Foxconn stumbles in first steps away from Apple 1 Apr 2019 Weak iPhone sales dented quarterly earnings at Taiwan's $32 bln contract electronics-maker. To move up the manufacturing chain, boss Terry Gou is reviving storied brands, including Nokia. But a disastrous year at the Finnish handset unit suggests Foxconn has its work cut out.
Nvidia chip deal big on vision and price 11 Mar 2019 The $94 bln graphics-chip company’s $6.9 bln acquisition of Mellanox, which makes hardware for data centers, is a bet that data will grow rapidly, and chip speeds only slowly. That view looks solid. But the price, pumped up by competing bids, presupposes a lot of success.
Germany’s Merck chips into aggressive M&A game 27 Feb 2019 The drugs and chemicals supplier is making a hostile $5.2 bln offer for Versum, after Barrick’s $18 bln unsolicited tilt at Newmont. Both aim to nix earlier agreed deals, while Roche is injecting $4.3 bln into new tech. Recent market wobbles have not yet dulled merger mania.
Breakdown: End of Moore’s law reshapes chip market 26 Feb 2019 For decades, raw computing power increased and became cheaper at a heady pace. The death of the trend means chip producers seeking an edge must specialize or find more difficult advances. One result will be a more fragmented industry. Intel and others have their work cut out.
Money can’t buy China’s chip industry much love 19 Feb 2019 Beijing may buy more U.S. semiconductors, a tacit admission of its $100 bln struggle to make advanced ones at home. Champions such as SMIC haven’t closed the gap with rivals. While distorting policies like Made in China 2025 draw fury, it’s an open question whether they work.
TSMC’s iPhone hangup can end well 17 Jan 2019 Taiwan's $183 bln chipmaker expects revenue to fall sharply this quarter. Weak demand for mobile handsets is one problem. But the pain may be short-lived. TSMC’s cutting-edge semiconductors will help to win customers in AI and 5G. That should ease its dependence on Apple.
Apple suppliers have few tools to defy gravity 3 Jan 2019 The iPhone maker’s profit warning has hurt shares in European chipmakers like AMS. Apple can appease investors with buybacks or extra software revenue. But suppliers are in a bind. Any attempt to diversify means they will have plough cash into new ventures that may easily flop.
Chip industry’s new paradigm looks like old one 16 Nov 2018 As cutting-edge semiconductors got harder to make and demand boomed from new fields like bitcoin mining, top manufacturers seemed invulnerable. Shrinking sales forecasts from Nvidia and Applied Materials show companies are as prone as ever to economic cycles and excess inventory.
China trade-secrets case brings sanctions closer 1 Nov 2018 State-backed chipmaker Fujian Jinhua was indicted for allegedly stealing designs from U.S. rival Micron. It was already barred from buying U.S. parts, so this raises the stakes. Former President Obama mulled sanctions for industrial espionage. That idea could be in play again.
Wilbur Ross finally picks right fight with China 30 Oct 2018 Washington has put a provincial chipmaker under an embargo similar to that which crippled telecoms giant ZTE. Fujian Jinhua is accused of IP theft by Idaho-based Micron; this retaliation presumes guilt. Still, targeting smaller state-backed firms is smarter than blanket tariffs.
TSMC can withstand a worsening trade storm 18 Oct 2018 The $200 bln Taiwanese chipmaker’s quarterly profit only dipped 1 pct in a tough market. U.S.-China tensions loom, but next-generation semiconductors are helping cushion the blow. Unlike fellow Apple supplier Foxconn, TSMC is also less vulnerable to customers moving production.
Samsung is closer to maxing out memory limits 5 Oct 2018 South Korea's tech titan expects quarterly operating profit to hit a record $15 bln, thanks to an upswing in chip demand. Memory prices will probably peak by year-end, however. Slower earnings growth, and the mounting legal woes of Samsung's leaders, will test investor patience.
M&A bankers better off hunting pheasant than elk 3 Oct 2018 The value of deals above $10 bln popped by 150 pct in the first nine months of the year. Some, like Comcast’s purchase of Sky, come with chunky financing fees. Still, the glory is spread less thinly on smaller deals, which are also growing quickly, and are easier to close.
Bitmain mines for a more precious currency 3 Oct 2018 The world's top crypto equipment maker collected a third of its $2.5 bln in sales last year in bitcoin and its ilk. Converting some of it into cash has helped fund the profitable business. As prices of virtual money fall, though, raising $3 bln in an IPO would be a sweet trade.
Japan’s Renesas speeds into autonomous M&A wreck 11 Sep 2018 The Tokyo-based chipmaker is buying U.S. peer Integrated Device Technology for $6.7 bln. A promised uplift in revenue from selling self-driving and connected-car technology sounds optimistic. Even if Renesas can achieve such synergies, the return on investment barely stacks up.
NXP’s time in M&A wilderness leaves it unloved 6 Sep 2018 Qualcomm’s planned purchase left the $32 bln chipmaker in stasis for nearly two years. With the deal’s failure, its shares have fallen back to trade at a 30 pct discount to peers. NXP’s stand-alone story may be partly forgotten, but it’s well placed to hand investors a windfall.
Japanese chipmaker deal is hard to process 3 Sep 2018 Renesas Electronics is considering buying U.S. peer Integrated Device Technology, for a price that could be around $6 bln. Its last acquisition hasn’t obviously delivered and the implied return on investment of this one is just 5 pct. Small wonder that investors are skeptical.
Qualcomm is set to pitch life without NXP 25 Jul 2018 The $90 bln chipmaker’s $44 bln purchase of its rival could die on Wednesday unless Beijing gives it an 11th-hour nod. Traders seem to think that’s unlikely. Going it alone won’t be easy for Qualcomm, but in the 21 months since striking the NXP deal it has not stood still.
TSMC etches chip fortunes onto investor memories 19 Jul 2018 The $190 bln Taiwanese semiconductor maker delivered the $2 bln in quarterly earnings that was anticipated. Weak smartphone and cryptocurrency demand, as well as global trade tensions, will be a drag in the second half, though. Betting on AI and 5G should help TSMC longer-term.
Broadcom chief uses up eight of his nine lives 12 Jul 2018 With a single deal – the $19 bln acquisition of software company CA – Hock Tan has torched a reputation built through years of savvy acquisitions. Broadcom lost nearly $16 bln of market value at a stroke. Recovering from that will take time, luck and abstinence.