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.
Memory giants delay consolidation at own risk 9 Apr 2021 Selling Japan's Kioxia to a larger rival would help rationalise a sector prone to price wars and over-capacity. Regulatory risks and volatile returns may deter buyers like the $107 bln Micron. Without more scale, though, chip champions will be vulnerable to Chinese entrants.
CVC’s Toshiba bid puts a breakup on the table 7 Apr 2021 The buyout barbarians at Tokyo’s gates may be offering more than $20 bln for the conglomerate. Toshiba has been struggling amid governance issues. But its assets could collectively be worth more than double CVC’s bid. Carving up the company could give shareholders a better deal.
Chinese AI dragon confronts fiery new realities 1 Apr 2021 Megvii wants to raise over $900 mln in a Shanghai IPO after a U.S. blacklist torpedoed its 2019 Hong Kong listing. Revenue growth is slowing and losses widening, as Beijing proceeds with its own crackdowns. It also may not be the best time to have Alibaba and Ant as big backers.
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.
Microsoft hack reveals cloud pluses, cyber minuses 8 Mar 2021 Tens of thousands of organisations’ email systems were compromised by flaws in the giant’s software. It’s the second massive security problem in a few months, this time allegedly China’s doing. Fully cloud-based services were spared, but many lessons still need to be learned.
A stripped-down BYD would run faster 17 Feb 2021 The Chinese automaker’s $3.8 bln share sale tapped a craze for electric vehicles. Yet even after a 500% rally over the last year, its Hong Kong stock looks cheap next to Nio and others. Separating battery-powered cars from other businesses could be one way to narrow the gap.
Apple’s new golden goose is at risk of plucking 27 Jan 2021 The $2.4 trln tech group made $15.8 bln in revenue from services last quarter. If growth keeps up, subscriptions and such could be more profitable than the iPhone within a few years. It's also where Apple is most vulnerable to antitrust pressure from regulators and customers.
Corona Capital: Bank of America, Halliburton, NBA 19 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Bank of America’s animalistic analogies; Halliburton sees a recovery that can’t come soon enough; The New York Knicks’ valuation has its top spot to lose.
Overpayment detected in $8 bln Teledyne deal 4 Jan 2021 The $14 bln U.S. industrial conglomerate is buying rival FLIR Systems. Cost savings cover less than half of the $1.6 bln premium. Both firms sell sensors, but focus on different wavelengths, so it’s possible combining could deliver faster growth. But that’s hard to deliver.
Robots drive Hyundai from humdrum to high tech 14 Dec 2020 The South Korean carmaker is taking control of Boston Dynamics in a $1 bln deal. Seller SoftBank, which admits mechanical dogs are no cash cow, is keeping a 20% stake. That endorses Hyundai boss Euisun Chung’s ambitious vision to upgrade his autos-to-steel empire.
Baidu gets useful M&A advice from unlikely source 19 Nov 2020 Days after the Chinese search-engine operator agreed to buy a video-streaming app for $3.6 bln, short-seller Muddy Waters has accused owner Joyy of fraud. It’s a blessing in disguise. YY is losing users and lagging rivals. The allegations may give Baidu room to rethink the deal.
Microsoft can flip the antitrust script 27 Oct 2020 The software giant and the rest of Big Tech have benefited from pandemic conditions. It saw a 12% jump in revenue. But having been through the anticompetitive ringer, it’s largely escaped the current D.C. scrutiny of its rivals. That gives it an edge in focusing more on growth.
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.
Toshiba’s chip IPO could short-circuit 17 Sep 2020 Two years after the Japanese company's crown jewel was sold to a Bain-led group, the rebranded Kioxia will list at a $20 bln valuation. It offers a partial exit to the U.S. buyout firm and other backers. But aiming for a premium multiple amid choppy markets may backfire.
Nvidia’s $40 bln Arm deal is risky chess move 14 Sep 2020 The chip specialist led by Jensen Huang will buy the UK company from SoftBank in the industry's biggest deal. It gives Nvidia a boost in the data centre business. But Arm's customers and regulators may baulk, and the chunky price tag presupposes huge growth and market share gains.
SMIC selloff downplays U.S.-China trade friction 8 Sep 2020 The Hong Kong shares of the chipmaker plunged 23% on news that the White House might blacklist it. The immediate financial hit looks manageable, but long-term prospects are darkening. SMIC's still-frothy valuation hints at more volatility for the company and its peers.
Staid Microsoft gets a viral gift from TikTok 4 Aug 2020 The least cool tech giant has outperformed most of its rivals to reach a $1.6 trln value. Owning the popular video app could finally bring buzz and ad dollars. There are political risks, and buying only part of TikTok may be messy. But potential financial gains make up for it.
Sony is primed for coming game-console battle 4 Aug 2020 Quarterly operating profit at the group’s PlayStation unit blew up 68% year-on-year to $1 bln. With Sony ready to roll out a new console later this year, the momentum looks sustainable. A huge base of loyal gamers plus exclusive content gives it an edge over Microsoft.
Asia chip windfall preludes tech’s next challenge 29 Jul 2020 Shares of TSMC and Samsung have leapt on hopes Intel may outsource production. It could enlarge the contract-chipmaking market they dominate by 20%. Still, the $209 bln Intel's woes highlight the high costs of making advanced semiconductors. Finding buyers may get harder.