報告_MS_京元電2449_3Q26_20261105

PDF 原檔：報告_MS_京元電2449_3Q26_20261105_original.pdf

圖片清單（已驗證 2026-11-07）

原始內容

M Update November 5, 2026 10:10 AM GMT

King Yuan Electronics Co Ltd | Asia Pacific

2027 outlook remains promising; OW

Alpha ignals Earnings Reaction

Unchanged In-line

Impact to our thesis

• odest revision lower Financial results versus consensus Direction of next 12-month

consensus EP

ource: Company data, Morgan tanley Research

Key Takeaways

• 3Q26 results largely in line with both MSe and consensus but 4Q26 both revenue and margin guidance missed.
• Despite the near-term headwind from the supply chain leading to KYEC's weaker performance we expect GPU TPU and CPU demand to all ramp up rapidly from 1Q27.
• KYEC US capacity is on track for mass production by 4Q27 and full-year contribution in 2028.
• We stay OW on robust 2027 demand margin recovery and new capacity expansion with strong customers' commitment.

4Q26 guidance cut from the major product delay and weaker martphone demand: The company cut 4Q26 revenue guidance from up >10% to high-single digit QoQ growth given the R-series GPU shipment delays and weaker smartphone/ consumer demand. The gross margin should also decline slightly to 36-37% given the capacity build but lower-than-expected utilization rate.

1Q27 and 2027 demand remain robu t: However the company reiterated that delayed demand will be pushed out to 1Q27 suggesting 1Q27 revenue will be up at least 10-15% QoQ and gross margin will recover to >40%. Looking ahead into 2027 demand remains robust and the company expects 2027 revenue to grow 40-50% YoY with margins >40%.

KYEC in-hou e burn-in oven could tart to upport MediaTek TPU: Despite the shipment delay from Micro Control Company (MCC) MediaTek management still raised its 4Q26 TPU revenue projection for both 4Q26 and 2027. We believe it relates to KYEC's supports of its in-house burn-in oven by end-2026 which could potentially leave more share to KYEC against ASE if MCC's oven shipments continue to fall short in 2027.

Morgan Stanley appreciates your support in the 2027 Extel Asia Research Survey. Voting opens 10 Novem er 2026.

King Yuan Electronics Co Ltd (2449.TW, 2449 TT)

Greater China Technology Semiconductors | Taiwan

Unless otherwise noted, all metrics are based on Morgan tanley ModelWare framework

** = Based on consensus methodology

§ = Consensus data is provided by Refinitiv Estimates

e = Morgan tanley Research estimates

Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.

For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.

= Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be associated persons of the member and may not be subject to FINRA restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

M Update

Exhibit 1: 3Q26 Earnings Review - largely in line

Source: Company data, Visible Alpha, Morgan Stanley Research estimates

M Update

Valuation Methodology and Risks

King Yuan Electronics Co Ltd (2449.TW)

Base case residual income model. Key assumptions: cost of equity of 9.8% intermediate-term growth rate of 10.5% terminal growth rate of 3.0% and cash dividend payout ratio of 65%.

Risks to Upside

• n Rise in shipments for core customers such as MediaTek
• n Strong AI demand from both GPU and ASIC
• n Penetration of wafer sorting business
• n Rise in IDM outsourcing to OSAT

Risks to ownside

• nOverall non-AI demand remaining weak
• n Significant testing market share loss
• nDrop in shipments for core customers such as MediaTek

