On average, shares of HK-listed hardware names underperformed the market and their global peers on a one-month basis, which in our view was due to: a) a cut in net profit forecasts, and b) the broad-based market correction. Taiwan-listed technology names reported their Feb 2021 turnover. We noted a pick-up in the yoy revenue growth rate in Feb, but to avoid CNY impact, we combined Jan and Feb 2021 for our analysis. In general, we saw a soft start in 2022. In the near term, softer-than-expected 2021 results and concerns about the outlook are expected to put pressure on the shares of hardware names. We believe that key themes, including auto electronics, such as EVs and LiDAR, and the metaverse, will drive hardware industry development and that the leading players will remain the focus of the market. Those with diversified production bases are expected to outperform, given concerns about potential near-term supply disruption. The analysis in this report is based on industry and macro figures and may differ from the views of individual analysts, in some cases.