DISCLOSUREAPPENDIXATTHEBACKOFTHISREPORTCONTAINSIMPORTANTDISCLOSURES,ANALYSTCERTIFICATIONS,LEGALENTITYDISCLOSUREANDTHESTATUSOFNON-USANALYSTS.USDisclosure:CreditSuissedoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.12September2019AsiaPacific/JapanEquityResearchTechnologyTechnologysectorResearchAnalystsAkinoriKanemoto81345507363akinori.kanemoto@credit-suisse.comHideyukiMaekawa81345509723hideyuki.maekawa@credit-suisse.comMikaNishimura81345507369mika.nishimura@credit-suisse.comYoshiyasuTakemura81345507358yoshiyasu.takemura@credit-suisse.comSayakaShimonishi81345507364sayaka.shimonishi@credit-suisse.comDaisukeTanimoto81345507371daisuke.tanimoto@credit-suisse.comCOMMENTAsiafeedback(Hardware):“5Gfanfare”in2020albeitshort-termadjustmentriskatJan–Mar■Summary:WeconductedourperiodicsurveyoftheKorean,TaiwaneseandChinesetechmarketsinlateAug–earlySep.Asinourprevioussurvey,enddemandshowsnosignofpickingup.Despiteongoinginventoryadjustments,chieflyinGreaterChina,channelinventoriesofautomotiveapplicationsremainaburden,butweseeimprovementinMLCCsandotherIT-relatedproducts.Ontheotherhand,weexpectarushinsmartphone,PC,TV,andotherhardwaredemandaheadofUStariffs,andmakersarelikelytoexpeditecomponentprocurementandfinished-productoutputinpreparationfortheLunarNewYear.AddintheriskofLTE-smartphoneoutputadjustmentsbefore5Grollout,andweseeariskofoutputadjustmentsheadingintoJan–Mar.Thatsaid,expectationsfor5Garerisingsharplyas2020approaches;2020productionplanspointtototal5Gchipsetoutputover500mnunits,andtheindustryseemsincreasinglyupbeatontheoutlookfor5Gsmartphones.■Focalpointsinhardware&devices:(1)Makerstarget5G-chipsetoutputof500mnunitsin2020,and5Gsmartphoneoutputislikelytoreach250–300mnunits—aboonforRFfrontends;(2)ChinesesmartphoneoutputplanspointtoonlyaslightQoQdeclineinOct–De...