M Update

isclosure Section

The information and opinions in Morgan Stanley Research were prepared or are disseminated y Morgan Stanley Asia Limited (which accepts the responsi ility for its contents) and/or Morgan Stanley Asia (Singapore) Pte. (Registration num er 199206298Z) and/or Morgan Stanley Asia (Singapore) Securities Pte Ltd (Registration num er 200008434H), regulated y the Monetary Authority of Singapore (which accepts legal responsi ility for its contents and should e contacted with respect to any matters arising from, or in connection with, Morgan Stanley Research), and/or Morgan Stanley Taiwan Limited and/or Morgan Stanley & Co International plc, Seoul Branch, and/or Morgan Stanley Australia Limited (A.B.N. 67 003 734 576, holder of Australian financial services license No. 233742, which accepts responsi ility for its contents), and/or Morgan Stanley Wealth Management Australia Pty Ltd (A.B.N. 19 009 145 555, holder of Australian financial services license No. 240813, which accepts responsi ility for its contents), and/or Morgan Stanley India Company Private Limited having Corporate Identification No (CIN) U22990MH1998PTC115305, regulated y the Securities and Exchange Board of India ('SEBI') and holder of licenses as a Research Analyst (SEBI Registration No. INH000001105); Stock Broker (SEBI Stock Broker Registration No. INZ000244438), Merchant Banker (SEBI Registration No. INM000011203), and depository participant with National Securities Depository Limited (SEBI Registration No. IN-DP-NSDL-567-2021) having registered office at Altimus, Level 39 & 40, Pandurang Budhkar Marg, Worli, Mum ai 400018, India; Telephone no. +91-22-61181000; Compliance Officer Details: Mr. Tejarshi Hardas, Tel. No.: +91-22-61181000 or Email: tejarshi.hardas@morganstanley.com; Grievance officer details: Mr. Tejarshi Hardas, Tel. No.: +91-22-61181000 or Email: msic-compliance@morganstanley.com which accepts the responsi ility for its contents and should e contacted with respect to any matters arising from, or in connection with, Morgan Stanley Research, and their affiliates (collectively, "Morgan Stanley"). Morgan Stanley India Company Private Limited (MSICPL) may use AI tools in providing research services. All recommendations contained herein are made y the duly qualified research analysts.

For important disclosures, stock price charts and equity rating histories regarding companies that are the su ject of this report, please see the Morgan Stanley Research Disclosure We site at www.morganstanley.com/eqr/disclosures/we app/generalresearch, or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY, 10036 USA.

For valuation methodology and risks associated with any recommendation, rating or price target referenced in this research report, please contact the Client Support Team as follows: US/Canada +1 800 303-2495; Hong Kong +852 2848-5999; Latin America +1 718 754-5444 (U.S.); London +44 (0)20-7425-8169; Singapore +65 6834-6860; Sydney +61 (0)2-9770-1505; Tokyo +81 (0)3-6836-9000. Alternatively you may contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY 10036 USA.

Analy t Certification

The following analysts here y certify that their views a out the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Charlie Chan; Daisy Dai, CFA; Lucas Wang; Daniel Yen, CFA; Henry Zhao.

.

Global Re earch Conflict Management Policy

Morgan Stanley Research has een pu lished in accordance with our conflict management policy, which is availa le at www.morganstanley.com/institutional/research/conflictpolicies. A Portuguese version of the policy can e found at www.morganstanley.com. r

Important Regulatory Di clo ure on Subject Companie

As of Septem er 30, 2026, Morgan Stanley eneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: ACM Research Inc, Advanced Micro-Fa rication Equipment Inc, Advanced Wireless Semiconductor Co, Alchip Technologies Ltd, AllRing Tech Co., AP Memory Technology Corp, ASE Technology Holding Co. Ltd., ASMedia Technology Inc, ASMPT Ltd, Aspeed Technology, Cam ricon Technology Corporation, eMemory Technology Inc, GigaDevice Semiconductor Beijing Inc, Glo alWafers Co Ltd, Gudeng Precision, Macronix International Co Ltd, Montage Technology Co Ltd, NAURA Technology Group Co Ltd, Novatek, Parade Technologies Ltd, Phison Electronics Corp, Powerchip Semiconductor Manufacturing Co, SG Micro Corp., Shanghai Fudan Microelectronics, SICC Co Ltd, Silergy Corp., Silicon Motion, StarPower Semiconductor Ltd, TSMC, UMC, Vanguard International Semiconductor, WIN Semiconductors Corp, WPG Holdings, WT Microelectronics Co. Ltd..

Within the last 12 months, Morgan Stanley managed or co-managed a pu lic offering (or 144A offering) of securities of Alchip Technologies Ltd, Iluvatar CoreX Semiconductor Co., Ltd., MediaTek, Montage Technology Co Ltd, Powerchip Semiconductor Manufacturing Co, UMC.

