瑞信-美股-半导体行业-10月sia分析报告 21页

'4December2017Americas/UnitedStatesEquityResearchSemiconductorDevicesSemiconductorsResearchAnalystsMONTHLYJohnW.Pitzer2125384610john.pitzer@credit-suisse.comOctoberSIASupportsAbove-SeasonalC4QStevenJozkowski2123252685BottomLine.SIAreportedOctoberRevof$37.1bn,down3.2%m/m,ABOVEsteven.r.jozkowski@credit-suisse.comseasonalofdown9.1%m/m.OctRevgrew21.9%y/y,are-accelerationfromSeptember(+19.4%y/y)butbelowtheMaypeakof(+25.0%y/y).ExcludingMemory,SemiRevgrew8.8%y/yinOctober,are-accelerationfromSeptember(+6.3%y/y)butbelowtheMaypeak(+14.8%y/y).C4QRevex-memoryistrackingup1.2%q/q,ABOVEseasonalofflatq/qandcurrentStreetestimatesofup0.7%q/q.BetterOctRevwasdrivenequallybyunitsandASPs–specificallyASPswereup5%m/m,9%y/y;ex-MemoryASPsup5%m/m,down3%y/y–y/ycomparestoup10%anddown2%respectivelyinSept.Ex-MemoryASPshaveonlybeenflatfortwomonths(Dec/Jun)withaverageASPsdown4%y/yforthelast17monthsofthisupturn.■OctoberSegmentResults:OctoberupsidewasledbyMicro(15%ofRev)onabove-seasonalunitsandASPs–Memory,LogicandAnalogalsogrewABOVEseasonal,whileDiscrete/Opto/Sensors(16%ofRev)grewmostlyIN-LINEwithseasonal.SpecifictoMemory(32%ofRev),DRAMbits/ASPswere+8%/+51%y/yvs.+17%/+60%inSept,andNANDbits/ASPswere+32%/+17%y/yvs.+20%/+19%inSept.■Y/YRevandUnitGrowthRe-Accelerated:OctSemiRevgrew21.9%y/y,anaccelerationfromSeptup19.4%y/y–albeitstillbelowpeakMayRevup25.0%y/y,andwellbelowmedianpeakmonthlyy/yRevgrowthinthelast6cyclesof42%y/y.OctoberICunitsgrew11.4%y/y,anaccelerationfrom8.1%inSeptwellbutbelowtheMaypeakof19.6%y/yandmedianpeakmonthlyy/yunitgrowthinthelast6cyclesof35%y/y.■FullYearUpdate:Withmorethan80%oftheyearnowcomplete,SemiRevistrackingto$410bn,up21%y/yvs.ourforecastof20%andamarkedimprovementfrom2015/2016of-0.2%/1.1%.Ex-memory,SemiRevistrackingto$286bn,up9%y/yin-linewithourforecastof9%andamarkedimprovementfrom2015/2016of0.5%/1.6%.WearecurrentlyestimatingCY18Revgrowthof7%y/ywithMemory,5%y/ywithoutMemory–theswingfactorforCY18willbeASPs.UnlikepriorpeakswecontinuetoexpectONLYaslowingofgrowthtomid-singledigitsandNOToutrightcontraction–specificallyseasonalgrowthfromherewouldimplyadecelerationtomid-singledigitsbymid-CY18.Despitenear-termvolatilityinpartdrivenbygrowingconcernsthatbetteravailabilityofiPhoneXhasoccurredsoonerthanexpected,longertermfundamentaldriversremainunchanged–SemisarepoisedtooutgrowGDP,SCEispoisedtooutgrowSemis.Wecontinuetohaveadefensivecyclicalviewwhilestillmaintaininganoffensivestructuralstance–seculardriverscontinuetosupportare-ratingwhichtodatehasnotoccurredwithSemistocksstilltradingata~20%discounttotheSPXonEV/FCF.DISCLOSUREAPPENDIXATTHEBACKOFTHISREPORTCONTAINSIMPORTANTDISCLOSURES,ANALYSTCERTIFICATIONS,LEGALENTITYDISCLOSUREANDTHESTATUSOFNON-USANALYSTS.USDisclosure:CreditSuissedoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision. 4December2017MonthlyRevenue,Unit,andASPTrendsFigure1:IC"sEx-MemoryRevenueChangeY/Y30%Y/YRevenues(3MMA)Semiconductors10%-10%0111222333444555666777-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1tceJuceJuceJuceJuceJuceJuceJucOFOFOFOFOFOFOFOSource:SIA,Companydata,CreditSuisseestimatesFigure2:IC"sEx-MemoryUnitChangeY/Y30%Y/YUnits(3MMA)Semiconductors20%10%0%-10%01111222233334444555566667777-1t-1-1r1l--1t-1-1r1l--1t-1-1r1l--1t-1-1r1l--1t-1-1r1l--1t-1-1r1l--1t-1-1r1l--1tcnpJucnpJucnpJucnpJucnpJucnpJucnpJucOJaAOJaAOJaAOJaAOJaAOJaAOJaAOSource:SIA,Companydata,CreditSuisseestimatesFigure3:IC"sEx-MemoryASPsChangeY/Y10%Y/YASP(3MMA)Semiconductors5%0%-5%-10%-15%0111222333444555666777-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1tceJuceJuceJuceJuceJuceJuceJucOFOFOFOFOFOFOFOSource:SIA,Companydata,CreditSuisseestimatesSemiconductors2 4December2017MonthlyAnalysis:SummaryofFiguresOctoberSemiconductorRevAboveSeasonalM/M.SIAreportedOctoberRevof$37.1bn,-3.2%m/m,~590bpsABOVEseasonal.OctoberRevaboveseasonalfollowsSeptemberRevwhichwas620bpsbelowseasonal(+6.6%m/mvs.seasonal+12.8%m/m),AugustRevwhichwas480bpsaboveseasonal(+6.8%m/mvs.seasonal+2.0%m/m),andJulyRevwhichwas280bpsaboveseasonal(-4.7%m/mvs.seasonal-7.5%m/m).ByproductsegmentMicro(~1220bpsaboveseasonal)wasthebestperformerrelativetoseasonalm/m,followedbyMemory(~760bpsaboveseasonal),Logic(~370bpsaboveseasonal),Analog(~160bpsaboveseasonal),andDisc.,Opto&Sensors(~60bpsaboveseasonal).Ona3MMAbasis,OctoberRev+3.2%m/mwasABOVEseasonalof+1.7%m/monstrongerthanseasonalASPs–specifically,ASPswere+3.1%m/mvs.seasonalof+2.0%m/m,andunitswere+0.1%m/mvs.seasonalof-0.1%m/m.Figure4:ComprehensiveSummary–SemiconductorIndustry,SingleMonthBasisSemiconductorsICsJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue($bn)$33.6$35.9$38.3$37.1Revenue($bn)$28.1$30.1$31.9$31.1Units(bn)79.180.286.179.3Units(bn)23.624.827.024.1ASP$0.425$0.448$0.445$0.467ASP$1.190$1.214$1.180$1.291Y/Y%changeY/Y%changeRevenue22.7%24.7%19.4%21.9%Revenue25.3%27.4%22.1%24.2%Units18.4%15.3%8.1%11.4%Units17.8%17.7%7.9%11.8%ASP3.7%8.2%10.4%9.4%ASP6.3%8.3%13.1%11.1%M/M%changeM/M%changeRevenue-4.7%6.8%6.6%-3.2%Revenue-4.4%7.1%6.2%-2.7%Units-3.9%1.3%7.3%-7.9%Units-6.5%5.0%9.2%-11.0%ASP-0.9%5.4%-0.7%4.9%ASP2.2%2.0%-2.8%9.4%Discretes,Opto,SensorsAnalogJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue($bn)$5.6$5.9$6.4$6.0Revenue($bn)$4.4$4.5$4.9$4.6Units(bn)55.555.459.055.2Units(bn)12.713.515.013.0ASP$0.100$0.106$0.108$0.108ASP$0.342$0.331$0.329$0.353Y/Y%changeY/Y%changeRevenue11.1%12.5%7.2%11.2%Revenue10.8%10.4%5.9%7.8%Units18.7%14.2%8.2%11.2%Units23.1%20.9%9.5%13.1%ASP-6.4%-1.5%-0.9%0.0%ASP-10.0%-8.6%-3.2%-4.6%M/M%changeM/M%changeRevenue-6.6%5.4%8.2%-5.8%Revenue-6.2%2.4%11.1%-7.7%Units-2.8%-0.2%6.5%-6.4%Units-7.9%5.8%11.7%-13.9%ASP-3.8%5.6%1.6%0.7%ASP1.8%-3.2%-0.6%7.3%Source:SIA,Companydata,CreditSuisseestimatesDisc,Opto&SensorsM/MSegmentHighlights.Disc,Opto&SensorRev(~16%ofoverallSemiRev)was-5.8%m/m,modestlyaboveseasonalof-6.4%m/m–drivenbyabetterthanseasonaldeclineinunits(-6.4%m/mvs.seasonal-9.0%m/m)offsetbyamodestlyworsethanseasonalincreaseinASPs(+0.7%m/mvs.seasonal+1.5%m/m).AnalogM/MSegmentHighlights.AnalogRev(~12%ofoverallSemiRev)was-7.7%m/m,ABOVEseasonalof-9.3%m/m–drivenbyabetterthanseasonaldeclineinunitsSemiconductors3 4December2017(-13.9%m/mvs.seasonalof-15.1%m/m)partiallyoffsetbymodestlyworsethanseasonalASPs(+7.2%m/mvs,seasonal+8.0%m/m).MicroM/MSegmentHighlights.MicroRev(~15%ofoverallSemiRev)was-4.4%m/m,BETTERthanseasonalof-16.6%m/m–drivenbybetterunits(-8.2%m/mvs.seasonalof-18.9%m/m)andASPs(+4.1%m/mvs.seasonal+0.9%m/m).LogicM/MSegmentHighlights.LogicRev(~25%ofoverallSemiRev)was-0.2%m/m,ABOVEseasonalof-3.9%m/m.Betterthanseasonalresultsweredrivenbystrongerunits(-3.9%m/mvs.seasonal-9.3%m/m)partiallyoffsetbyweakerthanseasonalASPs(+3.9%m/mvs.seasonal+6.0%m/m).MemoryM/MSegmentHighlights.MemoryRev(~32%ofoverallSemiRev)was-1.7%m/m,BETTERthanseasonalof-9.3%m/m.BetterthanseasonalresultsweredrivenbystrongerASPs(+11.7%m/mvs.seasonal+1.3%m/m),withunitsroughlyin-line(-12.0%m/mvs.seasonal-11.3%m/m)–notey/ygrowthintotalMemoryASPsdeceleratedto+66%inOctoberfrom+69%inSept.Specifically,DRAMbits/ASPswere+8%/+51%y/yvs.