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Tuesday, October 27, 2026

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@convequity 1 click

Convequity on X

$UMC's nearer-term driver is its 12nm process with $INTC, and our longer-term view is that logic folding could make chips on its existing processes faster and more energy-efficient. UMC reports Q3 earnings tomorrow, while production is targeted for 2027 at Intel's Arizona factories. The partnership combines UMC's foundry experience with Intel's manufacturing capacity, giving UMC access to U.S. production without building an American factory. The immediate attraction is winning customers and expanding its business. Folding replaces long horizontal connections with shorter vertical ones, so signals need less time and energy to move. That could make chips built on established processes more capable without matching the newest transistor nodes. Older processes are, in our view, a more manageable starting point for this prospective thesis: UMC would still need to solve bonding, heat removal and reliable production, but it would not also be introducing a new transistor process.
@StableBread 1 click

Fajasy on X

A solar manufacturer that grew revenue 141.5% in 2025 now trades at 2.0x TTM earnings, after falling 77.5% from its June peak. U.S. customs (CBP) has been detaining its Ethiopian cells since May, and Commerce is deciding whether they should pay the duties on Chinese cells, with a first ruling due around December 14. That company is TOYO Co., Ltd $TOYO, now at $3.83/share. $TOYO’s closest comps are four other listed solar manufacturers selling into the U.S., and all four are down from their 2026 highs too, as of the October 26 close: → First Solar $FSLR: Down 47.2% to $168.15/share. → Canadian Solar $CSIQ: Down 65.2% to $8.85/share. → JinkoSolar $JKS: Down 72.7% to $8.17/share. → T1 Energy $TE: Down 82.4% to $2.12/share. Only $TE has fallen further from its 2026 high. Besides CBP’s detentions and the Ethiopia inquiry, four more overhangs landed after the June peak: 1) Discounted stock sale: $TOYO sold $50M of stock and warrants at $11.00 on June 24, a 14.9% discount to the prior close, and the stock fell 38.8% that day to $7.91. 2) New tariff: An August 6 proclamation set a 15% U.S. tariff on imported solar cells and panels, including $TOYO’s cells from Ethiopia, starting December 4. 3) Guidance dropped: $TOYO didn’t reaffirm its 2026 targets with its H1 results on August 19, when the stock fell 24.2%, and on September 28 only said it expects positive EBITDA for H2 2026. 4) Parent delisted: The Tokyo Stock Exchange delisted Abalance, the Japanese group that controls $TOYO, on September 26. Still, $TOYO is profitable and has net cash: → Earnings: $156.4M of TTM EBITDA and $80.5M of TTM net income. → Cash flow: $61.4M from operations in H1 2026, less $27.8M of capex, for $33.7M of FCF. → Balance sheet: Went from a going-concern warning to positive working capital in six months, with $26.4M of net cash as of June 30. → Texas: Doubled its Texas module capacity to 2 GW and signed ~$240M of binding module contracts since mid-June. → Tax credits: Management expects $140M/year of U.S. manufacturing tax credits at full Texas output, 85.6% of $TOYO’s market cap, and leaves those credits out of its forecasts. $TOYO’s EV of $137.2M is just 0.9x its TTM EBITDA. So is $TOYO a profitable non-Chinese cell maker on sale, or is the market right that Ethiopia’s U.S. sales won’t last?

Investor Letters

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Right-Sizing Memory

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MU $1.1TNVDA $5.2T
Chipstrat 4 clicks

Are Neoclouds Dead?

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Daniel Romero 9 clicks

Reddit: Deep Dive Analysis

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Hated Moats 6 clicks

Qualcomm Inc. (QCOM)

Qualcomm supplies chips for on-device AI agents and data center inference, with Meta and AWS agreements expanding its role across both…

QCOM $195B
SixSigmaCapital: Navigating the Financial Markets 5 clicks
WULF · long

Terawulf INC

TeraWulf is shifting from bitcoin mining toward data centers, seeking a higher-quality and more defensive business model.

WULF $6.3B
Value Investors Club

The Data Center Bridge

Small- and mid-cap data center stocks trade as one despite sharply different funding bridges: 12 of 15 cover fixed costs on signed…

IREN $11BFRMI $1.9B
CV's Substack 16 clicks

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