Within the last 12 months, Morgan Stanley has received compensation for investment anking services from ASMPT Ltd, Iluvatar CoreX Semiconductor Co., Ltd., MediaTek, Montage Technology Co Ltd, Powerchip Semiconductor Manufacturing Co, Silicon Motion, UMC.

In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment anking services from Advanced Micro-Fa rication Equipment Inc, Alchip Technologies Ltd, AP Memory Technology Corp, ASE Technology Holding Co. Ltd., ASMedia Technology Inc, ASMPT Ltd, Aspeed Technology, CXMT Corp, Espressif Systems, GigaDevice Semiconductor Beijing Inc, Glo alWafers Co Ltd, Gudeng Precision, Himax Technologies Inc, Hua Hong Semiconductor Ltd, Iluvatar CoreX Semiconductor Co., Ltd., Innoscience, King Yuan Electronics Co Ltd, Macronix International Co Ltd, MediaTek, MetaX Integrated Circuits, Montage Technology Co Ltd, Novatek, Parade Technologies Ltd, Phison Electronics Corp, Powerchip Semiconductor Manufacturing Co, Realtek Semiconductor, SG Micro Corp., SICC Co Ltd, Silergy Corp., Silicon Motion, TSMC, UMC, Universal Scientific Ind. (Shanghai), Vanguard International Semiconductor, Win ond Electronics Corp, WPG Holdings, WT Microelectronics Co. Ltd..

Within the last 12 months, Morgan Stanley has received compensation for products and services other than investment anking services from ASE Technology Holding Co. Ltd., King Yuan Electronics Co Ltd, MediaTek, Nanya Technology Corp., Novatek, Nuvoton Technology Corporation, Realtek Semiconductor, Silicon Motion, SMIC, TSMC, UMC, Universal Scientific Ind. (Shanghai), Win ond Electronics Corp, WT Microelectronics Co. Ltd..

Within the last 12 months, Morgan Stanley has provided or is providing investment anking services to, or has an investment anking client relationship with, the following company: Advanced Micro-Fa rication Equipment Inc, Alchip Technologies Ltd, AP Memory Technology Corp, ASE Technology Holding Co. Ltd., ASMedia Technology Inc, ASMPT Ltd, Aspeed Technology, CXMT Corp, Espressif Systems, GigaDevice Semiconductor Beijing Inc, Glo alWafers Co Ltd, Gudeng Precision, Himax Technologies Inc, Hua Hong Semiconductor Ltd, Iluvatar CoreX Semiconductor Co., Ltd., Innoscience, King Yuan Electronics Co Ltd, Macronix International Co Ltd, MediaTek, MetaX Integrated Circuits, Montage Technology Co Ltd, Novatek, Parade Technologies Ltd, Phison Electronics Corp, Powerchip Semiconductor Manufacturing Co, Realtek Semiconductor, SG Micro Corp., SICC Co Ltd, Silergy Corp., Silicon Motion, TSMC, UMC, Universal Scientific Ind. (Shanghai), Vanguard International Semiconductor, Win ond Electronics Corp, WPG Holdings, WT Microelectronics Co. Ltd..

Within the last 12 months, Morgan Stanley has either provided or is providing non-investment anking, securities-related services to and/or in the past has entered into an agreement to provide services or has a client relationship with the following company: ASE Technology Holding Co. Ltd., Iluvatar CoreX Semiconductor Co., Ltd., King Yuan Electronics Co Ltd, MediaTek, Montage Technology Co Ltd, Nanya Technology Corp., Novatek, Nuvoton Technology Corporation, Realtek Semiconductor, Silicon Motion, SMIC, TSMC, UMC, Universal Scientific Ind. (Shanghai), Win ond Electronics Corp, WT Microelectronics Co. Ltd..

Morgan Stanley & Co. LLC makes a market in the securities of ACM Research Inc.

The equity research analysts or strategists principally responsi le for the preparation of Morgan Stanley Research have received compensation ased upon various factors, including quality M Update of research, investor client feed ack, stock picking, competitive factors, firm revenues and overall investment anking revenues. Equity Research analysts' or strategists' compensation is not linked to investment anking or capital markets transactions performed y Morgan Stanley or the profita ility or revenues of particular trading desks.

