Daiwa analyst Rick Hsu upgraded UMC to Buy from Outperform with a price target of NT$62, up from NT$48. The analyst sees an increased probability of immersion deep ultraviolet exports to China being banned, hindering China’s mature 12" development. In the short run, the firm expects UMC to potentially benefit the most at the expense of SMIC in the 28/22nm foundry. It recommends a pair trade of long UMC, short SMIC.
Published first on TheFly
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