EQUITY RESEARCH INDUSTRY UPDATE January 22, 2021 Daily Chip Clips SUMMARY TECHNOLOGY/SEMICONDUCTORS & COMPONENTS ■ EUV Equipment to Boost ASML Sales in 2021 (Digitimes) ■ Qualcomm Rolls Out New 7nm 5G Smartphone Chip (EE Times) ■ MediaTek Launches 6nm 5G SoC Chips (Digitimes) ■ Nehalem Lead Architect Returns to Intel, Inspired by New CEO (Tom's Hardware) KEY POINTS ■ With TSMC and Samsung Electronics stepping up the development of their sub-5nm process technologies, ASML will continue to see strong extreme ultraviolet (EUV) lithography equipment sales boost its overall revenue this year, according to market sources. TSMC is expected to acquire about 18 sets of EUV equipment in 2021, said the sources, adding that Samsung and Intel will also make further purchases of such tools to advance their manufacturing technologies. ■ Qualcomm has rolled out its new Snapdragon 870 series to further enhance its 5G smartphone chip lineup. The new 5G chip is built using TSMC's 7nm process technology. The 870 5G mobile platform is a follow-on to the flagship Snapdragon 865 Plus, which features a Qualcomm Kryo 585 CPU prime core clock speed of up to 3.2 GHz. ■ MediaTek has unveiled its new Dimensity 1200 and 1100 5G smartphone SoC series built using 6nm process technology. MediaTek disclosed that the new Dimensity 1200 has already received TUV Rheinland certification for its 5G performance, with tests covering 72 real-world scenarios. The certification verifies that the chipset provides reliable, high-performance 5G connectivity and offers users high-quality 5G experiences across a wide variety of scenarios, the chipmaker said. ■ In a sign that Intel's efforts to rebuild its engineering corps might be swift under the new incoming CEO, Glenn Hinton, the lead architect of Intel's Nehalem processors and several other programs, announced that he is returning to the company after a three-year retirement. In a LinkedIn post announcing his decision, Hinton cited the return of Pat Gelsinger, Intel's new CEO, as a prime motivator for rejoining the company. Rick Schafer Andrew Hummel, CFA 720-554-1119 312-360-5946 [email protected] [email protected] Wei Mok 212-667-8387 [email protected] Disseminated: January 22, 2021 00:30 EST; Produced: January 21, 2021 For analyst certification and important disclosures, see the Disclosure 16:02 EST Appendix. Oppenheimer & Co Inc. 85 Broad Street, New York, NY 10004 Tel: 800-221-5588 Fax: 212-667-8229 TECHNOLOGY / SEMICONDUCTORS & COMPONENTS Headlines EUV Equipment to Boost ASML Sales in 2021 (Digitimes) With TSMC and Samsung Electronics stepping up the development of their sub-5nm process technologies, ASML will continue to see strong extreme ultraviolet (EUV) lithography equipment sales boost its overall revenue this year, according to market sources. TSMC is expected to acquire about 18 sets of EUV equipment in 2021, said the sources, adding that Samsung and Intel will also make further purchases of such tools to advance their manufacturing technologies. Reference Link Qualcomm Rolls Out New 7nm 5G Smartphone Chip (EE Times) Qualcomm has rolled out its new Snapdragon 870 series to further enhance its 5G smartphone chip lineup. The new 5G chip is built using TSMC's 7nm process technology. The 870 5G mobile platform is a follow-on to the flagship Snapdragon 865 Plus, which features a Qualcomm Kryo 585 CPU prime core clock speed of up to 3.2 GHz. The new Snapdragon 870 is designed to deliver increased performance across the board for geared-up gameplay with Elite Gaming experiences, global 5G sub-6GHz and mmWave, and intuitive AI, said Qualcomm. Reference Link MediaTek Launches 6nm 5G SoC Chips (Digitimes) MediaTek has unveiled its new Dimensity 1200 and 1100 5G smartphone SoC series built using 6nm process technology. MediaTek disclosed that the new Dimensity 1200 has already received TUV Rheinland certification for its 5G performance, with tests covering 