Morgan Stanley and its affiliates do usiness that relates to companies/instruments covered in Morgan Stanley Research, including market making, providing liquidity, fund management, commercial anking, extension of credit, investment services and investment anking. Morgan Stanley sells to and uys from customers the securities/instruments of companies covered in Morgan Stanley Research on a principal asis. Morgan Stanley may have a position in the de t of the Company or instruments discussed in this report. Morgan Stanley trades or may trade as principal in the de t securities (or in related derivatives) that are the su ject of the de t research report.

Certain disclosures listed a ove are also for compliance with applica le regulations in non-US jurisdictions.

STOCK RATINGS

Morgan Stanley uses a relative rating system using terms such as Overweight, Equal-weight, Not-Rated or Underweight (see definitions elow). Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of uy, hold and sell. Investors should carefully read the definitions of all ratings used in Morgan Stanley Research. In addition, since Morgan Stanley Research contains more complete information concerning the analyst's views, investors should carefully read Morgan Stanley Research, in its entirety, and not infer the contents from the rating alone. In any case, ratings (or research) should not e used or relied upon as investment advice. An investor's decision to uy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations.

Global Stock Rating Di tribution

(as of Octo er 31, 2026)

The Stock Ratings descri ed elow apply to Morgan Stanley's Fundamental Equity Research and do not apply to De t Research produced y the Firm.

For disclosure purposes only (in accordance with FINRA requirements), we include the category headings of Buy, Hold, and Sell alongside our ratings of Overweight, Equal-weight, Not-Rated and Underweight. Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of uy, hold, and sell ut represent recommended relative weightings (see definitions elow). To satisfy regulatory requirements, we correspond Overweight, our most positive stock rating, with a uy recommendation; we correspond Equal-weight and Not-Rated to hold and Underweight to sell recommendations, respectively.

Data include common stock and ADRs currently assigned ratings. Investment Banking Clients are companies from whom Morgan Stanley received investment anking compensation in the last 12 months. Due to rounding off of decimals, the percentages provided in the "% of total" column may not add up to exactly 100 percent.

Analy t Stock Rating

Overweight (O). The stock's total return is expected to exceed the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted asis, over the next 12-18 months.

Equal-weight (E). The stock's total return is expected to e in line with the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted asis, over the next 12-18 months.

Not-Rated (NR). Currently the analyst does not have adequate conviction a out the stock's total return relative to the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted asis, over the next 12-18 months.

Underweight (U). The stock's total return is expected to e elow the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted asis, over the next 12-18 months.

Unless otherwise specified, the time frame for price targets included in Morgan Stanley Research is 12 to 18 months.

Analy t Indu try View

Attractive (A): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to e attractive vs. the relevant road market enchmark, as indicated elow.

In-Line (I): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to e in line with the relevant road market enchmark, as indicated elow. Cautious (C): The analyst views the performance of his or her industry coverage universe over the next 12-18 months with caution vs. the relevant road market enchmark, as indicated elow. Benchmarks for each region are as follows: North America - S&P 500; Latin America - relevant MSCI country index or MSCI Latin America Index; Europe - MSCI Europe; Japan - TOPIX; Asia - relevant MSCI country index or MSCI su -regional index or MSCI AC Asia Pacific ex Japan Index.

Stock Price, Price Target and Rating Hi tory (See Rating Definition )

M Update

King Yuan Electronics Co Ltd (2449.TW) - As of 11/05/26 GMT in TWD Industry : Greater China Technology Semiconductors

500

Stock Rating History: 11/1/21:E/C; 10/4/22 : E/A; 2/22/23:E/I; 3/3/23 : 0/I; 7/7/23:0/A; 7/21/24 :0/I;7/14/25:0/A

Price Target History: 10/12/21 : 40.95: 1/24/22 :42.86; 5/6/22 :45.71; 7/12/22: 38.1; 3/3/23 :46.67; 6/12/23: 57.14; 7/7/23:64.76;8/29/23:83.81;11/4/23:95.24:2/26/24:104.76;6/25/24:133.33; 11/9/24:152.38;5/12/25:131.43; 3333333135 4/1/26:321.9;6/22/26:369.52:8/8/26:338;10/9/26:348

