Semiconductors

Nvidia’s crypto-turned-AI excitement is promising

27 Mar 2023

The $670 bln chipmaker’s CTO Michael Kagan said crypto collapsed because it wasn’t useful for society. But AI is, and chip sales for digital currency mining can be replaced by AI. It’s not only a safer bet. Nvidia’s well placed to capture a big chunk of its ballooning growth.

Seoul and Tokyo demonstrate chip war limits

16 Mar 2023

Japan may ease curbs put on high-tech materials exports to South Korea after a four-year diplomatic spat. The impact was minimal; companies like Samsung found easy workarounds. The United States and China face similar difficulties decoupling sophisticated supply chain links.

Make-in-India dials up a tycoon premium

6 Mar 2023

Foxconn is leading a charge by foreigners to team up with local giants including Tata and Vedanta. Such partners can help cut red tape and tap subsidies, freeing up incoming manufacturers to focus on boosting production quality. For now, it is a win-win for those scaling up fast.

Overlong arms of law grip chipmakers and Disney

28 Feb 2023

Joe Biden is attaching childcare and profit-sharing strings to $39 bln of U.S. funding for semiconductor companies. Meanwhile, Florida’s governor has taken new power over Magic Kingdom theme parks. The mission creep in both cases sets unpleasant precedents for corporate America.

Capital Calls: Schneider’s sustainable CEO

16 Feb 2023

Concise views on global finance: Jean-Pascal Tricoire’s departure as chief executive of the French industrial software group after nearly two decades at the helm defies the trend of short-lived or underperforming corporate bosses.

Intel points cost-cutting laser in wrong direction

1 Feb 2023

Turning around the embattled $117 bln chipmaker requires capital and an inspired workforce. Slashing managerial pay by 5%-15% will save money, but risks demoralizing staff and losing the best of them. Suspending a $6 bln dividend would conserve cash in a more effective way.

Capital Calls: TikTok’s Beltway visit

30 Jan 2023

Concise views on global finance: The social media app’s CEO Shou Zi Chew is going in front of a U.S. Congressional committee. But it’s leaders outside of Washington that Chew needs to convince.

Intel is becoming accidental ad for friendshoring

27 Jan 2023

With plunging fourth-quarter sales and profitability, the U.S. firm may fall further behind Taiwanese rival TSMC in technology and manufacturing prowess. Intel has strategic value to a White House keen to promote U.S. chipmaking, but there are other ways to achieve that goal.

Rough chip waters give ASML little room for error

25 Jan 2023

The Dutch giant expects sales to grow by a chunky 25% in 2023. Clients’ fear of missing out on an economic rebound is propping up demand for its equipment. Yet rising costs and the risk of a widening export ban to China may take the shine off the $264 bln group’s rich valuation.

Emerson’s hostility tests aggressive M&A tools

17 Jan 2023

Disclosing its unsolicited $6.9 bln offer for NI ends a quiet eight-month standoff. Going public forces the issue, but along with the target’s strategic review also inflates the price. A bid battle threatens the potential value of a deal and may inform takeover tactics elsewhere.

Capital Calls: Prices down, jobs saved?

12 Jan 2023

Concise views on global finance: New data shows U.S. prices falling 0.1% in December, marking the largest drop since early 2020. With inflation in retreat, the Fed can focus more on keeping Americans employed.

Chip mergers are more urgent and awkward in 2023

5 Jan 2023

Western Digital has revived talks with Japan's Kioxia after efforts for a $20 bln deal stalled in 2021. Price wars plague sales of semiconductors storing data and M&A can help as demand plunges. The duo will have to be creative to convince politicians fretting about chip wars.

Chip dilemma will buy Beijing precious time

19 Dec 2022

America is pushing Asian and European allies to stifle semiconductor progress in China. But antagonising the $466 bln market will be costly for South Korea's Samsung and Dutch ASML as global demand slows. Their hesitancy to fully embrace the blockade will benefit Beijing.

China’s chip suppliers have some growing up to do

14 Dec 2022

Beijing is readying a $144 bln fiscal package aimed at supporting its equipment makers that are woefully behind Dutch and Japanese rivals like ASML. A combination of targeted subsidies and local demand will help. But catching up will be a years-long, if not decades-long, slog.

Friendshoring makes sense if done in the right way

5 Dec 2022

The United States and its allies want to build up suppliers of goods such as solar panels in friendly countries so they’re not vulnerable to Chinese disruptions or blackmail. To avoid self-harm they should define friends broadly and not attack China economically, says Hugo Dixon.

Capital Calls: Nexperia’s UK woes

17 Nov 2022

Concise views on global finance: The British government’s order to the Chinese group to sell its Welsh chip factory may prove an empty gesture without a plan to go forward.

Buffett places classic chips in $4 bln Taiwan bet

15 Nov 2022

His Berkshire Hathaway now owns 1.2% of TSMC. The semiconductor giant’s stock has taken a beating this year, in part on fear China might invade Taiwan, its HQ. But the company has a near-monopoly in cutting-edge tech. Such traits have long appealed to the Oracle of Omaha.

America throws South Korean chipmakers for a loop

28 Oct 2022

Samsung and SK Hynix dominate the memory market and can adjust output to protect profits as demand falls. But that flexibility will be eroded under Washington's export curbs against China, where the pair have factories. It's an example of the unforeseen effects from the tech war.

Capital Calls: TSMC

13 Oct 2022

Concise views on global finance: The $324 bln Taiwan Semiconductor Manufacturing barely addressed questions regarding U.S. technology export controls on China during its earnings call.

U.S. high-tech chip curb risks lower-tech blowback

11 Oct 2022

Washington’s export controls hinder China from developing advanced semiconductors needed for supercomputers and the like. But the ban may prompt Chinese chipmakers to hasten their progress in the commoditised parts of the market, embedding firms like SMIC in global supply chains.