Semiconductors

Toshiba’s pulled chip IPO is tip of its worries

28 Sep 2020

The Japanese conglomerate and backer Bain were too greedy, putting an electric $20 bln valuation on the chip unit spun out two years ago. Kioxia’s debut was supposed to help put scandal-plagued Toshiba back on track. The flop hands fresh ammunition to its activist shareholders.

Corona Capital: Playboy, Mondelez

21 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: The owner of perhaps the most famous adult magazine is hoping a SPAC can give it a new lease on life; Mondelez wants to expand its range of healthy snacks – but they’re not always the best money spinners.

Arm M&A calls for Boris Johnson veto

8 Sep 2020

The $32 bln chip designer’s owner, SoftBank, may sell to a U.S. giant. That would put UK jobs at risk and reduce the country’s sway over an important asset. The prime minister, who wants to boost the country’s digital credentials, has the power to stop a deal.

Corona Capital: Ford narrows the gap

30 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: The Detroit automaker put in a better second-quarter performance than expected. That’s good news for under-pressure CEO Jim Hackett – and allows Ford to close some of the distance to rival GM.

Intel’s tech delays bite progressively harder

23 Jul 2020

Its next-generation chips are six months behind schedule – the latest in a years-long series of stumbles for the $255 bln processor maker. That’s more than just a timing issue. Rivals like AMD are hungry for a slice of the data-center pie, and there’s only so much to go around.

Arm M&A offers SoftBank a tricky route to riches

23 Jul 2020

The Japanese group in 2016 overpaid for the $32 bln chip designer, whose results subsequently deteriorated. A sale to $257 bln Nvidia may offer better returns than an IPO. But it would also rile antitrust agencies and Arm’s customers, who compete with its would-be future owner.

Chipmaker puts history over price in $21 bln deal

13 Jul 2020

Cost savings come nowhere near covering the premium Analog Devices is offering for rival Maxim after years of flirting with the idea. The hope is that finally putting them together will increase sway over customers enough to justify it. Analog’s past suggests that’s possible.

Chip IPO tests Hong Kong-China feedback loop

6 Jul 2020

SMIC more than doubled its Shanghai offer to $6.6 bln on strong demand. Its Hong Kong shares had risen sharply ahead of the mainland listing valuing the semiconductor maker at 100 times forecast earnings. That’s hard to justify, even with Beijing’s aim of tech self-sufficiency.

Corona Capital: Merger bans, Moelis, Domino’s Pizza

23 Apr 2020

Concise views on the pandemic’s corporate and financial fallout: U.S. politicians plan a curb on opportunistic M&A, advisory boutique Moelis cuts its dividend, and Domino's delivers.

UK’s inward M&A muddle comes home to roost

21 Apr 2020

China-backed buyout firm Canyon Bridge is trying to wrest control of Imagination Technologies, a British chip designer it acquired in 2017. The UK government lacks the grounds and the legislation to intervene. And its nuanced position on Huawei complicates a tougher approach.

Corona Capital: LVMH, L’Oréal, Pandemic bonds

16 Apr 2020

Concise views on the pandemic’s corporate and financial fallout. LVMH holds onto the luxury of cash, cutting its dividend; L’Oréal makes the best of lockdowns with more than 50% growth in e-commerce sales in the first quarter; and even Covid-19 fails to trigger pandemic bonds.

TSMC sits uncomfortably on U.S.-China tech fence

19 Feb 2020

The $280 bln Taiwanese company has benefitted from being everyone’s friendly chipmaker. Now the White House is mulling curbs targeting TSMC’s business with China’s Huawei. The financial hit looks manageable, but rising political pressure to pick sides will be a bigger threat.

Consumer wallets are top risk to chip titan TSMC

14 Jan 2020

A heady valuation multiple for Taiwan's $295 bln supplier to Apple, Huawei and others reflects its relentless march on rivals. Rising retail prices for ever-fancier smartphones, though, may curb demand. That’s possibly the biggest risk for the tech supply chain’s sturdiest player.

Osram hedge-fund latecomers face a rude awakening

9 Dec 2019

Austria’s AMS has won its battle for the German lighting group, after receiving sufficient backing from the latter’s army of speculators. Even more hedge funds are betting that quirky domestic M&A rules will help them secure a higher exit price. But that wager could yet go wrong.

Osram M&A traps hedge funds in prisoner’s dilemma

3 Dec 2019

Speculators now own up to 45% of the German lighting group. If they can be enlightened enough to work together, there’s a way to make would-be acquirer AMS pay more than $5 bln. But if they revert to self-interested type, the deal will fall through and they will all lose money.

Super Mario turbo-charges case for Sony breakup

29 Oct 2019

Shares of $45 bln Nintendo have gained 30% this year, partly thanks to a mobile hit featuring its iconic plumber. A richer valuation should also be an inspiration to sprawling rival Sony. Separating its video-games and entertainment business could be one way to narrow the gap.

Osram sequel risks Pyrrhic victory for AMS

21 Oct 2019

The Austrian sensor maker launched another bid for the German lighting group. Though the 4.5 bln euro price is the same, a lower acceptance threshold improves its chances of success. But if AMS can’t take control of the remaining shares later, it may struggle to pay down debt.

AMS has tricky route out of M&A cul-de-sac

15 Oct 2019

The Austrian sensor maker has no good options after its failed bid for lighting group Osram. But German regulators have given it a least-bad exit via a sneaky loophole. It’s not perfect but is better than selling down its Osram stock at a loss or ditching its strategic ambitions.

The Exchange: Matthew Putman

30 Sep 2019

The factory floor may be an odd place to find a musical virtuoso. But the founder of Nanotronics, a near-unicorn on the Brooklyn waterfront with Peter Thiel on its board, is as comfortable tinkling the ivories as he is tinkering with the complexities of process automation.

iPhones keep ringing for Taiwan’s TSMC

18 Jul 2019

Quarterly earnings at the $213 bln contract chipmaker fell to $2 bln, capping a dismal first half. New models from Apple should mean a better end to 2019, though. TSMC's growing heft in the market for cutting-edge semiconductors suggests smartphones can power a stable recovery.