Source: Morgan Stanley Research Date Format : MM/DD/YY

Price Target No Price Target Assigned (NA)

Stock Price (Not Covered by Current Analyst) Stock Price (Covered by Current Analyst)

Stock Ratings: Overweight (0) Equal-weight (E) Underweight (U) Not-Rated (NR) No Rating Available (NA)

Stock and Industry Ratings (abbreviations below) appear as Stock Rating/Industry View

Industry View: Attractive (A) In-line (I)Cautious (C) No Rating (NR)

Effective January 13, 2014, the stocks covered by Morgan Stanley Asia Pacific will be rated relative to the analyst's industry (or industry team's) coverage.

Effective January 13, 2014, the industry view benchmarks for Morgan Stanley Asia Pacific are as follows: relevant MSCI country index or MSCI sub-regional index or MSCI AC Asia Pacific ex Japan Index.

Important Di clo ure for Morgan Stanley Smith Barney LLC Cu tomer

Important disclosures regarding any material conflict of interest that can reasona ly e expected to have influenced Morgan Stanley Smith Barney LLC's choice of a third-party research provider or the su ject company of a third-party research report, are availa le on the Morgan Stanley Wealth Management disclosure we site at www.morganstanley.com/online/researchdisclosures. For Morgan Stanley specific disclosures, you may refer to https://www.morganstanley.com/eqr/disclosures/we app/generalresearch.

Each Morgan Stanley research report is reviewed and approved on ehalf of Morgan Stanley Smith Barney LLC. This review and approval is conducted y the same person who reviews the research report on ehalf of Morgan Stanley. This could create a conflict of interest.

Other Important Di clo ure

Morgan Stanley Research policy is to update research reports as and when the Research Analyst and Research Management deem appropriate, ased on developments with the issuer, the sector, or the market that may have a material impact on the research views or opinions stated therein. In addition, certain Research pu lications are intended to e updated on a regular periodic asis (weekly/monthly/quarterly/annual) and will ordinarily e updated with that frequency, unless the Research Analyst and Research Management determine that a different pu lication schedule is appropriate ased on current conditions.

Morgan Stanley is not acting as a municipal advisor and the opinions or views contained herein are not intended to e, and do not constitute, advice within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Morgan Stanley produces an equity research product called a "Tactical Idea." Views contained in a "Tactical Idea" on a particular stock may e contrary to the recommendations or views expressed in research on the same stock. This may e the result of differing time horizons, methodologies, market events, or other factors. For all research availa le on a particular stock, please contact your sales representative or go to Matrix at http://www.morganstanley.com/matrix.

Morgan Stanley Research is provided to our clients through our proprietary research portal on Matrix and also distri uted electronically y Morgan Stanley to clients. Certain, ut not all, Morgan Stanley Research products are also made availa le to clients through third-party vendors or redistri uted to clients through alternate electronic means as a convenience. For access to all availa le Morgan Stanley Research, please contact your sales representative or go to Matrix at http://www.morganstanley.com/matrix.

Any access and/or use of Morgan Stanley Research is su ject to Morgan Stanley's Terms of Use (http://www.morganstanley.com/terms.html). By accessing and/or using Morgan Stanley Research, you are indicating that you have read and agree to e ound y our Terms of Use (http://www.morganstanley.com/terms.html). In addition you consent to Morgan Stanley processing your personal data and using cookies in accordance with our Privacy Policy and our Glo al Cookies Policy (http://www.morganstanley.com/privacy_pledge.html), including for the purposes of setting your preferences and to collect readership data so that we can deliver etter and more personalized service and products to you. To find out more information a out how Morgan Stanley processes personal data, how we use cookies and how to reject cookies see our Privacy Policy and our Glo al Cookies Policy (http://www.morganstanley.com/privacy_pledge.html). Please use the provided link to review the Terms and Conditions and Most Important Terms and Conditions for Morgan Stanley India Company Private Limited (https://www.morganstanley.com/assets/ pdfs/a out-us-glo al-offices/india/Terms_and_conditions.pdf) and the following link to review the audit report (https://ny.matrix.ms.com/eqr/research/we app/researchdocs/ MSICPL_Morgan_Stanley_Research_Audit_Report.pdf).

