I am now long MSSCorps (6830) ~$1.4B MCThis appear

I am now long MSSCorps (6830) ~$1.4B MC

This appears to be a functional monopoly in CPO for inspection.

But markets might have conflated that with Material/Failure Analysis with MA-tek and iST (oligopoly).

For customers from mapping:

1. $Taiwan Semiconductor(TSM.US)

2. $NVIDIA(NVDA.US)

3. $Apple(AAPL.US)

4. $Applied Materials(AMAT.US)

5. $Lam Research(LRCX.US)

6. $ASML(ASML.US)

7. $Intel(INTC.US)

And high probability $Broadcom(AVGO.US), MediaTek, Samsung, $Marvell Tech(MRVL.US), and others (they did mention EU too).

If you're curious:

- Taipei times names TSM as a client that Msscorps provides them with advanced material and failure analysis and name drops Apple, Nvidia, Lam, AMAT (also S/O to Latent for doing DD with me on this. there's other supply chain relationships to Nvidia through things like linkedin)

- For $AMSL, Taipei Times, Sept 10, 2024 "ASML adopted Msscorps' ultra-sensitive materials analysis of photoresists"

For Intel - Material analysis lab MSSCORPS has secured orders from major manufacturers such as Nvidia and Intel (Industrial Technology Research). 

For inspection (non-destructive infrared (IR) leakage detection), they're a monopoly.

And have aggressively used litigation (like the Enli Tech lawsuit) to lock out rivals, which I view as a positive thing.

This creates massive pricing power with yields and every major player goes through them.

CPO inspection market is also extremely critical and like $AXT(AXTI.US) in the InP substrate section, this massive chokepoint has pure pricing power with price hikes.

The risk is the patent suit doesn't go as plan, but Nvidia and other hyperscalers aren't likely to go with other parties in case MSSCorps wins, so this creates a massive multi-year advantage anyway. Hyperscalers aren't going to wait to see how an emerging competitor is going to win or not + take the risk.

I do see the massive re-rating potential with MSSCorp holding a critical yields chokepoint over CPO, so I went long (NFA, DYOR), this is just my thought process.

Source: Serenity