Win Semi Earnings: Fair Value Slashed by 36% After Downbeat Guidance and Qorvo’s Ugly Readacross

We slashed our fair value estimate for narrow-moat Win Semiconductors to TWD 130 from TWD 202 as management alluded to weak Android smartphone demand in coming quarters. At the same time, fellow radio frequency chip supplier Qorvo painted a damning picture of the structural Android phone outlook. This leads us to no longer assume the cluster in Kaohsiung will resume work before 2028 in the long term, and lower gross margins from a worse product mix. Although Win Semi’s shares are down more than 20% year to date, we think they are now fairly valued as a shift to low-end Android phones is less favorable for the company. Nevertheless, growth is still likely thanks to autonomous driving demand.