72 real-world scenarios. The certification verifies that the chipset provides reliable, high-performance 5G connectivity and offers users high-quality 5G experiences across a wide variety of scenarios, the chipmaker said. Reference Link Nehalem Lead Architect Returns to Intel, Inspired by New CEO (Tom's Hardware) In a sign that Intel's efforts to rebuild its engineering corps might be swift under the new incoming CEO, Glenn Hinton, the lead architect of Intel's Nehalem processors and several other programs, announced that he is returning to the company after a three-year retirement. In a LinkedIn post announcing his decision, Hinton cited the return of Pat Gelsinger, Intel's new CEO, as a prime motivator for rejoining the company. Hinton also remarked that he will be working on a high performance CPU project, and "If it wasn't a fun project I wouldn't have come back. As you know, retirement is pretty darn nice." Reference Link 2 TECHNOLOGY / SEMICONDUCTORS & COMPONENTS Stock prices of other companies mentioned in this report (as of 1/21/21): Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM, $134.29, Not Covered) ASML Holding NV ADR (ASML, $569.61, Not Covered) MediaTek Inc (2454-TW, NT$934, Not Covered) Samsung Electronics Co., Ltd. (005930-KR, KRW88100, Not Covered) 3 TECHNOLOGY / SEMICONDUCTORS & COMPONENTS Disclosure Appendix Oppenheimer & Co. Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. 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(INTC - NASDAQ, $62.46, PERFORM) Rating and Price Target History for: QUALCOMM Incorporated (QCOM) as of 01-20-2021 180 160 140 120 100 80 60 40 2018 2019 2020 2021 Created by: BlueMatrix 4 TECHNOLOGY / SEMICONDUCTORS & COMPONENTS Rating and Price Target History for: Intel Corp. (INTC) as of 01-20-2021 70 65 60 55 50 45 40 2018 2019 2020 2021 Created by: BlueMatrix All price targets displayed in the chart above are for a 12- to- 18-month period. Prior to March 30, 2004, Oppenheimer & Co. Inc. used 6-, 12-, 12- to 18-, and 12- to 24-month price targets and ranges. For more information about target price histories, please write to Oppenheimer & Co. Inc., 85 Broad Street, New York, NY 10004, Attention: Equity Research Department, Business Manager. Oppenheimer & Co. Inc. Rating System as of January 14th, 2008: Outperform(O) - Stock expected to outperform the S&P 500 within the next 12-18 months. Perform (P) - Stock expected to perform in line with the S&P 500 within the next 12-18 months. Underperform (U) - Stock expected to underperform the S&P 500 within the next 12-18 months. Not Rated (NR) - Oppenheimer & Co. Inc. does not maintain coverage of the stock or is restricted from doing so due to a potential conflict of interest. Oppenheimer & Co. Inc. Rating System prior to January 14th, 2008: Buy - anticipates appreciation of 10% or more within the next 12 months, and/or a total return of 10% including dividend payments, and/or the ability of the shares to perform better than the leading stock market averages or stocks within its particular industry sector. Neutral - anticipates that the shares will trade at or near their current price and generally in line with the leading market averages due to a perceived absence of strong dynamics that would cause volatility either to the upside or downside, and/ or will perform less well than higher rated companies within its peer group. Our readers should be aware that when a rating change occurs to Neutral from Buy, aggressive trading accounts might decide to liquidate their positions to employ the funds elsewhere. Sell - anticipates that the shares will depreciate 10% or more in price within the next 12 months, due to fundamental weakness perceived in the company or for valuation reasons, or are expected to perform significantly worse than equities within the peer group. 5 TECHNOLOGY / SEMICONDUCTORS & COMPONENTS Distribution of Ratings/IB Services Firmwide IB Serv/Past 12 Mos.