Semiconductors

Capital Calls: Turkey, Nintendo/Sony, India IPO

10 May 2022

Concise views on global finance: President Erdogan makes another ham-fisted monetary intervention; the Switch maker weathers supply chain ructions better than its larger rival; New Delhi needs to be even more generous in its landmark listing of Life Insurance Corp of India.

Arm IPO bankers will struggle to tell growth story

29 Apr 2022

Owner SoftBank is picking advisers for what CEO Masayoshi Son calls the most significant float in the chip industry’s history. A boost from 5G phones and data-centre demand may lure growth-hungry investors. But that won’t be enough to justify a mooted $60 bln valuation.

U.S. services have better China lockdown defenses

15 Mar 2022

Chinese lockdowns spell new supply disruptions for firms like Apple and higher prices. Surging inflation is already hurting consumers. But services, like restaurants and travel, will be more resilient than during the pandemic, thanks to $2.6 trln of excess household savings.

Toshiba gets its own taste of investor impatience

8 Mar 2022

The Japanese conglomerate has urged chipmaker Kioxia and majority owner Bain to revive an IPO as quickly as possible. It’s eager to cash in a 41% stake as Toshiba’s own aggrieved shareholders push back on a breakup plan. At least the buyout shop will prioritise maximising value.

Russia is dry run for bigger China sanctions test

25 Feb 2022

The threat of penalties didn’t stop Vladimir Putin from invading Ukraine. Sanctions would have even less chance of preventing China from taking control of Taiwan. The deeper the trade ties, the greater the chance of self-harm. And China has a head start in creating workarounds.

Capital Calls: Ukraine/chips, Lloyds

24 Feb 2022

Concise views on global finance: Russia’s invasion could exacerbate the semiconductor shortage; New Chief Executive Charlie Nunn wants to boost the 34 bln pound British bank’s fee income, but the bigger prize may come from rising rates.

Intel’s Tower deal comes up strategically short

15 Feb 2022

The $200 bln chipmaker has many problems to solve. A $5.4 bln acquisition of an Israeli rival shows there are no easy answers. Tower brings key skills and industrial applications, but Intel’s tech still lags. And even tiny chip deals risk taking heaps of time and effort to close.

Viewsroom: Spotify, Peloton and failed chip deals

10 Feb 2022

Neil Young’s podcast protests have shone a light on a potential flaw in Spotify’s business model, says Liam Proud. Peloton highlights the danger of giving company founders too much voting power, Rob Cyran argues. And semiconductor M&A gives global antitrust regulators agita.

Arm IPO marks sober end to SoftBank chip party

8 Feb 2022

Under pressure from competition authorities, Nvidia dropped its deal to buy the UK chip designer from Masayoshi Son’s group. Arm’s sensitive position makes a listing the only realistic option. But Son will probably need to accept a valuation below the $32 bln he paid in 2016.

Capital Calls: Continental, Harley-Davidson

8 Feb 2022

Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.

Failed deals illuminate red lines for chip buys

8 Feb 2022

The regulatory foiling of UK-based Arm and Germany's Siltronic, foreign takeovers worth $45 bln on announcement, says more about scarce tech than the prospects for industry consolidation. Humdrum mergers remain a useful way for companies to ride out the global chip crisis.

Capital Calls: Julius Baer, Siltronic

2 Feb 2022

Concise views on global finance: A slip in the Swiss wealth manager’s shares is an incentive for M&A sooner rather than later; strong results suggest the German wafer maker can expand despite Berlin’s failure to approve a 4.4 bln euro takeover by Taiwan’s GlobalWafers.

Apple supply shortages are a good problem to have

27 Jan 2022

Tech investors fear the pandemic pulled forward demand, especially for cloud-based companies. The $2.6 trln Apple has the opposite issue. Covid-fueled supply-chain woes have prevented it from satiating iPhone demand. Customer loyalty probably means these sales will come later.

Capital Calls: Blackstone, German chips, Guy Hands

27 Jan 2022

Concise views on global finance: The $140 bln group braces for falling asset values and rising interest rates; Berlin sends the wrong signal by ignoring a 4.4 bln euro offer for wafer maker Siltronic; Britain seeks to reverse the financier’s lucrative 1996 housing deal.

The Exchange: Xpeng boldly goes

18 Jan 2022

The Chinese electric-car maker has navigated everything from shrinking subsidies to Covid-19. Embracing new ways of working is critical, President Brian Gu tells Katrina Hamlin. Future forays into Europe, the metaverse and flying cars will test the Tesla rival’s resilience again.

Taiwan’s TSMC is wisely cashing in more chips

13 Jan 2022

The $620 bln top chipmaker is hiking prices in response to the global shortage, giving up some of its relative restraint versus competitors. Coupled with voracious demand from the likes of Apple, the increase will pad profits even as it ramps up spending to maintain its huge tech lead.

Detroit automakers need the iPhone playbook

10 Jan 2022

The global chip shortage has left GM, Ford and others short of parts to build their cars. The pandemic is only partly to blame. Automakers, which often rely on intermediaries to specify and source components, also need to imitate Apple and get hands-on with their supply chains.

Southeast Asia still loves New York

10 Jan 2022

While U.S.-listed Chinese companies move home, Indonesian and Vietnamese startups are eyeing a berth in the Big Apple. Unlike their northern peers, these hopefuls are starting with home floats. Ensuring IPOs fill local coffers first is good politics and makes financial sense too.

Samsung tech prowess drained by governance woes

7 Jan 2022

Operating profit at the maker of microchips and Galaxy phones is set to hit a four-year high of $11.5 bln. Despite the dominance, it trades at a discount to Apple and TSMC. A recent management shakeup provides a chance to tidy up the leadership mess and boost shareholder returns.

Viewsroom: Some of our 2022 predictions, Part One

23 Dec 2021

Look for an end to the cult of revenue and another milestone for Microsoft. As net-zero efforts falter, investors ready a Plan B. Riyadh becomes strangely appealing. The World Cup pays dividends for the Gulf. And chips become Taiwan’s green calling card. Our columnists explain.