+17%/+60%inSept,andNANDbits/ASPswere+32%/+17%y/yvs.+20%/+19%inSept.C4Q17and2017RevenueGrowthC4Q17RevTrackingABOVESeasonal;FullYear2017RevUp~20%Y/Y.C4Q17Revistrackingup3.9%q/q,ABOVEseasonalofdown0.4%q/qandcurrentbottom-upStreetestimatesofup0.8%q/q.Ex-Memory,C4Qistrackingup1.2%q/q,ABOVEseasonalofdown0.3%andbottom-upStreetestimatesofup0.7%q/q.Onay/ybasis,C4QRevistrackingup20.5%y/y(up8.1%ex-Memory)vs.up22.2%y/y(up8.9%ex-Memory)inC3Q.Withmorethan80%oftheyearnowcomplete,SemiRevistrackingto$410bn,up21%y/yvs.ourforecastof20%andamarkedimprovementfrom2015/2016of-0.2%/1.1%.Ex-memory,SemiRevistrackingto$286bn,up9%y/yin-linewithourforecastof~9%andamarkedimprovementfrom2015/2016of0.5%/1.6%.WearecurrentlyestimatingCY18Revgrowthof7%y/ywithMemory,5%y/ywithoutMemory–theswingfactorforCY18willbeASPs.Despitecyclicaltailwindsontracktodissipatebyyear-end,weexpectONLYaslowingofgrowthtomid-singledigitandNOToutrightcontraction.Wecontinuetoseeseculardriverssupportingare-ratingwhichtodatehasnotoccurred.Specifically,slowingsupplygrowth,risingbarrierstoentry,consolidation,andademandcurvebecomingincreasinglyleveredtoaDataDrivenEconomyshoulddriveSemiRevgrowthfromGDPminustoGDPplus.Semistocksstilltradeata~20%discounttoSPXonEV/FCF.Semiconductors4 4December2017Revenue,Units,andASPsFigure5:SummaryofMonthlyGrowthData(3MMAand1-Month)TOTALSemiconductorsTOTALSemiconductors3MMMA/3MMMA%ChangeM/M%ChangeJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue3.1%4.0%2.8%3.2%Revenue-4.7%6.8%6.6%-3.2%)Units2.6%2.1%1.5%0.1%)Units-3.9%1.3%7.3%-7.9%MASPs0.5%1.8%1.3%3.1%M/ASPs-0.9%5.4%-0.7%4.9%/MSeasonalMSeasonal(Revenue2.5%1.6%2.2%1.7%(hRevenue-7.5%2.0%12.8%-9.1%AUnits1.8%0.9%1.5%-0.1%tUnits-8.0%-1.8%12.3%-10.6%nMASPs0.3%0.5%1.5%2.0%oASPs1.2%1.0%2.7%2.5%M3Actualvs.SeasonalMActualvs.SeasonalRevenue0.6%2.3%0.6%1.4%1Revenue2.8%4.8%-6.2%5.9%Units0.7%1.2%0.0%0.2%Units4.1%3.1%-5.0%2.7%ASPs0.2%1.3%-0.2%1.1%ASPs-2.1%4.4%-3.4%2.5%Source:SIA,Companydata,CreditSuisseestimatesTheexhibitsbelowshow3MonthMovingAverage(3MMA)year-over-yeartrendsforSemiunits,pricing,andRev.Figure6:SemiconductorIndustry3MMAY/YGrowth–ASPs&UnitsASP3MMA-Y/YUnits3MMA-Y/Y80%60%40%20%0%-20%-40%12345678901234567-0t-0t-0t-0t-0t-0t-0t-0t-0t-1t-1t-1t-1t-1t-1t-1t-1tcccccccccccccccccOOOOOOOOOOOOOOOOOSource:SIA,Companydata,CreditSuisseestimatesSemiconductors5 4December2017Figure7:SemiconductorIndustry3MMAY/YGrowth–RevenueRevenue3MMA-Y/Y60%40%20%0%-20%-40%12345678901234567-0t-0t-0t-0t-0t-0t-0t-0t-0t-1t-1t-1t-1t-1t-1t-1t-1tcccccccccccccccccOOOOOOOOOOOOOOOOOSource:SIA,Companydata,CreditSuisseestimatesProductAnalysisYear-over-YearGrowth3MMAY/YSegmentHighlights.InOctober,DRAM(+83.0%y/y),Flash(+49.9%y/y),andMCU(+11.0%y/y)werethebestperformersrelativeto3MMAy/yRevgrowthrates.Ontheotherhand,MPUs(+1.0%y/y)exhibitedtheleastsignificant3MMAy/yRevgrowthrate.Figure8:YearoverYearRevenue(3MMA)GrowthbyProductDRAMMemoryFlashTotalICTotalSemisDSPMCULogicDiscretesAnalogMicroMPU0%20%40%60%80%100%RevenueGrowthY/Y(3MMA%)Source:SIA,Companydata,CreditSuisseestimatesSemiconductors6 4December2017Figure9:YearoverYearUnitGrowth(3MMA)Figure10:YearoverYearASPGrowth(3MMA)MCUDRAMMicroMemoryDSPFlashAnalogMPULogicTotalICTotalICTotalSemisTotalSemisDSPDiscretesDiscretesFlashLogicMemoryAnalogDRAMMCUMPUMicro-15%-10%-5%0%5%10%15%20%25%-20%0%20%40%60%80%100%120%UnitGrowthY/Y(3MMA%)ASPGrowthY/Y(3MMA%)Source:SIA,Companydata,CreditSuisseestimatesSource:SIA,Companydata,CreditSuisseestimatesGeographicAnalysisFromanindividualgeographicperspective,theAmericas(+40.9%y/y),Europe(+19.5%y/y),AsiaPacific(+17.8%y/y)andJapan(+10.7%y/y)allincreasedy/yona3MMAbasis.Figure11:GeographicTrendsvs.Seasonality10%8.7%Americas8.5%Europe10%8%7.5%la5.9%8%6.6%n6%losan6%5.1%ae4%2.9%3.3%2.9%os4.6%S2.1%1.7%ae4%2.9%2.8%3.3%lw2%SB/0.0%lw1.8%vb0%B/2%A-0.4%vbM/-2%-1.2%A0%MM/-0.7%-4%-2%M-1.6%-6%-4%-8%-6.6%-6%-4.9%-4.6%667777777777-1-1-1-1-1r-1r-1-11l--1-1-1t6677777771777vocenbeapyanJugupec-1v-1c-1n-1b-1ra-1r-1y-1nl--1g-1p-1tcNDJaFMAMJuASOoNeDJaeFMpAaJuJuuAeSOMJapanAsiaPacific10%8.1%8%7.1%7.9%6.4%8%7.2%l5.8%6%an6%laosno4%2.7%2.5%a4%se1.5%ae2%1.4%1.2%S2%0.9%0.6%S0.0%0.6%0.4%lwBlw/0%B0%v/b-0.1%vbA-2%-1.6%A-2%-1.2%M/-4%M/M-3.5%-4%-6%M-4.4%-6%-8%-5.4%-10%-8.6%-8.2%-8%6677777777776677777771777-1-1-1-1-1r-1r-1-11l--1-1-1t-1v-1c-1n-1b-1ra-1r-1y-1nl--1g-1p-1tcvocenbeapyanJugupecoNeDJaeFMpAaJuJuuAeSONDJaFMAMJuASOMSource:SIA,Companydata,CreditSuisseestimatesSemiconductors7 4December2017ASICEnd-MarketAnalysisFromanindividualend-marketperspective,ASICs(+9.8%y/y)underperformedtheoverallSemimarket(+21.9%y/y)ona3MMAy/ybasis–Automotive(+16.7%y/y),Computer/Peripheral(+16.2%y/y),Industrial/Multipurpose/Other(+13.2%y/y),Consumer(+7.1%y/y),WirelessCommunications(+5.6%y/y)andWirelineCommunications(+3.2%y/y)allincreasedy/y.Figure12:EndMarketTrendsvs.SeasonalityConsumerComputer12%10%7.7%8.3%8.2%7.8%10%9.2%8.6%la8%6.2%la5%n5.4%nos6%os1.4%1.7%0.8%aae4%3.1%eSS0%lw2%0.8%lwBB//-1.1%v0%v-1.7%bbA-2%-0.1%-0.6%A-5%M-1.7%M/-4%/-6.0%M-3.0%M-6%-10%-9.3%-8%-6.7%-11.1%-10%-9.0%-15%667777777777667777777777-1-1-1-1-1r-1r-1-11l--1-1-1t-1v-1c-1-1-1r-1r-1y-11l--1g-1-1tvocenbeapyanJugupecoenJabeapanJuupecNDJaFMAMJuASONDFMAMJuASOWirelessCommsWirelineComms10%20%6.9%7.4%16.1%l4.8%5.0%la15%a5%nons10%os1.4%1.7%ae6.4%aeS5%4.1%3.8%3.4%S0%lwB0.0%0.1%lwB/v0%/vbb-5%-2.4%-3.1%-2.4%A-5%-2.7%-1.8%A-4.0%-4.2%M/M-5.5%/M-10%M-10%-15%-12.2%-11.2%-20%-16.3%-15%6677777777776677777771777-1-1-1-1-1r-1r-1-11l--1-1-1t-1v-1c-1n-1b-1r-1r-1y-1nl--1g-1p-1tvocenbeapyanJugupecoeDJaeFapAaJuJuueScONDJaFMAMJuASONMMAAutomotiveIndustrial/Other15%15%12.5%10.4%11.1%10.9%l10%la10%annos4.5%3.6%4.6%5.1%os4.7%ae5%ae5%3.6%2.1%S0.5%S1.9%1.8%lw0%lw0.2%B/B/0%v-0.5%vb-0.3%bA-5%-2.1%AMM/-5%-3.4%/-10%-7.1%-7.5%M-5.2%M-10%-15%-11.0%-16.6%-20%-15%6677777777776677777771777-1-1-1-1-1r-1r-1-11l--1-1-1t-1v-1c-1n-1b-1ra-1r-1y-1nl--1g-1p-1tcvocenbeapyanJugupecoNeDJaeFMpAaJuJuuAeSONDJaFMAMJuASOMSource:SIA,Companydata,CreditSuisseestimatesSemiconductors8 