Stats Chippac / UMS

Stats Chippac / UMS: Key Clients TSMC, which is the world’s largest semi-conductor foundry, announced that it had hit another record sales for June, +24.3% y/y at US$1.8B in June, with analysts attributing the increase to strong demand for chips for smartphones and tablets. The grp expects the momentum to extend into the current quarter. We note that latest development could have a positive read through for Stats Chippac, and UMS, who speciailizes in semi-conductor components. (OSKDMG recently initiated coverage on UMS last mth, where they see UMSH as a proxy to the revival. Like its close partnership with industry leader Applied Materials and stable cash flow that provides attractive sustainable dividends of ~10%.