Semiconductors

Capital Calls: TV’s royal boost, Shared offices

9 Mar 2021

Concise views on global finance in the Covid-19 era: Oprah Winfrey’s interview with Prince Harry and his wife Meghan is a boon for ViacomCBS’s streaming ambitions; IWG’s revamp depends on a workplace revolution.

Chip shortages are here to stay, for some

2 Mar 2021

Pandemic-led demand swings and trade wars have left factories short of semiconductors. The chip industry’s too-successful capital discipline is also a factor. The $450 bln industry’s coming splurge on new capacity will benefit smartphone manufacturers more than automakers.

EU chip factory fantasy puts cart before horse

26 Feb 2021

Commissioner Thierry Breton wants an advanced semiconductor plant to cut reliance on Asia. The problem is that Europe’s chip designers and carmakers are ill-equipped to use such a cutting-edge site. Getting them on side, and investing more in research, is the place to start.

Intel fab spinoff might double its value

19 Feb 2021

The $250 bln chipmaker trades at a big discount to both peers that design processors and rivals that produce them. Splitting would help new CEO Pat Gelsinger close the gap. But Intel’s size and worldwide capacity constraints mean a complete separation will take years.

Capital Calls: Disney+, SPAC romance

12 Feb 2021

Concise views on global finance in the Covid-19 era: The entertainment giant’s streaming growth comes at a cost; blank-check companies are trashing all records in 2021.

Europe’s chip M&A invaders merit partial knockback

9 Feb 2021

Germany and Britain must decide whether to allow foreign takeovers of $6 bln Dialog Semiconductor, $5 bln Siltronic and $40 bln Arm. The risk lies in yielding control of scarce, technologically critical assets. In that respect, only the latter two deals are worth blocking.

Japan’s Renesas steers towards chip M&A pileup

8 Feb 2021

It's trying to buy UK-based Dialog for $6 bln less than two years after taking over similarly sized IDT. Booming demand for semiconductors used in cars makes it strategically appealing, but the implied return on investment looks unimpressive. The deal engine could be overheating.

China’s BYD builds sleek concept car factory

27 Jan 2021

The $100 bln electric-vehicle maker’s chip unit is in the spotlight with an upcoming IPO. BYD also produces batteries, giving it an edge over rivals grappling with supply-chain woes. Such vertical integration only looks feasible with generous government support, however.

Chip deal price bump shifts spotlight to Berlin

25 Jan 2021

Taiwan’s GlobalWafers raised its offer for Siltronic to $5.3 bln and cut the acceptance threshold to 50%. It’s probably enough to get the bid over the line. The next question is whether Germany will give up control of a semiconductor supplier. Investors may be too sanguine.

Europe’s chip darling may fall victim to its hype

20 Jan 2021

ASML’s market value has risen by two-thirds in the past year to $230 bln, helped by surging demand for its kit. Yet CEO Peter Wennink will struggle to meet investors’ heady growth hopes. A drawn-out trade war between China and America would make his job even harder.

Samsung boss verdict softens chaebol reform push

18 Jan 2021

Jay Y. Lee has been sentenced to 30 months in prison for bribery, less than what prosecutors requested. The lenient outcome fuels fears that protecting jobs takes priority over reining in South Korea’s powerful conglomerates. Regardless, governance upgrades might be delayed.

Taiwan chip takeover tests German tech defences

30 Nov 2020

Silicon wafer maker GlobalWafers wants to buy Munich-based Siltronic for 3.8 bln euros. The deal will consolidate an oversupplied industry and shore up the German group at a decent price. But it ultimately runs counter to Berlin’s drive to keep research and manufacturing at home.

Nvidia has limits to supercharged growth

19 Nov 2020

The $326 bln firm is riding a wave of demand for gaming and data center chips. But its own suppliers are struggling to keep pace, which crimps its current potential while putting future sales at risk. Nvidia’s future is bright, but there are limits to how much it can shine.

Foxconn hitches bumpy ride with electric vehicles

9 Nov 2020

The $39 bln iPhone-assembler wants to supply parts for 10% of the world’s green cars by 2027. The stakes are high as the company weans itself from a dependency on Apple. Founder Terry Gou’s electronics expertise and deep pockets, though, puts it in a strong starting position.

AMD finds going on offensive carries a high price

27 Oct 2020

The chipmaker is buying Xilinx for $35 bln. The $9 bln premium is worth more than three times the net present value of savings from the combination. CEO Lisa Su’s record is good though, so there may be some merit to the deal. At a minimum it puts Intel in a more difficult place.

SK Hynix’s $9 bln deal is chip sector’s quick fix

20 Oct 2020

The South Korean semiconductor giant will buy Intel's NAND memory business in its largest acquisition ever. Less competition might prop up prices, which have plunged on uncertain demand. In the long term, a beefed-up SK stands a better chance against Chinese entrants.

Panic buying scrambles tech circuitry

16 Oct 2020

The world's top contract chipmaker, TSMC, expects a 30% rise in sales this year. That’s flattered by customers from Apple to Huawei stockpiling semiconductors amid supply chain disruptions and U.S.-China tensions. Such hoarding makes it harder than usual to discern future demand.

Corona Capital: Black Friday, JPMorgan’s new tower

14 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Walmart’s Black Friday rejig makes for a curious experiment; JPMorgan goes all-in on New York real estate.

Xilinx holds the chips in an opportunistic AMD bid

12 Oct 2020

A merger of the two makes sense amid a land-grab over who supplies the growing data center market. The $100 bln AMD could gain share from Intel and Nvidia with Xilinx’s programmable chips. But there are hurdles, including the timing and the would-be buyer’s inflated stock price.

Samsung enjoys Washington gift that keeps giving

8 Oct 2020

The South Korean giant expects quarterly operating profit to jump 58% to $10.6 bln, as U.S. sanctions forced Huawei to stockpile chips. Those sales are gravy from U.S. restrictions hitting the Chinese company. Taking its telecom gear and smartphone customers is the real prize.