4December2017Figure13:EndMarketY/YGrowth50%Consumer100%Computer40%80%))%30%%((60%ht20%htwwor10%or40%GGY/0%Y/20%YY-10%0%-20%-20%-30%-40%-40%-50%-60%67778889990001112223334445556667776777888999000111222333444555666777-0t-0b-0n-0t-0b-0n-0t-0b-0n-0t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-0tc-0b-0n-0tc-0b-0n-0tc-0b-0n-0tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tccOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOOeFJuOeFJuOeFJuOeFJuOeFJuOeFJuOeFJuOeFJuOeFJuOeFJuOeFJuOFFFFFFFFFFFWirelessCommsWirelineComms50%70%60%40%))%(50%%h(h30%t40%twworor20%G30%GY/Y/Y20%10%Y10%0%0%-10%-10%-20%-20%-30%-30%67778889990001112223334445556667776777888999000111222333444555666777-0t-0b-0n-0t-0b-0n-0t-0b-0n-0t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-0t-0b-0n-0t-0b-0n-0t-0b-0n-0t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1tcOeFJucOeFJucOeFJucOeFJucOeFJucOeFJucOeFJucOeFJucOeFJucOeFJucOeFJucOcOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOFFFFFFFFFFF120%Automotive100%Industrial/Other100%80%))80%%%(h60%(h60%ttwo40%wo40%rrG20%G20%Y/Y/YY0%0%-20%-20%-40%-40%-60%-60%-80%-80%67778889990001112223334445556667776777888999000111222333444555666777-0t-0b-0n-0t-0b-0n-0t-0b-0n-0t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-1b-1n-1t-0tc-0b-0n-0tc-0b-0n-0tc-0b-0n-0tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tc-1b-1n-1tccOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOeJucOOeJuOeJuOeJuOeJuOeJuOeJuOeJuOeJuOeJuOeJuOeJuOFFFFFFFFFFFFFFFFFFFFFFSource:SIA,Companydata,CreditSuisseestimatesSemiconductors9 4December2017AppendicesGeographicTrendsFigure14:GeographicAnalysis–SingleMonthSingleMonth%M/MGrowthDec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17Jul-17Aug-17Sep-17Oct-17Americas3.5%-11.2%1.3%9.4%-4.1%4.5%15.0%-2.2%14.4%5.6%1.7%Europe-1.3%5.9%-6.4%16.1%-5.1%2.6%8.3%-6.6%0.9%11.6%-3.9%Japan2.2%-4.0%-1.8%16.2%-8.9%2.1%10.4%-5.5%4.4%2.8%-1.5%AsiaPacific6.5%-10.3%3.7%11.8%-10.0%4.8%9.5%-5.2%5.4%6.7%-5.2%TOTALSEMIS4.8%-8.5%1.7%12.1%-8.3%4.3%10.6%-4.7%6.8%6.6%-3.2%OverallRevenueSingleMonth%Y/YGrowthDec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17Jul-17Aug-17Sep-17Oct-17Americas18.7%14.3%25.0%26.7%29.8%36.1%34.0%38.1%44.7%39.0%39.5%Europe2.0%10.0%5.6%16.9%16.3%21.7%16.9%18.1%21.6%17.4%19.9%Japan12.3%13.4%8.1%7.9%17.2%23.1%14.2%13.7%15.1%7.3%10.2%AsiaPacific20.9%12.7%21.0%23.7%20.8%22.6%24.0%20.2%20.3%15.3%18.0%TOTALSEMIS17.8%12.8%18.9%21.9%21.7%25.0%24.2%22.7%24.7%19.4%21.9%Source:SIA,Companydata,CreditSuisseestimatesFigure15:GeographicAnalysis–Rolling3-monthAverageOverallRevenue3MMA%M/MGrowthDec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17Jul-17Aug-17Sep-17Oct-17Americas1.2%-3.0%-2.3%-0.6%2.0%3.0%5.1%5.4%8.8%5.9%6.8%Europe-2.8%1.2%-0.7%4.9%1.0%4.0%1.9%1.2%0.6%1.8%2.6%Japan-2.0%-2.0%-1.2%3.3%1.3%2.5%1.0%2.1%2.8%0.5%1.8%AsiaPacific0.3%-0.8%-0.3%1.4%1.4%1.7%1.2%2.7%3.0%2.3%2.1%TOTALSEMIS0.0%-1.2%-0.8%1.5%1.4%2.3%2.0%3.1%4.0%2.8%3.2%OverallRevenue3MMA%Y/YGrowthDec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17Jul-17Aug-17Sep-17Oct-17Americas10.1%13.4%19.2%21.9%27.2%30.8%33.4%36.0%39.0%40.6%40.9%Europe1.3%4.9%5.8%10.9%13.0%18.2%18.2%18.8%18.8%18.9%19.5%Japan10.5%11.9%11.2%9.7%10.9%15.5%17.9%16.7%14.3%11.9%10.7%AsiaPacific15.2%15.9%18.2%19.2%21.9%22.4%22.5%22.2%21.5%18.5%17.8%TOTALSEMIS12.3%13.9%16.5%17.9%20.8%22.8%23.7%24.0%23.9%22.2%21.9%Source:SIA,Companydata,CreditSuisseestimatesSemiconductors10 4December2017EndMarketTrendsFigure16:End-MarketAnalysis–SingleMonthOverallRevenueSingleMonth%M/MGrowthDec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17Jul-17Aug-17Sep-17Oct-17Consumer-1.3%-5.4%-0.5%18.6%-11.4%5.1%8.7%-5.6%4.3%3.4%-3.7%Computer/Peripheral0.7%-4.2%2.2%9.8%-3.9%1.2%6.7%2.2%2.1%5.8%-3.0%Communications-Wireless-3.9%-7.6%-0.7%5.0%-8.0%4.5%10.7%-4.5%7.8%3.1%4.0%Communications-Wireline8.5%-6.2%-2.3%8.2%-9.5%5.9%7.8%-3.7%-2.8%9.7%-6.6%Automotive5.2%-3.1%-4.0%19.3%-8.7%1.7%8.4%-9.6%4.7%12.2%-4.1%Industrial/Multipurpose/Other17.4%-15.0%0.7%26.0%-10.8%-4.3%18.5%-11.6%0.6%21.5%-15.5%TOTALASIC1.6%-6.9%-0.6%11.9%-8.2%2.5%10.0%-4.9%4.2%7.4%-2.6%OverallRevenueSingleMonth%Y/YGrowthDec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17Jul-17Aug-17Sep-17Oct-17Consumer17.6%12.2%9.1%14.0%8.3%16.9%13.3%12.8%9.1%3.2%9.3%Computer/Peripheral-1.7%5.6%12.3%21.2%24.3%26.1%15.8%19.3%17.8%19.3%11.8%Communications-Wireless7.4%4.0%5.5%6.9%3.5%11.8%13.0%8.9%6.4%6.2%4.4%Communications-Wireline2.5%-6.0%2.8%6.0%1.9%8.4%4.9%5.8%3.8%3.8%1.9%Automotive30.3%22.7%18.4%18.2%20.6%26.5%16.6%20.1%19.4%10.2%21.5%Industrial/Multipurpose/Other4.5%8.9%24.4%6.9%18.1%24.4%-2.9%15.0%16.9%6.6%18.3%TOTALASIC8.3%7.0%10.4%11.6%11.5%18.0%11.1%13.2%11.4%8.6%9.6%Source:SIA,Companydata,CreditSuisseestimatesFigure17:End-MarketAnalysis–Rolling3-monthAverageOverallRevenue3MMA%M/MGrowthDec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17Jul-17Aug-17Sep-17Oct-17Consumer-3.6%-2.2%-2.4%4.0%1.4%3.2%0.4%2.4%2.3%0.6%1.2%Computer/Peripheral-1.0%-3.6%-0.5%2.6%2.5%2.2%1.3%3.3%3.6%3.4%1.5%Communications-Wireless-0.7%-5.1%-4.2%-1.3%-1.3%0.3%2.2%3.3%4.4%2.0%4.9%Communications-Wireline-0.4%-0.9%-0.2%-0.3%-1.4%1.2%1.1%3.1%0.3%0.9%-0.1%Automotive-2.6%1.2%-0.7%3.8%1.5%3.3%0.2%-0.1%0.8%2.2%3.9%Industrial/Multipurpose/Other-3.8%0.2%0.2%2.9%4.1%2.3%0.4%0.1%1.7%2.9%1.0%TOTALASIC-1.7%-2.8%-2.0%1.3%0.7%1.7%1.3%2.3%2.8%2.2%2.8%OverallRevenue3MMA%Y/YGrowthDec-16Jan-17Feb-17Mar-17Apr-17May-17Jun-17Jul-17Aug-17Sep-17Oct-17Consumer13.8%15.3%12.9%11.8%10.6%13.1%12.8%14.3%11.7%8.1%7.1%Computer/Peripheral6.0%4.1%5.0%13.0%19.2%23.8%21.7%20.1%17.6%18.8%16.2%Communications-Wireless10.2%7.8%5.7%5.5%5.3%7.3%9.5%11.2%9.4%7.1%5.6%Communications-Wireline-2.3%-2.3%-0.4%0.7%3.6%5.4%5.1%6.3%4.8%4.5%3.2%Automotive27.2%26.5%23.7%19.7%19.1%21.6%21.0%20.8%18.6%16.1%16.7%Industrial/Multipurpose/Other2.2%4.5%11.6%12.4%15.3%15.5%11.0%10.1%8.4%12.2%13.2%TOTALASIC9.6%8.7%8.6%9.7%11.2%13.6%13.4%13.9%11.8%10.9%9.8%Source:SIA,Companydata,CreditSuisseestimatesSemiconductors11 