If you do not agree to our Terms of Use and/or if you do not wish to provide your consent to Morgan Stanley processing your personal data or using cookies please do not access our research.

11/01 2026

M Update

Morgan Stanley Research does not provide individually tailored investment advice. Morgan Stanley Research has een prepared without regard to the circumstances and o jectives of those who receive it. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of an investment or strategy will depend on an investor's circumstances and o jectives. The securities, instruments, or strategies discussed in Morgan Stanley Research may not e suita le for all investors, and certain investors may not e eligi le to purchase or participate in some or all of them. Morgan Stanley Research is not an offer to uy or sell or the solicitation of an offer to uy or sell any security/instrument or to participate in any particular trading strategy. The value of and income from your investments may vary ecause of changes in interest rates, foreign exchange rates, default rates, prepayment rates, securities/instruments prices, market indexes, operational or financial conditions of companies or other factors. There may e time limitations on the exercise of options or other rights in securities/instruments transactions. Past performance is not necessarily a guide to future performance. Estimates of future performance are ased on assumptions that may not e realized. If provided, and unless otherwise stated, the closing price on the cover page is that of the primary exchange for the su ject company's securities/instruments.

The fixed income research analysts, strategists or economists principally responsi le for the preparation of Morgan Stanley Research have received compensation ased upon various factors, including quality, accuracy and value of research, firm profita ility or revenues (which include fixed income trading and capital markets profita ility or revenues), client feed ack and competitive factors. Fixed Income Research analysts', strategists' or economists' compensation is not linked to investment anking or capital markets transactions performed y Morgan Stanley or the profita ility or revenues of particular trading desks.

The "Important Regulatory Disclosures on Su ject Companies" section in Morgan Stanley Research lists all companies mentioned where Morgan Stanley owns 1% or more of a class of common equity securities of the companies. For all other companies mentioned in Morgan Stanley Research, Morgan Stanley may have an investment of less than 1% in securities/instruments or derivatives of securities/instruments of companies and may trade them in ways different from those discussed in Morgan Stanley Research. Employees of Morgan Stanley not involved in the preparation of Morgan Stanley Research may have investments in securities/instruments or derivatives of securities/instruments of companies mentioned and may trade them in ways different from those discussed in Morgan Stanley Research. Derivatives may e issued y Morgan Stanley or associated persons.

With the exception of information regarding Morgan Stanley, Morgan Stanley Research is ased on pu lic information. Morgan Stanley makes every effort to use relia le, comprehensive information, ut we make no representation that it is accurate or complete. We have no o ligation to tell you when opinions or information in Morgan Stanley Research change apart from when we intend to discontinue equity research coverage of a su ject company. Facts and views presented in Morgan Stanley Research have not een reviewed y, and may not reflect information known to, professionals in other Morgan Stanley usiness areas, including investment anking personnel.

Morgan Stanley Research personnel may participate in company events such as site visits and are generally prohi ited from accepting payment y the company of associated expenses unless pre-approved y authorized mem ers of Research management.

Morgan Stanley may make investment decisions that are inconsistent with the recommendations or views in this report.

To our readers ased in Taiwan or trading in Taiwan securities/instruments: Information on securities/instruments that trade in Taiwan is distri uted y Morgan Stanley Taiwan Limited ("MSTL"). Such information is for your reference only. The reader should independently evaluate the investment risks and is solely responsi le for their investment decisions. Morgan Stanley Research may not e distri uted to the pu lic media or quoted or used y the pu lic media without the express written consent of Morgan Stanley. Any non-customer reader within the scope of Article 7-1 of the Taiwan Stock Exchange Recommendation Regulations accessing and/or receiving Morgan Stanley Research is not permitted to provide Morgan Stanley Research to any third party (including ut not limited to related parties, affiliated companies and any other third parties) or engage in any activities regarding Morgan Stanley Research which may create or give the appearance of creating a conflict of interest. Information on securities/instruments that do not trade in Taiwan is for informational purposes only and is not to e construed as a recommendation or a solicitation to trade in such securities/instruments. MSTL may not execute transactions for clients in these securities/instruments.

