reduce 1 Reduce 100.00

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