4December2017ICSummaryFigure18:TotalICRevenue,UnitandASPTrendsTOTALICsTOTALICs3MMMA/3MMMA%ChangeM/M%ChangeJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue3.4%4.3%2.9%3.3%Revenue-4.4%7.1%6.2%-2.7%)Units3.6%3.3%2.5%0.6%)Units-6.5%5.0%9.2%-11.0%MASPs-0.2%1.0%0.4%2.7%M/ASPs2.2%2.0%-2.8%9.4%/MSeasonalMSeasonal(Revenue2.5%1.8%2.2%1.9%(hRevenue-9.0%3.2%13.1%-9.4%AUnits1.8%1.4%2.7%0.5%tUnits-9.4%0.3%14.4%-12.2%nMASPs-0.3%0.2%0.2%1.3%oASPs0.4%1.3%-1.2%3.2%M3Actualvs.SeasonalMActualvs.SeasonalRevenue0.9%2.4%0.8%1.4%1Revenue4.7%3.8%-6.8%6.7%Units1.8%1.9%-0.2%0.1%Units2.9%4.6%-5.2%1.2%ASPs0.1%0.8%0.3%1.3%ASPs1.8%0.7%-1.6%6.2%Source:SIA,Companydata,CreditSuisseestimatesFigure19:TotalICASPsvs.UnitsASP3MMA-Y/YUnits3MMA-Y/Y70%60%50%40%30%20%10%0%-10%-20%-30%-40%12345678901234567-0t-0t-0t-0t-0t-0t-0t-0t-0t-1t-1t-1t-1t-1t-1t-1t-1tcccccccccccccccccOOOOOOOOOOOOOOOOOSource:SIA,Companydata,CreditSuisseestimatesSemiconductors12 4December2017AnalogSummaryFigure20:TotalAnalogRevenue,UnitandASPTrendsTOTALAnalogTOTALAnalog3MMMA/3MMMA%ChangeM/M%ChangeJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue1.8%2.7%2.3%1.6%Revenue-6.2%2.4%11.1%-7.7%)Units4.1%3.6%3.1%0.6%)Units-7.9%5.8%11.7%-13.9%MASPs-2.3%-0.9%-0.8%1.0%M/ASPs1.8%-3.2%-0.6%7.3%/MSeasonalMSeasonal(Revenue1.3%1.1%2.4%0.7%(hRevenue-7.0%-2.4%15.8%-9.3%AUnits2.7%0.9%3.2%0.6%tUnits-9.9%-0.4%15.8%-15.1%nMASPs-0.9%-0.2%-1.2%-0.1%oASPs4.5%-2.8%-1.0%7.9%M3Actualvs.SeasonalMActualvs.SeasonalRevenue0.5%1.6%-0.1%0.9%1Revenue0.8%4.7%-4.8%1.6%Units1.5%2.7%-0.1%0.0%Units2.1%6.3%-4.1%1.2%ASPs-1.3%-0.6%0.5%1.1%ASPs-2.7%-0.4%0.4%-0.6%Source:SIA,Companydata,CreditSuisseestimatesFigure21:TotalAnalogASPsvs.UnitsASP3MMA-Y/YUnits3MMA-Y/Y80%60%40%20%0%-20%-40%12345678901234567-0t-0t-0t-0t-0t-0t-0t-0t-0t-1t-1t-1t-1t-1t-1t-1t-1tcccccccccccccccccOOOOOOOOOOOOOOOOOSource:SIA,Companydata,CreditSuisseestimatesSemiconductors13 4December2017MCUSummaryFigure22:TotalMCURevenue,UnitandASPTrendsTOTALMCUTOTALMCU3MMMA/3MMMA%ChangeM/M%ChangeJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue1.5%1.6%1.4%1.4%Revenue-8.8%3.5%10.1%-8.5%)Units3.5%0.4%2.6%1.5%)Units-5.4%-0.3%14.0%-8.0%MASPs-1.9%1.2%-1.2%-0.1%M/ASPs-3.7%3.9%-3.4%-0.5%/MSeasonalMSeasonal(Revenue0.0%0.1%2.2%-0.6%(hRevenue-14.9%-2.2%24.8%-21.3%AUnits1.7%1.6%2.0%-2.0%tUnits-10.8%-2.1%23.6%-18.5%nMASPs-0.8%-0.7%-1.1%0.3%oASPs-6.1%2.9%0.1%-2.3%M3Actualvs.SeasonalMActualvs.SeasonalRevenue1.5%1.5%-0.8%1.9%1Revenue6.1%5.7%-14.7%12.8%Units1.8%-1.3%0.6%3.5%Units5.5%1.8%-9.6%10.5%ASPs-1.1%2.0%-0.1%-0.4%ASPs2.4%1.0%-3.5%1.8%Source:SIA,Companydata,CreditSuisseestimatesFigure23:TotalMCUASPsvs.UnitsASP3MMA-Y/YUnits3MMA-Y/Y100%80%60%40%20%0%-20%-40%-60%12345678901234567-0t-0t-0t-0t-0t-0t-0t-0t-0t-1t-1t-1t-1t-1t-1t-1t-1tcccccccccccccccccOOOOOOOOOOOOOOOOOSource:SIA,Companydata,CreditSuisseestimatesSemiconductors14 4December2017MPUSummaryFigure24:TotalMPURevenue,UnitandASPTrendsTOTALMPUTOTALMPU3MMMA/3MMMA%ChangeM/M%ChangeJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue2.8%1.7%1.5%0.5%Revenue0.6%-2.7%6.8%-2.2%)Units3.0%1.4%0.5%0.1%)Units-3.6%-2.1%7.6%-4.8%MASPs-0.2%0.3%1.0%0.5%M/ASPs4.3%-0.6%-0.7%2.7%/MSeasonalMSeasonal(Revenue2.9%2.0%2.6%1.0%(hRevenue-13.9%1.5%18.7%-14.7%AUnits2.2%2.3%3.7%0.8%tUnits-17.4%0.3%24.4%-17.3%nMASPs0.2%-0.4%-1.1%0.2%oASPs5.0%-0.5%-4.6%8.1%M3Actualvs.SeasonalMActualvs.SeasonalRevenue-0.1%-0.3%-1.1%-0.4%1Revenue14.5%-4.2%-11.8%12.5%Units0.8%-0.9%-3.2%-0.7%Units13.8%-2.4%-16.8%12.5%ASPs-0.4%0.7%2.1%0.2%ASPs-0.7%-0.1%3.9%-5.4%Source:SIA,Companydata,CreditSuisseestimatesFigure25:TotalMPUASPsvs.UnitsASP3MMA-Y/YUnits3MMA-Y/Y50%40%30%20%10%0%-10%-20%-30%12345678901234567-0t-0t-0t-0t-0t-0t-0t-0t-0t-1t-1t-1t-1t-1t-1t-1t-1tcccccccccccccccccOOOOOOOOOOOOOOOOOSource:SIA,Companydata,CreditSuisseestimatesSemiconductors15 4December2017DRAMSummaryFigure26:TotalDRAMRevenue,UnitandASPTrendsTOTALDRAMTOTALDRAM3MMMA/3MMMA%ChangeM/M%ChangeJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue6.9%7.4%5.0%4.0%Revenue-2.0%12.5%4.6%-3.8%)Units2.7%4.0%2.4%1.5%)Units-10.5%15.3%3.7%-12.1%MASPs4.1%3.3%2.6%2.5%M/ASPs9.6%-2.4%0.9%9.5%/MSeasonalMSeasonal(Revenue2.9%2.0%3.0%3.7%(hRevenue-4.4%12.6%2.4%-1.9%AUnits-0.5%-1.2%0.8%2.2%tUnits-6.3%9.9%-0.8%-5.1%nMASPs1.5%1.4%2.0%1.4%oASPs0.7%1.4%3.0%0.5%M3Actualvs.SeasonalMActualvs.SeasonalRevenue4.0%5.5%2.0%0.3%1Revenue2.4%0.0%2.3%-1.9%Units3.2%5.3%1.6%-0.7%Units-4.2%5.5%4.4%-7.0%ASPs2.6%1.8%0.6%1.1%ASPs8.8%-3.9%-2.0%9.0%Source:SIA,Companydata,CreditSuisseestimatesFigure27:TotalDRAMASPvs.UnitsASP3MMA-Y/YUnits3MMA-Y/Y150%100%50%0%-50%-100%12345678901234567-0t-0t-0t-0t-0t-0t-0t-0t-0t-1t-1t-1t-1t-1t-1t-1t-1tcccccccccccccccccOOOOOOOOOOOOOOOOOSource:SIA,Companydata,CreditSuisseestimatesSemiconductors16 4December2017FlashSummaryFigure28:TotalFlashRevenue,UnitandASPTrendsTOTALFlashTOTALFlash3MMMA/3MMMA%ChangeM/M%ChangeJul-17Aug-17Sep-17Oct-17Jul-17Aug-17Sep-17Oct-17ActualsActualsRevenue3.7%6.6%3.8%7.3%Revenue-9.6%18.4%4.1%1.3%)Units1.7%3.0%1.1%0.3%)Units-2.2%12.3%-5.9%-4.6%MASPs2.0%3.5%2.7%7.0%M/ASPs-7.6%5.4%10.7%6.1%/MSeasonalMSeasonal(Revenue3.8%1.4%5.3%3.8%(hRevenue-7.7%15.7%12.9%-15.8%AUnits2.0%2.1%1.0%1.3%tUnits-6.8%7.0%3.3%-6.4%nMASPs1.0%2.5%4.5%2.5%oASPs-5.6%8.3%9.1%-7.7%M3Actualvs.SeasonalMActualvs.SeasonalRevenue-0.1%5.1%-1.5%3.4%1Revenue-1.9%2.6%-8.8%17.0%Units-0.4%0.9%0.1%-1.0%Units4.6%5.3%-9.2%1.8%ASPs1.0%1.0%-1.8%4.5%ASPs-2.0%-2.9%1.7%13.8%Source:SIA,Companydata,CreditSuisseestimatesFigure29:TotalFlashASPvs.UnitsASP3MMA-Y/YUnits3MMA-Y/Y80%60%40%20%0%-20%-40%-60%12345678901234567-0t-0t-0t-0t-0t-0t-0t-0t-0t-1t-1t-1t-1t-1t-1t-1t-1tcccccccccccccccccOOOOOOOOOOOOOOOOOSource:SIA,Companydata,CreditSuisseestimatesSemiconductors17 4December2017CompaniesMentioned(Priceasof04-Dec-2017)Apple(AAPL.O,$169.8)IntelCorp.(INTC.OQ,$44.49)MicronTechnologyInc.(MU.OQ,$39.9)TexasInstrumentsInc.(TXN.OQ,$95.97)DisclosureAppendixAnalystCertificationI,JohnW.Pitzer,certifythat(1)theviewsexpressedinthisreportaccuratelyreflectmypersonalviewsaboutallofthesubjectcompaniesandsecuritiesand(2)nopartofmycompensationwas,isorwillbedirectlyorindirectlyrelatedtothespecificrecommendationsorviewsexpressedinthisreport.3-YearPriceandRatingHistoryforIntelCorp.(INTC.OQ)INTC.OQClosingPriceTargetPriceTargetPriceClosingPriceINTC.OQDate(US$)(US$)Rating5016-Jan-1536.4540.00O27-Jan-1737.9845.004514-Mar-1735.1835.00N4027-Oct-1744.4042.0035*Asterisksignifiesinitiationorassumptionofcoverage.302501-Jan-201501-Jan-201601-Jan-2017OUTPERFORMNEUTRAL3-YearPriceandRatingHistoryforMicronTechnologyInc.(MU.OQ)MU.OQClosingPriceTargetPriceTargetPriceClosingPriceMU.OQDate(US$)(US$)Rating5011-Dec-1435.1950.00O26-Jun-1519.6634.004002-Oct-1515.9125.003023-Dec-1514.3020.002015-Dec-1620.2925.0021-Dec-1620.5830.001021-Mar-1725.5235.00023-Mar-1726.4740.0001-Jan-201501-Jan-201601-Jan-201727-Sep-1737.0950.00OUTPERFORM*Asterisksignifiesinitiationorassumptionofcoverage.3-YearPriceandRatingHistoryforTexasInstrumentsInc.