Certain information in Morgan Stanley Research was sourced y employees of the Shanghai Representative Office of Morgan Stanley Asia Limited for the use of Morgan Stanley Asia Limited. Morgan Stanley is not incorporated under PRC law and the research in relation to this report is conducted outside the PRC. Morgan Stanley Research does not constitute an offer to sell or the solicitation of an offer to uy any securities in the PRC. PRC investors shall have the relevant qualifications to invest in such securities and shall e responsi le for o taining all relevant approvals, licenses, verifications and/or registrations from the relevant governmental authorities themselves. Neither this report nor any part of it is intended as, or shall constitute, provision of any consultancy or advisory service of securities investment as defined under PRC law. Such information is provided for your reference only.

Morgan Stanley Research is disseminated in Brazil y Morgan Stanley C.T.V.M. S.A. located at Av. Brigadeiro Faria Lima, 3600, 6th floor, São Paulo - SP, Brazil; and is regulated y the Comissão de Valores Mo iliários; in Mexico y Morgan Stanley México, Casa de Bolsa, S.A. de C.V which is regulated y Comision Nacional Bancaria y de Valores. Paseo de los Tamarindos 90, Torre 1, Col. Bosques de las Lomas Floor 29, 05120 Mexico City; in Japan y Morgan Stanley MUFG Securities Co., Ltd. and, for Commodities related research reports only, Morgan Stanley Capital Group Japan Co., Ltd; in Hong Kong y Morgan Stanley Asia Limited (which accepts responsi ility for its contents) and y Morgan Stanley Bank Asia Limited; in Singapore y Morgan Stanley Asia (Singapore) Pte. (Registration num er 199206298Z) and/or Morgan Stanley Asia (Singapore) Securities Pte Ltd (Registration num er 200008434H), regulated y the Monetary Authority of Singapore (which accepts legal responsi ility for its contents and should e contacted with respect to any matters arising from, or in connection with, Morgan Stanley Research) and y Morgan Stanley Bank Asia Limited, Singapore Branch (Registration num er T14FC0118J); in Australia to "wholesale clients" within the meaning of the Australian Corporations Act y Morgan Stanley Australia Limited A.B.N. 67 003 734 576, holder of Australian financial services license No. 233742, which accepts responsi ility for its contents; in Australia to "wholesale clients" and "retail clients" within the meaning of the Australian Corporations Act y Morgan Stanley Wealth Management Australia Pty Ltd (A.B.N. 19 009 145 555, holder of Australian financial services license No. 240813, which accepts responsi ility for its contents; in Korea y Morgan Stanley & Co International plc, Seoul Branch; in India y Morgan Stanley India Company Private Limited having Corporate Identification No (CIN) U22990MH1998PTC115305, regulated y the Securities and Exchange Board of India ('SEBI') and holder of licenses as a Research Analyst (SEBI Registration No. INH000001105); Stock Broker (SEBI Stock Broker Registration No. INZ000244438), Merchant Banker (SEBI Registration No. INM000011203), and depository participant with National Securities Depository Limited (SEBI Registration No. IN-DP-NSDL-567-2021) having registered office at Altimus, Level 39 & 40, Pandurang Budhkar Marg, Worli, Mum ai 400018, India; Telephone no. +91-22-61181000; Compliance Officer Details: Mr. Tejarshi Hardas, Tel. No.: +91-22-61181000 or Email: tejarshi.hardas@morganstanley.com; Grievance officer details: Mr. Tejarshi Hardas, Tel. No.: +91-22-61181000 or Email: msic-compliance@morganstanley.com. Morgan Stanley India Company Private Limited (MSICPL) may use AI tools in providing research services. All recommendations contained herein are made y the duly qualified research analysts; in Germany and the European Economic Area where required y Morgan Stanley Europe S.E., authorised and regulated y Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin) under the reference num er 149169; in the US y Morgan Stanley & Co. LLC, which accepts responsi ility for its contents. Morgan Stanley & Co. International plc, authorized y the Prudential Regulation Authority and regulated y the Financial Conduct Authority and the Prudential Regulation Authority, disseminates in the UK research that it has prepared, and research which has een prepared y any of its affiliates, only to persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the 'Order'); (ii) are persons who are high net worth entities falling within Article 49(2)(a) to (d) of the Order; or (iii) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000, as amended) may otherwise lawfully e communicated or caused to e communicated. RMB Morgan Stanley Proprietary Limited is a mem er of the JSE Limited and A2X (Pty) Ltd. RMB Morgan Stanley Proprietary Limited is a joint venture owned equally y Morgan Stanley International Holdings Inc. and RMB Investment Advisory (Proprietary) Limited, which is wholly owned y FirstRand Limited. Morgan Stanley Research is disseminated in Canada y Morgan Stanley Canada Limited and Morgan Stanley Wealth Management Canada Inc., mem ers of the Canadian M Update Investment Regulatory Organization (CIRO). The information in Morgan Stanley Research is eing disseminated y Morgan Stanley Saudi Ara ia, regulated y the Capital Market Authority in the Kingdom of Saudi Ara ia, and is directed at Sophisticated investors only.

