OREANDA-NEWS. May 21, 2015. Semiconductors is the fastest-growing segment of Singapore’s electronics cluster, which contributes at least a quarter of the manufacturing industry’s total value-add.

The city-state – the second-largest city in the world in terms of wafer fabrication capacity – is home to 14 wafer fabrication plants, 20 assembly and test operations and about 40 integrated circuit (IC) design centres, according to Singapore’s Economic Development Board – click here. Broadcom, Infineon, Micron, STMicroelectronics and Qualcomm are among key semiconductor companies that have established a significant presence in Singapore.

Semiconductors and Semiconductor Equipment is one of 14 sub-industries under the Information Technology (IT) Sector, according to the Global Industry Classification Standard (GICS®).

The 13 semiconductor-related stocks listed on the Singapore Exchange (SGX) have a combined market capitalisation of S\\$1.9 billion. They averaged a 40.6% price gain in the year-to-date, with dividend-adjusted total returns rising to 43.1%.

The 10 best-performing stocks in the sector averaged a 56.2% price gain in the year thus far, with dividends bringing total returns to an average of 59.5%.

The five best performers in the period were Manufacturing Integration Technology (+231%), Advanced Systems Automation (+100%), Global Testing Corporation (+60%), Avi-Tech Electronics (+47%) and Smartflex Holdings (+37%).

Source: S&P (Data as of 20 May 2015)

Manufacturing Integration Technology

Manufacturing Integration Technology is an investment holding company that designs, develops, manufactures, and distributes automated equipment for the semiconductor industry worldwide. The company operates through two segments, Manufacturing and Distribution. The company was founded in 1989 and is based in Singapore. Manufacturing Integration Technology has a market capitalisation of S\\$62.5 million and the stock trades at a price-earnings ratio of 5.4.

The company reported an 105.3% year on year increase in revenue to S\\$64.3 million in the 2014 financial year (which ended 31 December 2014). This growth was attributable to all-round improvements in the semiconductor, solar and contract equipment manufacturing business segments (click here to view).

Advanced Systems Automation

Advanced Systems Automation is an investment holding company that engages in the design, manufacture, and sale of automatic molding machines and other back-ended assembly equipment for the semiconductor industry in Singapore and internationally. It operates through two segments, Equipment and Equipment Contract Manufacturing Services. The company was founded in 1978 and is based in Singapore. Advanced Systems Automation has a market capitalisation of S\\$20.6 million.

The company reported a 13.0% year on year decrease in revenue to S\\$6.2 million in the 1Q2015 (which ended 31 March 2015). This was due to lower demand from customers in the Equipment Contract Manufacturing Services business (click here to view).

Global Testing Corporation

Global Testing Corporation is an investment holding company that provides testing services to the semiconductor industry in Singapore, the United States, Taiwan, Malaysia, Canada, and internationally. It offers various testing services, such as wafer sorting and final testing for logic and mixed signal ICs used in consumer electronics and communication devices. The company was founded in 1998 and is headquartered in Hsin-Chu, Taiwan. Global Testing Corporation has a market capitalisation of S\\$98.3 million and the stock trades at a price-earnings ratio of 20.1.

The company reported a 6.0% year on year decrease in revenue to US\\$8.5 million in the 1Q2015 (which ended 31 March 2015). This was mainly due to the decrease in the semiconductor/3C industries’ demand (click here to view).

Avi-Tech Electronics

Avi-Tech Electronics provides burn-in, engineering, and manufacturing services for semiconductor and electronics industries. The company operates in Singapore, Malaysia, the United States, Germany, the Philippines, Thailand, Taiwan, and China. Avi-Tech Electronics was incorporated in 1981 and is headquartered in Singapore. Avi-Tech Electronics has a market capitalisation of S\\$36.0 million and the stock trades at a price-earnings ratio of 11.0.

The company reported a 5.8% year on year increase in revenue to S\\$6.1 million in the 3Q2014/15 (which ended 31 March 2015). This was mainly attributable to the growth and contribution of the Burn-in Boards and Board Manufacturing business segments (click here to view).

Smartflex Holdings

Smartflex Holdings is an investment holding company that is engaged in the development, assembly, and testing of smart card IC modules. The company provides IC module assembly and testing services for contact and dual interface smart cards, which are used in the banking and finance, pay TV, telecommunications, and transportation industries. The company was founded in 2003 and is based in Singapore. Smartflex Holdings has a market capitalisation of S\\$29.7 million and the stock trades at a price-earnings ratio of 14.7

The company reported a 10.2% increase in revenue from the 2013 financial year to US\\$25.4 million in the 2014 financial year (which ended 31 December 2014). This was mainly due to growth in customers’ demand and securing more orders in the Banking and Dual Interface segments (click here to view).

CDW Holding

CDW Holding produces and supplies precision components for mobile communication equipment, gamebox entertainment equipment, consumer and information technology equipment, office equipment, and electrical appliances. The company operates through three segments, LCD Backlight Units, Office Automation, and LCD Parts and Accessories. CDW Holding Limited was founded in 1991 and is headquartered in Shatin, Hong Kong. CDW Holding has a market capitalisation of S\\$104.5 million and the stock trades at a price-earnings ratio of 9.2.