(TXN.OQ)TXN.OQClosingPriceTargetPriceTargetPriceClosingPriceTXN.OQDate(US$)(US$)Rating11526-Jan-1555.0555.00N22-Oct-1558.0960.0028-Apr-1658.6965.009025-Jul-1666.2277.0009-Jan-1774.3495.00O6525-Oct-1795.82110.00*Asterisksignifiesinitiationorassumptionofcoverage.4001-Jan-201601-Jan-2017NEUTRALOUTPERFORMTheanalyst(s)responsibleforpreparingthisresearchreportreceivedCompensationthatisbaseduponvariousfactorsincludingCreditSuisse"stotalrevenues,aportionofwhicharegeneratedbyCreditSuisse"sinvestmentbankingactivitiesSemiconductors18 4December2017AsofDecember10,2012Analysts’stockratingaredefinedasfollows:Outperform(O):Thestock’stotalreturnisexpectedtooutperformtherelevantbenchmark*overthenext12months.Neutral(N):Thestock’stotalreturnisexpectedtobeinlinewiththerelevantbenchmark*overthenext12months.Underperform(U):Thestock’stotalreturnisexpectedtounderperformtherelevantbenchmark*overthenext12months.*Relevantbenchmarkbyregion:Asof10thDecember2012,Japaneseratingsarebasedonastock’stotalreturnrelativetotheanalyst"scoverageuniversewhichconsistsofallcompaniescoveredbytheanalystwithintherelevantsector,withOutperformsrepresentingthemostattractive,Neutralsthelessattractive,andUnderperformstheleastattractiveinvestmentopportunities.Asof2ndOctober2012,U.S.andCanadianaswellasEuropeanratingsarebasedonastock’stotalreturnrelativetotheanalyst"scoverageuniversewhichconsistsofallcompaniescoveredbytheanalystwithintherelevantsector,withOutperformsrepresentingthemostattractive,Neutralsthelessattractive,andUnderperformstheleastattractiveinvestmentopportunities.ForLatinAmericanandAsiastocks(excludingJapanandAustralia),ratingsarebasedonastock’stotalreturnrelativetotheaveragetotalreturnoftherelevantcountryorregionalbenchmark(India-S&PBSESensexIndex);priorto2ndOctober2012U.S.andCanadianratingswerebasedon(1)astock’sabsolutetotalreturnpotentialtoitscurrentsharepriceand(2)therelativeattractivenessofastock’stotalreturnpotentialwithinananalyst’scoverageuniverse.ForAustralianandNewZealandstocks,theexpectedtotalreturn(ETR)calculationincludes12-monthrollingdividendyield.AnOutperformratingisassignedwhereanETRisgreaterthanorequalto7.5%;UnderperformwhereanETRlessthanorequalto5%.ANeutralmaybeassignedwheretheETRisbetween-5%and15%.TheoverlappingratingrangeallowsanalyststoassignaratingthatputsETRinthecontextofassociatedrisks.Priorto18May2015,ETRrangesforOutperformandUnderperformratingsdidnotoverlapwithNeutralthresholdsbetween15%and7.5%,whichwasinoperationfrom7July2011.Restricted(R):Incertaincircumstances,CreditSuissepolicyand/orapplicablelawandregulationsprecludecertaintypesofcommunications,includinganinvestmentrecommendation,duringthecourseofCreditSuisse"sengagementinaninvestmentbankingtransactionandincertainothercircumstances.NotRated(NR):CreditSuisseEquityResearchdoesnothaveaninvestmentratingorviewonthestockoranyothersecuritiesrelatedtothecompanyatthistime.NotCovered(NC):CreditSuisseEquityResearchdoesnotprovideongoingcoverageofthecompanyorofferaninvestmentratingorinvestmentviewontheequitysecurityofthecompanyorrelatedproducts.VolatilityIndicator[V]:Astockisdefinedasvolatileifthestockpricehasmovedupordownby20%ormoreinamonthinatleast8ofthepast24monthsortheanalystexpectssignificantvolatilitygoingforward.Analysts’sectorweightingsaredistinctfromanalysts’stockratingsandarebasedontheanalyst’sexpectationsforthefundamentalsand/orvaluationofthesector*relativetothegroup’shistoricfundamentalsand/orvaluation:Overweight:Theanalyst’sexpectationforthesector’sfundamentalsand/orvaluationisfavorableoverthenext12months.MarketWeight:Theanalyst’sexpectationforthesector’sfundamentalsand/orvaluationisneutraloverthenext12months.Underweight:Theanalyst’sexpectationforthesector’sfundamentalsand/orvaluationiscautiousoverthenext12months.*Ananalyst’scoveragesectorconsistsofallcompaniescoveredbytheanalystwithintherelevantsector.Ananalystmaycovermultiplesectors.CreditSuisse"sdistributionofstockratings(andbankingclients)is:GlobalRatingsDistributionRatingVersusuniverse(%)Ofwhichbankingclients(%)Outperform/Buy*45%(64%bankingclients)Neutral/Hold*40%(60%bankingclients)Underperform/Sell*13%(54%bankingclients)Restricted2%*ForpurposesoftheNYSEandFINRAratingsdistributiondisclosurerequirements,ourstockratingsofOutperform,Neutral,andUnderperformmostcloselycorrespondtoBuy,Hold,andSell,respectively;however,themeaningsarenotthesame,asourstockratingsaredeterminedonarelativebasis.(Pleaserefertodefinitionsabove.)Aninvestor"sdecisiontobuyorsellasecurityshouldbebasedoninvestmentobjectives,currentholdings,andotherindividualfactors.ImportantGlobalDisclosuresCreditSuisse’sresearchreportsaremadeavailabletoclientsthroughourproprietaryresearchportalonCSPLUS.CreditSuisseresearchproductsmayalsobemadeavailablethroughthird-partyvendorsoralternateelectronicmeansasaconvenience.CertainresearchproductsareonlymadeavailablethroughCSPLUS.TheservicesprovidedbyCreditSuisse’sanalyststoclientsmaydependonaspecificclient’spreferencesregardingthefrequencyandmannerofreceivingcommunications,theclient’sriskprofileandinvestment,thesizeandscopeoftheoverallclientrelationshipwiththeFirm,aswellaslegalandregulatoryconstraints.ToaccessallofCreditSuisse’sresearchthatyouareentitledtoreceiveinthemosttimelymanner,pleasecontactyoursalesrepresentativeorgotohttps://plus.credit-suisse.com.CreditSuisse’spolicyistoupdateresearchreportsasitdeemsappropriate,basedondevelopmentswiththesubjectcompany,thesectororthemarketthatmayhaveamaterialimpactontheresearchviewsoropinionsstatedherein.CreditSuisse"spolicyisonlytopublishinvestmentresearchthatisimpartial,independent,clear,fairandnotmisleading.FormoredetailpleaserefertoCreditSuisse"sPoliciesforManagingConflictsofInterestinconnectionwithInvestmentResearch:https://www.credit-suisse.com/sites/disclaimers-ib/en/managing-conflicts.html.CreditSuissedoesnotprovideanytaxadvice.AnystatementhereinregardinganyUSfederaltaxisnotintendedorwrittentobeused,andcannotbeused,byanytaxpayerforthepurposesofavoidinganypenalties.CreditSuissehasdecidednottoenterintobusinessrelationshipswithcompaniesthatCreditSuissehasdeterminedtobeinvolvedinthedevelopment,manufacture,oracquisitionofanti-personnelminesandclustermunitions.ForCreditSuisse"spositionontheissue,pleaseseehttps://www.credit-suisse.com/media/assets/corporate/docs/about-us/responsibility/banking/policy-summaries-en.pdf.SeetheCompaniesMentionedsectionforfullcompanynamesCreditSuissecurrentlyhas,orhadwithinthepast12months,thefollowingasinvestmentbankingclient(s):INTC.OQ,MU.OQCreditSuisseprovidedinvestmentbankingservicestothesubjectcompany(INTC.OQ,MU.OQ)withinthepast12months.CreditSuissecurrentlyhas,orhadwithinthepast12months,thefollowingissuer(s)asclient(s),andtheservicesprovidedwerenon-investment-banking,securities-related:INTC.OQWithinthepast12months,CreditSuissehasreceivedcompensationforinvestmentbankingservicesfromthefollowingissuer(s):INTC.OQ,MU.OQSemiconductors19 