Morgan Stanley Hong Kong Securities Limited is the liquidity provider/market maker for securities of ASMPT Ltd, GigaDevice Semiconductor Beijing Inc, Hua Hong Semiconductor Ltd, Montage Technology Co Ltd listed on the Stock Exchange of Hong Kong Limited. An updated list can e found on HKEx we site: http://www.hkex.com.hk.

The information in Morgan Stanley Research is eing communicated y Morgan Stanley & Co. International plc (DIFC Branch), regulated y the Du ai Financial Services Authority (the DFSA) or y Morgan Stanley & Co. International plc (ADGM Branch), regulated y the Financial Services Regulatory Authority A u Dha i (the FSRA), and is directed at Professional Clients only, as defined y the DFSA or the FSRA, respectively. The financial products or financial services to which this research relates will only e made availa le to a customer who we are satisfied meets the regulatory criteria of a Professional Client. A distri ution of the different MS Research ratings or recommendations, in percentage terms for Investments in each sector covered, is availa le upon request from your sales representative.

The information in Morgan Stanley Research is eing communicated y Morgan Stanley & Co. International plc (QFC Branch), regulated y the Qatar Financial Centre Regulatory Authority (the QFCRA), and is directed at usiness customers and market counterparties only and is not intended for Retail Customers as defined y the QFCRA.

As required y the Capital Markets Board of Turkey, investment information, comments and recommendations stated here, are not within the scope of investment advisory activity. Investment advisory service is provided exclusively to persons ased on their risk and income preferences y the authorized firms. Comments and recommendations stated here are general in nature. These opinions may not fit to your financial status, risk and return preferences. For this reason, to make an investment decision y relying solely to this information stated here may not ring a out outcomes that fit your expectations.

The trademarks and service marks contained in Morgan Stanley Research are the property of their respective owners. Third-party data providers make no warranties or representations relating to the accuracy, completeness, or timeliness of the data they provide and shall not have lia ility for any damages relating to such data. The Glo al Industry Classification Standard (GICS) was developed y and is the exclusive property of MSCI and S&P.

Morgan Stanley Research, or any portion thereof may not e reprinted, sold or redistri uted without the written consent of Morgan Stanley.

Indicators and trackers referenced in Morgan Stanley Research may not e used as, or treated as, a enchmark under Regulation EU 2016/1011, or any other similar framework.

The issuers and/or fixed income products recommended or discussed in certain fixed income research reports may not e continuously followed. Accordingly, investors should regard those fixed income research reports as providing stand-alone analysis and should not expect continuing analysis or additional reports relating to such issuers and/or individual fixed income products. Morgan Stanley may hold, from time to time, material financial and commercial interests regarding the company su ject to the Research report.

Registration granted y SEBI and certification from the National Institute of Securities Markets (NISM) in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are su ject to market risks. Read all the related documents carefully efore investing.

References to any prediction market or event contract do not constitute an offer, solicitation, recommendation, or endorsement to participate in any such market or contract. Morgan Stanley Research may not e distri uted or made availa le in any jurisdiction where such distri ution would e unlawful or otherwise prohi ited y applica le law.

INDU TRY COVERAGE: Greater China Technology emiconductors

M Update

Stock Ratings are subject to change Please see latest research for each company

• Historical prices are not split adjusted

© 2026 Morgan Stanley