Semiconductors

Capital Calls: Bitcoin, Procore

20 May 2021

Concise views on global finance: Getting paid in cryptocurrencies loses allure in U.S. President Joe Biden's tax plan; the $11 bln building software firm is a bargain compared to peers.

EU chip M&A is politically sound, financially iffy

20 May 2021

Shares in $5 bln Nordic Semiconductor surged 10% on a report that Franco-Italian rival STMicroelectronics may bid for it. A deal would be a logical bet on the trend of having chips in everyday gizmos, and satisfy politicians’ urge to keep key tech in Europe. But returns look low.

Capital Calls: Disney misses the mark

13 May 2021

Concise views on global finance: Walt Disney reported nearly 104 million subscribers for its streaming flagship service.

UK chip IPO offers pricey harbour in tech squall

12 May 2021

Semiconductor design firm Alphawave IP is listing in London at $4.3 bln, even as other floats are pulled and technology stocks struggle. A lack of local peers explains the appeal. But a rich valuation means investors need to believe it can develop new products, and fresh clients.

EU boxes smart in bout with Chinese behemoths

5 May 2021

Competition tsar Margrethe Vestager wants to stop state-sponsored foreign firms from buying European rivals. It’s a good way to protect industries while resisting mergers like Siemens-Alstom. But ensuring a level playing field isn’t enough to develop high-tech sectors like chips.

Capital Calls: Peloton, Honest Co, Office Depot

5 May 2021

Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.

Capital Calls: Endeavor’s Hollywood ending

29 Apr 2021

Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.

Europe’s $36 bln chip runt is coming into its own

29 Apr 2021

Shares in Franco-Italian STMicro have lagged the soaring semiconductor sector. Now CEO Jean-Marc Chery is boosting sales targets thanks to a global shortage. And his rising market share in cars and digital everyday gizmos should help close the valuation gap with bigger rivals.

European chips champion is puzzle for M&A bankers

21 Apr 2021

The region’s leaders fret about their collective semiconductor shortcomings. An $85 bln union of Infineon and STMicroelectronics would bring heft, plus cost savings to mollify investors. The hard part is getting France and Italy to agree a structure that preserves their pride.

Everyone’s chipmaker deftly tries to please all

15 Apr 2021

A global shortage spotlights TSMC's near-monopoly in manufacturing advanced semiconductors. It's raising capex 66% as earnings soar and foreign governments lobby it to boost output. That’s a huge spending jump but the $560 bln giant has a strong track record of managing risk.

Intel’s big gamble contains contradictions

24 Mar 2021

The chip giant will spend $20 billion so that it can ramp up production of advanced chips for itself and others. This eats up cash flow and exposes a tension. Potential customers may also be rivals that don’t want the U.S. company’s new strategy to be a roaring success.

Capital Calls: Chubb/Hartford, Son of Kozmo

23 Mar 2021

Concise views on global finance in the Covid-19 era: Insurer Hartford rebuffs an offer from rival Chubb without breaking a sweat; snack-delivery outfit GoPuff raises capital at an $8.9 billion valuation, giving new life to an old Silicon Valley idea.

Capital Calls: Airline IPO, Turkey’s central bank

18 Mar 2021

Concise views on global finance in the Covid-19 era: U.S. regional air carrier Sun Country Airlines’ IPO pop is justified by positive cash flow; Turkey shows how emerging-market policymakers face trickier choices than their rich-world peers.

Three-way laser M&A loser will be winner

17 Mar 2021

Lumentum raised its offer for laser-maker Coherent to $6.9 bln, edging ahead of two rival bidders. All look to be overpaying – in Lumentum’s case by around $1 bln. Its shares have fallen as a result. Recovering some of that lost market value wouldn’t be a bad consolation prize.

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.