4December2017CreditSuisseexpectstoreceiveorintendstoseekinvestmentbankingrelatedcompensationfromthesubjectcompany(INTC.OQ,TXN.OQ,MU.OQ)withinthenext3months.Withinthelast12months,CreditSuissehasreceivedcompensationfornon-investmentbankingservicesorproductsfromthefollowingissuer(s):INTC.OQCreditSuisseoramemberoftheCreditSuisseGroupisamarketmakerorliquidityproviderinthesecuritiesofthefollowingsubjectissuer(s):INTC.OQ,MU.OQ,TXN.OQAmemberoftheCreditSuisseGroupispartytoanagreementwith,ormayhaveprovidedservicessetoutinsectionsAandBofAnnexIofDirective2014/65/EUoftheEuropeanParliamentandCouncil("MiFIDServices")to,thesubjectissuer(INTC.OQ,TXN.OQ)withinthepast12months.CreditSuissebeneficiallyholds>0.5%longpositionofthetotalissuedsharecapitalofthesubjectcompany(MU.OQ).Fordateandtimeofproduction,disseminationandhistoryofrecommendationforthesubjectcompany(ies)featuredinthisreport,disseminatedwithinthepast12months,pleaserefertothelink:https://rave.credit-suisse.com/disclosures/view/report?i=335823&v=-469yxotfmppkwmy954r53qbyt.ImportantRegionalDisclosuresSingaporerecipientsshouldcontactCreditSuisseAG,SingaporeBranchforanymattersarisingfromthisresearchreport.Theanalyst(s)involvedinthepreparationofthisreportmayparticipateineventshostedbythesubjectcompany,includingsitevisits.CreditSuissedoesnotacceptorpermitanalyststoacceptpaymentorreimbursementfortravelexpensesassociatedwiththeseevents.RestrictionsoncertainCanadiansecuritiesareindicatedbythefollowingabbreviations:NVS--Non-Votingshares;RVS--RestrictedVotingShares;SVS--SubordinateVotingShares.IndividualsreceivingthisreportfromaCanadianinvestmentdealerthatisnotaffiliatedwithCreditSuisseshouldbeadvisedthatthisreportmaynotcontainregulatorydisclosuresthenon-affiliatedCanadianinvestmentdealerwouldberequiredtomakeifthiswereitsownreport.ForCreditSuisseSecurities(Canada),Inc."spoliciesandproceduresregardingthedisseminationofequityresearch,pleasevisithttps://www.credit-suisse.com/sites/disclaimers-ib/en/canada-research-policy.html.CreditSuissehasactedasleadmanagerorsyndicatememberinapublicofferingofsecuritiesforthesubjectcompany(MU.OQ)withinthepast3years.Principalisnotguaranteedinthecaseofequitiesbecauseequitypricesarevariable.Commissionisthecommissionrateortheamountagreedwithacustomerwhensettingupanaccountoratanytimeafterthat.Thisresearchreportisauthoredby:CreditSuisseSecurities(USA)LLC...................................................................................................................JohnW.Pitzer;StevenJozkowskiImportantdisclosuresregardingcompaniesthatarethesubjectofthisreportareavailablebycalling+1(877)291-2683.Thesameimportantdisclosures,withtheexceptionofvaluationmethodologyandriskdiscussions,arealsoavailableonCreditSuisse’sdisclosurewebsiteathttps://rave.credit-suisse.com/disclosures.Forvaluationmethodologyandrisksassociatedwithanyrecommendation,pricetarget,orratingreferencedinthisreport,pleaserefertothedisclosuressectionofthemostrecentreportregardingthesubjectcompany.Semiconductors20 4December2017ThisreportisproducedbysubsidiariesandaffiliatesofCreditSuisseoperatingunderitsGlobalMarketsDivision.Formoreinformationonourstructure,pleaseusethefollowinglink:https://www.credit-suisse.com/who-we-areThisreportmaycontainmaterialthatisnotdirectedto,orintendedfordistributiontooruseby,anypersonorentitywhoisacitizenorresidentoforlocatedinanylocality,state,countryorotherjurisdictionwheresuchdistribution,publication,availabilityorusewouldbecontrarytolaworregulationorwhichwouldsubjectCreditSuisseoritsaffiliates("CS")toanyregistrationorlicensingrequirementwithinsuchjurisdiction.Allmaterialpresentedinthisreport,unlessspecificallyindicatedotherwise,isundercopyrighttoCS.Noneofthematerial,noritscontent,noranycopyofit,maybealteredinanyway,transmittedto,copiedordistributedtoanyotherparty,withoutthepriorexpresswrittenpermissionofCS.Alltrademarks,servicemarksandlogosusedinthisreportaretrademarksorservicemarksorregisteredtrademarksorservicemarksofCSoritsaffiliates.Theinformation,toolsandmaterialpresentedinthisreportareprovidedtoyouforinformationpurposesonlyandarenottobeusedorconsideredasanofferorthesolicitationofanoffertosellortobuyorsubscribeforsecuritiesorotherfinancialinstruments.CSmaynothavetakenanystepstoensurethatthesecuritiesreferredtointhisreportaresuitableforanyparticularinvestor.CSwillnottreatrecipientsofthisreportasitscustomersbyvirtueoftheirreceivingthisreport.Theinvestmentsandservicescontainedorreferredtointhisreportmaynotbesuitableforyouanditisrecommendedthatyouconsultanindependentinvestmentadvisorifyouareindoubtaboutsuchinvestmentsorinvestmentservices.Nothinginthisreportconstitutesinvestment,legal,accountingortaxadvice,orarepresentationthatanyinvestmentorstrategyissuitableorappropriatetoyourindividualcircumstances,orotherwiseconstitutesapersonalrecommendationtoyou.CSdoesnotadviseonthetaxconsequencesofinvestmentsandyouareadvisedtocontactanindependenttaxadviser.Pleasenoteinparticularthatthebasesandlevelsoftaxationmaychange.InformationandopinionspresentedinthisreporthavebeenobtainedorderivedfromsourcesbelievedbyCStobereliable,butCSmakesnorepresentationastotheiraccuracyorcompleteness.CSacceptsnoliabilityforlossarisingfromtheuseofthematerialpresentedinthisreport,exceptthatthisexclusionofliabilitydoesnotapplytotheextentthatsuchliabilityarisesunderspecificstatutesorregulationsapplicabletoCS.Thisreportisnottoberelieduponinsubstitutionfortheexerciseofindependentjudgment.CSmayhaveissued,andmayinthefutureissue,othercommunicationsthatareinconsistentwith,andreachdifferentconclusionsfrom,theinformationpresentedinthisreport.Thosecommunicationsreflectthedifferentassumptions,viewsandanalyticalmethodsoftheanalystswhopreparedthemandCSisundernoobligationtoensurethatsuchothercommunicationsarebroughttotheattentionofanyrecipientofthisreport.SomeinvestmentsreferredtointhisreportwillbeofferedsolelybyasingleentityandinthecaseofsomeinvestmentssolelybyCS,oranassociateofCSorCSmaybetheonlymarketmakerinsuchinvestments.Pastperformanceshouldnotbetakenasanindicationorguaranteeoffutureperformance,andnorepresentationorwarranty,expressorimplied,ismaderegardingfutureperformance.Information,opinionsandestimatescontainedinthisreportreflectajudgmentatitsoriginaldateofpublicationbyCSandaresubjecttochangewithoutnotice.Theprice,valueofandincomefromanyofthesecuritiesorfinancialinstrumentsmentionedinthisreportcanfallaswellasrise.Thevalueofsecuritiesandfinancialinstrumentsissubjecttoexchangeratefluctuationthatmayhaveapositiveoradverseeffectonthepriceorincomeofsuchsecuritiesorfinancialinstruments.InvestorsinsecuritiessuchasADR"s,thevaluesofwhichareinfluencedbycurrencyvolatility,effectivelyassumethisrisk.Structuredsecuritiesarecomplexinstruments,typicallyinvolveahighdegreeofriskandareintendedforsaleonlytosophisticatedinvestorswhoarecapableofunderstandingandassumingtherisksinvolved.Themarketvalueofanystructuredsecuritymaybeaffectedbychangesineconomic,financialandpoliticalfactors(including,butnotlimitedto,spotandforwardinterestandexchangerates),timetomaturity,marketconditionsandvolatility,andthecreditqualityofanyissuerorreferenceissuer.Anyinvestorinterestedinpurchasingastructuredproductshouldconducttheirowninvestigationandanalysisoftheproductandconsultwiththeirownprofessionaladvisersastotherisksinvolvedinmakingsuchapurchase.Someinvestmentsdiscussedinthisreportmayhaveahighlevelofvolatility.Highvolatilityinvestmentsmayexperiencesuddenandlargefallsintheirvaluecausinglosseswhenthatinvestmentisrealised.Thoselossesmayequalyouroriginalinvestment.Indeed,inthecaseofsomeinvestmentsthepotentiallossesmayexceedtheamountofinitialinvestmentand,insuchcircumstances,youmayberequiredtopaymoremoneytosupportthoselosses.Incomeyieldsfrominvestmentsmayfluctuateand,inconsequence,initialcapitalpaidtomaketheinvestmentmaybeusedaspartofthatincomeyield.Someinvestmentsmaynotbereadilyrealisableanditmaybedifficulttosellorrealisethoseinvestments,similarlyitmayprovedifficultforyoutoobtainreliableinformationaboutthevalue,orrisks,towhichsuchaninvestmentisexposed.Thisreportmayprovidetheaddressesof,orcontainhyperlinksto,websites.ExcepttotheextenttowhichthereportreferstowebsitematerialofCS,CShasnotreviewedanysuchsiteandtakesnoresponsibilityforthecontentcontainedtherein.Suchaddressorhyperlink(includingaddressesorhyperlinkstoCS"sownwebsitematerial)isprovidedsolelyforyourconvenienceandinformationandthecontentofanysuchwebsitedoesnotinanywayformpartofthisdocument.AccessingsuchwebsiteorfollowingsuchlinkthroughthisreportorCS"swebsiteshallbeatyourownrisk.ThisreportisissuedanddistributedinEuropeanUnion(exceptSwitzerland):byCreditSuisseSecurities(Europe)Limited,OneCabotSquare,LondonE144QJ,England,whichisauthorisedbythePrudentialRegulationAuthorityandregulatedbytheFinancialConductAuthorityandthePrudentialRegulationAuthority.Germany:CreditSuisseSecurities(Europe)LimitedNiederlassungFrankfurtamMainregulatedbytheBundesanstaltfuerFinanzdienstleistungsaufsicht("BaFin").UnitedStatesandCanada:CreditSuisseSecurities(USA)LLC;Switzerland:CreditSuisseAG;Brazil:BancodeInvestimentosCreditSuisse(Brasil)S.Aoritsaffiliates;Mexico:BancoCreditSuisse(México),S.A.(transactionsrelatedtothesecuritiesmentionedinthisreportwillonlybeeffectedincompliancewithapplicableregulation);Japan:byCreditSuisseSecurities(Japan)Limited,FinancialInstrumentsFirm,Director-GeneralofKantoLocalFinanceBureau(Kinsho)No.66,amemberofJapanSecuritiesDealersAssociation,TheFinancialFuturesAssociationofJapan,JapanInvestmentAdvisersAssociation,TypeIIFinancialInstrumentsFirmsAssociation;HongKong:CreditSuisse(HongKong)Limited;Australia:CreditSuisseEquities(Australia)Limited;Thailand:CreditSuisseSecurities(Thailand)Limited,regulatedbytheOfficeoftheSecuritiesandExchangeCommission,Thailand,havingregisteredaddressat990AbdulrahimPlace,27thFloor,Unit2701,RamaIVRoad,Silom,Bangrak,Bangkok10500,Thailand,Tel.+6626146000;Malaysia:CreditSuisseSecurities(Malaysia)SdnBhd;Singapore:CreditSuisseAG,SingaporeBranch;India:CreditSuisseSecurities(India)PrivateLimited(CINno.U67120MH1996PTC104392)regulatedbytheSecuritiesandExchangeBoardofIndiaasResearchAnalyst(registrationno.INH000001030)andasStockBroker(registrationno.INB230970637;INF230970637;INB010970631;INF010970631),havingregisteredaddressat9thFloor,CeejayHouse,Dr.A.B.Road,Worli,Mumbai-18,India,T-+91-2267773777;SouthKorea:CreditSuisseSecurities(Europe)Limited,SeoulBranch;Taiwan:CreditSuisseAGTaipeiSecuritiesBranch;Indonesia:PTCreditSuisseSekuritasIndonesia;Philippines:CreditSuisseSecurities(Philippines)Inc.,andelsewhereintheworldbytherelevantauthorisedaffiliateoftheabove.AdditionalRegionalDisclaimersHongKong:CreditSuisse(HongKong)Limited("CSHK")islicensedandregulatedbytheSecuritiesandFuturesCommissionofHongKongunderthelawsofHongKong,whichdifferfromAustralianlaws.CSHKLdoesnotholdanAustralianfinancialserviceslicence(AFSL)andisexemptfromtherequirementtoholdanAFSLundertheCorporationsAct2001(theAct)underClassOrder03/1103publishedbytheASICinrespectoffinancialservicesprovidedtoAustralianwholesaleclients(withinthemeaningofsection761GoftheAct).ResearchonTaiwanesesecuritiesproducedbyCreditSuisseAG,TaipeiSecuritiesBranchhasbeenpreparedbyaregisteredSeniorBusinessPerson.Australia(totheextentservicesareofferedinAustralia):CreditSuisseSecurities(Europe)Limited(“CSSEL”)andCreditSuisseInternational(“CSI”)areauthorisedbythePrudentialRegulationAuthorityandregulatedbytheFinancialConductAuthority(“FCA”)andthePrudentialRegulationAuthorityunderUKlaws,whichdifferfromAustralianLaws.CSSELandCSIdonotholdanAustralianFinancialServicesLicence(“AFSL”)andareexemptfromtherequirementtoholdanAFSLundertheCorporationsAct(Cth)2001(“CorporationsAct”)underClassOrder03/1099publishedbytheAustralianSecuritiesandInvestmentsCommission(“ASIC”),inrespectofthefinancialservicesprovidedtoAustralianwholesaleclients(withinthemeaningofsection761GoftheCorporationsAct).ThismaterialisnotfordistributiontoretailclientsandisdirectedexclusivelyatCreditSuisse"sprofessionalclientsandeligiblecounterpartiesasdefinedbytheFCA,andwholesaleclientsasdefinedundersection761GoftheCorporationsAct.CreditSuisse(HongKong)Limited(“CSHK”)islicensedandregulatedbytheSecuritiesandFuturesCommissionofHongKongunderthelawsofHongKong,whichdifferfromAustralianlaws.CSHKLdoesnotholdanAFSLandisexemptfromtherequirementtoholdanAFSLundertheCorporationsActunderClassOrder03/1103publishedbytheASICinrespectoffinancialservicesprovidedtoAustralianwholesaleclients(withinthemeaningofsection761GoftheCorporationsAct).CreditSuisseSecurities(USA)LLC(CSSU)andCreditSuisseAssetManagementLLC(CSAMLLC)arelicensedandregulatedbytheSecuritiesExchangeCommissionoftheUnitedStatesunderthelawsoftheUnitedStates,whichdifferfromAustralianlaws.CSSUandCSAMLLCdonotholdanAFSLandisexemptfromtherequirementtoholdanAFSLundertheCorporationsActunderClassOrder03/1100publishedbytheASICinrespectoffinancialservicesprovidedtoAustralianwholesaleclients(withinthemeaningofsection761GoftheCorporationsAct).Malaysia:ResearchprovidedtoresidentsofMalaysiaisauthorisedbytheHeadofResearchforCreditSuisseSecurities(Malaysia)SdnBhd,towhomtheyshoulddirectanyquerieson+60327232020.Singapore:ThisreporthasbeenpreparedandissuedfordistributioninSingaporetoinstitutionalinvestors,accreditedinvestorsandexpertinvestors(eachasdefinedundertheFinancialAdvisersRegulations)only,andisalsodistributedbyCreditSuisseAG,SingaporeBranchtooverseasinvestors(asdefinedundertheFinancialAdvisersRegulations).CreditSuisseAG,SingaporeBranchmaydistributereportsproducedbyitsforeignentitiesoraffiliatespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulations.SingaporerecipientsshouldcontactCreditSuisseAG,SingaporeBranchat+65-6212-2000formattersarisingfrom,orinconnectionwith,thisreport.Byvirtueofyourstatusasaninstitutionalinvestor,accreditedinvestor,expertinvestororoverseasinvestor,CreditSuisseAG,SingaporeBranchisexemptedfromcomplyingwithcertaincompliancerequirementsundertheFinancialAdvisersAct,Chapter110ofSingapore(the“FAA”),theFinancialAdvisersRegulationsandtherelevantNoticesandGuidelinesissuedthereunder,inrespectofanyfinancialadvisoryservicewhichCreditSuisseAG,SingaporeBranchmayprovidetoyou.UAE:ThisinformationisbeingdistributedbyCreditSuisseAG(DIFCBranch),dulylicensedandregulatedbytheDubaiFinancialServicesAuthority(“DFSA”).RelatedfinancialservicesorproductsareonlymadeavailabletoProfessionalClientsorMarketCounterparties,asdefinedbytheDFSA,andarenotintendedforanyotherpersons.CreditSuisseAG(DIFCBranch)islocatedonLevel9East,TheGateBuilding,DIFC,Dubai,UnitedArabEmirates.EU:ThisreporthasbeenproducedbysubsidiariesandaffiliatesofCreditSuisseoperatingunderitsGlobalMarketsDivisionInjurisdictionswhereCSisnotalreadyregisteredorlicensedtotradeinsecurities,transactionswillonlybeeffectedinaccordancewithapplicablesecuritieslegislation,whichwillvaryfromjurisdictiontojurisdictionandmayrequirethatthetradebemadeinaccordancewithapplicableexemptionsfromregistrationorlicensingrequirements.Non-UScustomerswishingtoeffectatransactionshouldcontactaCSentityintheirlocaljurisdictionunlessgoverninglawpermitsotherwise.UScustomerswishingtoeffectatransactionshoulddosoonlybycontactingarepresentativeatCreditSuisseSecurities(USA)LLCintheUS.PleasenotethatthisresearchwasoriginallypreparedandissuedbyCSfordistributiontotheirmarketprofessionalandinstitutionalinvestorcustomers.RecipientswhoarenotmarketprofessionalorinstitutionalinvestorcustomersofCSshouldseektheadviceoftheirindependentfinancialadvisorpriortotakinganyinvestmentdecisionbasedonthisreportorforanynecessaryexplanationofitscontents.ThisresearchmayrelatetoinvestmentsorservicesofapersonoutsideoftheUKortoothermatterswhicharenotauthorisedbythePrudentialRegulationAuthorityandregulatedbytheFinancialConductAuthorityandthePrudentialRegulationAuthorityorinrespectofwhichtheprotectionsofthePrudentialRegulationAuthorityandFinancialConductAuthorityforprivatecustomersand/ortheUKcompensationschememaynotbeavailable,andfurtherdetailsastowherethismaybethecaseareavailableuponrequestinrespectofthisreport.CSmayprovidevariousservicestoUSmunicipalentitiesorobligatedpersons("municipalities"),includingsuggestingindividualtransactionsortradesandenteringintosuchtransactions.AnyservicesCSprovidestomunicipalitiesarenotviewedas"advice"withinthemeaningofSection975oftheDodd-FrankWallStreetReformandConsumerProtectionAct.CSisprovidinganysuchservicesandrelatedinformationsolelyonanarm"slengthbasisandnotasanadvisororfiduciarytothemunicipality.Inconnectionwiththeprovisionoftheanysuchservices,thereisnoagreement,directorindirect,betweenanymunicipality(includingtheofficials,management,employeesoragentsthereof)andCSforCStoprovideadvicetothemunicipality.Municipalitiesshouldconsultwiththeirfinancial,accountingandlegaladvisorsregardinganysuchservicesprovidedbyCS.Inaddition,CSisnotactingfordirectorindirectcompensationtosolicitthemunicipalityonbehalfofanunaffiliatedbroker,dealer,municipalsecuritiesdealer,municipaladvisor,orinvestmentadviserforthepurposeofobtainingorretaininganengagementbythemunicipalityfororinconnectionwithMunicipalFinancialProducts,theissuanceofmunicipalsecurities,orofaninvestmentadvisertoprovideinvestmentadvisoryservicestooronbehalfofthemunicipality.IfthisreportisbeingdistributedbyafinancialinstitutionotherthanCreditSuisseAG,oritsaffiliates,thatfinancialinstitutionissolelyresponsiblefordistribution.Clientsofthatinstitutionshouldcontactthatinstitutiontoeffectatransactioninthesecuritiesmentionedinthisreportorrequirefurtherinformation.ThisreportdoesnotconstituteinvestmentadvicebyCreditSuissetotheclientsofthedistributingfinancialinstitution,andneitherCreditSuisseAG,itsaffiliates,andtheirrespectiveofficers,directorsandemployeesacceptanyliabilitywhatsoeverforanydirectorconsequentiallossarisingfromtheiruseofthisreportoritscontent.Principalisnotguaranteed.Commissionisthecommissionrateortheamountagreedwithacustomerwhensettingupanaccountoratanytimeafterthat.Noinformationorcommunicationprovidedhereinorotherwiseisintendedtobe,orshouldbeconstruedas,arecommendationwithinthemeaningoftheUSDepartmentofLabor’sfinalregulationdefining"investmentadvice"forpurposesoftheEmployeeRetirementIncomeSecurityActof1974,asamendedandSection4975oftheInternalRevenueCodeof1986,asamended,andtheinformationprovidedhereinisintendedtobegeneralinformation,andshouldnotbeconstruedas,providinginvestmentadvice(impartialorotherwise).Copyright©2017CREDITSUISSEAGand/oritsaffiliates.Allrightsreserved.Investmentprincipalonbondscanbeerodeddependingonsalepriceormarketprice.Inaddition,therearebondsonwhichinvestmentprincipalcanbeerodedduetochangesinredemptionamounts.Careisrequiredwheninvestinginsuchinstruments.Whenyoupurchasenon-listedJapanesefixedincomesecurities(Japanesegovernmentbonds,Japanesemunicipalbonds,Japanesegovernmentguaranteedbonds,Japanesecorporatebonds)fromCSasaseller,youwillberequestedtopaythepurchasepriceonly.Semiconductors21'