Electronics

Samsung’s diminishing tech edge is in full glare

31 Oct 2024

The South Korean giant has lost over $100 bln of market value this year as it falls behind rivals in making chips used for AI. The company may be paying the price for one giant distraction: Boss Jay Y. Lee's never-ending legal troubles. Shareholders are voting with their feet.

For global firms, India IPOs are a honey trap

17 Sep 2024

Hyundai and LG Electronics are each keen to float their local subsidiary on Mumbai bourses. Rich valuations are on offer. Companies have been burnt, though, by chasing additional listings around the world. The risk of getting hurt looks particularly bad in India.

Elliott has limited ammo in UK retail bidding war

4 Mar 2024

The US investment group’s latest $951 mln offer for retailer Currys could have yielded an adequate return. But the target has rejected it. Hiking the offer looks tricky given the ropey UK economy, reduced scope for leverage, and potential rival bidder JD.com’s deep pockets.

Walmart buys TV portal to nowhere

20 Feb 2024

The $484 bln retailer is buying smart-TV maker Vizio for $2.3 bln. It’s a tiny gamble on the possibility the operating system eventually captures individual viewing habits and beefs up ad capabilities. But given Walmart’s M&A track record, chances are, it’s still a waste.

Japan’s overseas tech deal crosses financial wires

15 Feb 2024

Electronics design outfit Altium has a smart product and is growing at a decent pace. That doesn't justify Renesas paying $6 bln for the Australian-listed company. Unless the buyer can supercharge revenue, it's another Japanese outbound deal that will generate meagre returns.

Midea will test China Inc’s welcome overseas

7 Dec 2023

The world’s largest home appliance company plans to use proceeds from a Hong Kong listing to buy global brands. It follows the $48 bln firm’s 2017 purchase of Germany’s Kuka. Outbound M&A has shrunk but a weak Chinese economy provides a growing incentive to pursue deals abroad.

Foxconn is still running with difficult status quo

27 Nov 2023

Terry Gou’s exit from Taiwan’s presidential election race may shield the $45 bln firm he founded from immediate political crossfire from Beijing. However, the Apple supplier’s push to move production outside of China leaves it firmly on frontlines of rising cross-strait tensions.

Capital Calls: Carlyle, Panasonic

22 Nov 2023

Concise views on global finance: The US private equity firm is making a decent return selling its stake in McDonald’s China back to the burger chain. The $25 bln Japanese conglomerate is offloading a chunk of its low-margin automotive unit and will consider a listing, too.

Foxconn’s China woes expose supply chain dilemma

24 Oct 2023

A tax probe is hitting the Apple supplier ahead of a key Taiwanese election in which founder Terry Gou is running for president. It may complicate the manufacturer’s plan to move production outside China. Other multinationals will learn from Foxconn the true cost of reshoring.

Siemens is case study in China de-risking dilemma

4 Oct 2023

The $110 bln conglomerate trades well below the sum of its parts. The normal fix would be to offload low-margin areas like its legacy railway division. But Siemens has a patchy record on M&A, and its growth story largely depends on China – from which it is obliged to de-risk.

Apple may be poisoned by Google antitrust fallout

27 Sep 2023

Founder Steve Jobs once threatened “thermonuclear war” against his rival for copying the iPhone. Now, more than 15% of Apple's operating profit might be coming from fees paid by the search giant. The big risk is that an unfavorable verdict will taint its rich valuation multiple.

GE chief’s efforts pay back twice over

25 Jul 2023

Jet engines and turbines are back in demand after years of weakness when CEO Larry Culp could do little but focus on efficiency. The conglomerate is now equipped for better times. So’s the boss, whose extravagant $232 mln bonus – pegged to the share price – is finally in the bag.

Samsung sees glimmer of light at end of tunnel

7 Jul 2023

The $365 bln South Korean tech titan warned that its quarterly operating profit has probably cratered 96%, thanks to a global memory-chip glut. But there are signs that prices are bottoming out. A recent artificial intelligence frenzy may also bolster demand in the year ahead.

Foxconn’s global dealmaking suffers Sharp shock

24 May 2023

The iPhone supplier rescued the Japanese electronics group in 2016 with a promise to turn it around. Sharp’s surprise $1.6 bln writedown casts doubt on the Taiwanese group’s grip on its investment. It also raises questions about Foxconn’s push into assembling electric vehicles.

Toshiba buyout heralds a big step back for Japan

20 Jan 2023

A deal for the $15 bln conglomerate is finally in sight. Foreign investors, who agitated for years, are likely to sell control back to local owners less inclined to shake up a national icon. Domestic policy shifts may also stifle local private equity before it can get rolling.

Taiwan’s Foxconn slowly checks into iPhone detox

1 Dec 2022

The $45 bln electronics maker’s relationship with Apple was a money-spinner. Yet even before protests disrupted Chinese production lines in November, the latter was hedging its dependence on Foxconn, denting profitability. Withdrawal will be gradual, painful and healthy.

Capital Calls: Fuzzy Fedspeak, Dr. Martens

24 Nov 2022

Concise views on global finance: The U.S. central bank has left traders guessing the meaning of the word “various”; shares in the recently listed British bootmaker fell 20% after sales missed expectations, and a warning that its investment needs will hurt profitability.

Samsung stares at use-it-or-lose-it cash dilemma

7 Oct 2022

Cooling demand for chips and smartphones hit operating profit at the South Korean trade bellwether. It’s trying to catch up to rivals on multiple fronts, and a crashing won cuts the cheque it could write for overseas M&A. Deploying its $77 bln war chest is getting trickier.

Samsung climate inertia is by-product of Seoul’s

20 Sep 2022

The $274 bln conglomerate's 2050 net-zero goal underwhelms next to those set by Apple, Intel and others. Blame South Korea’s power-market monopoly and regressive renewable policies. With investors and customers demanding action, Samsung's corporate heft will be put to the test.

Capital Calls: Illumina, Peloton

12 Aug 2022

Concise views on global finance: Growth is stagnating at the $30 bln DNA sequencing company, and regulatory problems with its Grail deal are also coming into view; a class action lawsuit against the virtual fitness outfit provides an unlikely reminder of its former glory days.