The company reported a 10.0% year on year increase in revenue to US\\$38.2 million in the 1Q2015 (which ended 31 March 2015). This was mainly attributable to the stable supply of light guide panels, a critical component in the LCD Backlight Units segment, which enabled the Group to catch up backlog orders (click here to view).

Ellipsiz

Ellipsiz is an investment holding company that provides probe card, distribution, and service solutions to the semiconductor and electronics manufacturing industries. The company also provides technology services, including technology transfer, training, technical, and consultancy services, as well as expert advice and technical assistance. It sells its products and services to customers in Singapore, Malaysia, China, Thailand, the Philippines, Taiwan R.O.C., Vietnam, India, Japan, Europe, and the United States. The company was founded in 1992 and is headquartered in Singapore. Ellipsiz has a market capitalisation of S\\$68.0 million and the stock trades at a price-earnings ratio of 6.9.

The company reported a 22.0% year on year decrease in revenue to S\\$25.6 million in the 3Q2014/15 (which ended 31 March 2015). This was mainly attributable to the decrease in revenue from Distribution and Services (click here to view).

Micro-Mechanics (Holdings)

Micro-Mechanics (Holdings) designs, manufactures, and markets high precision tools, parts, and assemblies for the semiconductor, medical, aerospace, and other high technology industries. The company operates in six segments: Singapore, Malaysia, Philippines, Thailand, USA, and China. Micro-Mechanics (Holdings) was founded in 1983 and is based in Singapore. Micro-Mechanics (Holdings) has a market capitalisation of S\\$105.0 million and the stock trades at a price-earnings ratio of 9.0.

The company reported a 26.0% year on year increase in revenue to S\\$13.4 million in the 3Q2014/15 (which ended 31 March 2015). This was mainly due to higher sales of the company’s semiconductor tooling business (click here to view).

UMS Holdings

UMS Holdings is an investment holding company that manufactures high precision front-end semiconductor components; and offers electromechanical assembly and final testing services. It operates through two segments, Semiconductor and Contract Equipment Manufacturing (CEM). It primarily operates in Singapore and the United States, as well as in the People’s Republic of China, Poland, Malaysia, Taiwan, and South Korea. UMS Holdings was incorporated in 2001 and is headquartered in Singapore. UMS Holdings has a market capitalisation of S\\$233.9 million and the stock trades at a price-earnings ratio of 9.7.

The company reported a 20.0% year on year decrease in revenue to S\\$27.5 million in the 1Q2015 (which ended 31 March 2015). This was mainly due to a change in the major customer orders in the current quarter (click here to view).

ASTI Holdings

ASTI Holdings is an investment holding company that researches, designs, develops, manufactures, and markets semiconductor equipment. It operates in two segments, Back-end Equipment Solutions and Technologies; and Distribution & Services. The company was incorporated in 1999 and is based in Singapore. ASTI Holdings has a market capitalisation of S\\$35.4 million and the stock trades at a price-earnings ratio of 3.6.

The company reported a 25.6% year on year increase in revenue to S\\$33.7 million in the 1Q2015 (which ended 31 March 2015). The increase in revenue was due to higher demand from the equipment business (click here to view).

STATS ChipPAC

STATS ChipPAC, together with its subsidiaries, provides semiconductor packaging design, bump, probe, assembly, test, and distribution services for communications, digital consumer, and computing market applications. The company markets its services through direct sales force in the United States, South Korea, China, Singapore, Taiwan, and Switzerland. STATS ChipPAC was founded in 1994 and is headquartered in Singapore. STATS ChipPAC has a market capitalisation of S\\$1,123.1 million.

The company reported a 1.5% year on year increase in revenue to S\\$371.1 million in the 1Q2015 (which ended 31 March 2015). This was mainly due to the strength in demand for emerging market handsets and product ramps for new high performance smartphones and wearable devices (click here to view).

CPH

CPH is an investment holding company that primarily engages in the manufacture and sale of printed circuit boards (PCBs). It operates in two segments, Printed Circuit Boards, and Food and Beverage. It operates in Singapore, Japan, the United States, and Europe. The company serves customers in various industries, such as telecommunications, automotive, industrial equipment and instruments, consumer electronics, PCs and PC peripherals, and healthcare, as well as government and defense industries. CPH was founded in 1981 and is based in Singapore. CPH has a market capitalisation of S\\$6.1 million.

AEM Holdings

AEM Holdings is an investment holding company that provides engineering solutions in equipment systems, substrates, and precision components. The company offers its products through a network of sales offices, associates, and distributors in Asia, Europe, and the United States. AEM Holdings was established in 2000 and is headquartered in Singapore. AEM Holdings has a market capitalisation of S\\$18.2 million.

The company reported a 9.7% year on year decrease in revenue to S\\$9.2 million in the 1Q2015 (which ended 31 March 2015). This was mainly due to lower sales from the company’s Equipment Systems business (click here to view).