Capital Calls: Apollo, god of basically everything 19 Oct 2021 Concise views on global finance: The asset manager firm’s new CEO Marc Rowan wants to oversee $1 trillion in funds by 2026. The market is at least giving him credit for trying.
GlobalFoundries is no chip off the TSMC block 5 Oct 2021 The Abu Dhabi-owned chip manufacturer has filed for a U.S. IPO. It has tailwinds thanks to industry capacity shortages and Western countries’ desire to produce semiconductors at home. But it’s plagued by persistent losses and a reported $25 billion valuation looks a stretch.
Europe’s chip champion can weather tech cold war 30 Sep 2021 ASML, which supplies machines to semiconductor makers, expects sales to grow 11% a year for a decade. That’s key to the Dutch company’s $310 bln market value. Despite restrictions on exports to China, countries seeking to secure chip supplies will provide an extra boost.
Alphawave crash exposes fragility of UK tech hype 30 Sep 2021 The chip designer’s market value halved after a media report raised fears about related party transactions. Its punchy $4 bln IPO in May was a high point of London’s push to attract startups. Even then, a reliance on a handful of customers left a worryingly thin margin for error.
Chip investment boom is just getting started 8 Sep 2021 Intel’s plan to invest up to $95 bln in Europe is the latest sign that the race is on to address global semiconductor shortages. Capital expenditure has risen, especially at giants like TSMC and Samsung Electronics, but is still short of the splurges that triggered past gluts.
Xiaomi is primed to scale Mount Microchip 26 Aug 2021 The $82 bln Chinese company shipped 53 mln handsets in the second quarter, overtaking Apple to become the world’s No. 2 producer behind Samsung. With greater heft, boss Lei Jun’s ambitions in semiconductors should be within reach soon. Favourable policies from Beijing will help.
Capital Calls: Amazon, Robinhood, GlobalFoundries 19 Aug 2021 Concise views on global finance: The e-commerce giant may open its own version of department stores; contrary to the stereoptype, Robinhood IPO buyers may be holding rather than flipping; a successful IPO by chipmaker GlobalFoundries would bolster the case for an Arm listing.
Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS 5 Aug 2021 Concise views on global finance: The Covid-19 vaccine maker is looking past the pandemic; the telecoms group is offering $4.6 bln for Veoneer; U.S. Democrats are trying to close the carried-interest loophole; ViacomCBS is betting "South Park" can boost its streaming service.
European tech titans’ sweet spot may turn sour 21 Jul 2021 Both $300 bln ASML and $170 bln SAP upped their revenue-growth projections. They’re riding trends like soaring demand for chips and cloud computing. But much of the good news is already priced in to their expensive shares. The next surprise for investors may be less encouraging.
Capital Calls: BBQGuys go easy on the hot sauce 20 Jul 2021 Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.
Capital Calls: Intel, SPAC lobby 16 Jul 2021 Concise views on global finance: Buying GlobalFoundries would boost Intel’s ambitions to make chips for other firms, but spinning it off afterward might please investors more; a new D.C. group sets up shop to defend the blank-check craze.
Taiwan’s top diplomat is a $567 bln chipmaker 15 Jul 2021 Tensions between Beijing and the self-ruled island are spiking amid vaccine squabbles and fighter jet sorties. Enter TSMC, whose economic and geopolitical clout has risen amid the semiconductor shortage. It could be Taipei’s best political advantage against a hostile neighbour.
China chip crash helps fine-tune tech policy 14 Jul 2021 Lavish government funds fuelled the rapid expansion of semiconductor darling Tsinghua Unigroup. It now faces bankruptcy with $31 bln of debt piled up. Letting it fail reflects Beijing's new, more selective strategy of developing industry champions. It may yield better results.
UK credibility on China inward M&A gets wafer-thin 8 Jul 2021 Britain’s government initially declined to review Chinese-owned Nexperia’s $87 mln deal to buy the country’s largest semiconductor plant. It has now U-turned, which makes sense given the world chip shortage. But the mixed messages hardly inspire confidence in the process.
Blocked Nvidia-Arm M&A would hit SoftBank hard 8 Jun 2021 CEO Masayoshi Son agreed to sell his chip designer to the U.S. giant for $40 bln. If governments or competition authorities scupper the deal, an IPO would be the obvious Plan B. Based on sector valuations, $20 bln may be a realistic public price tag, landing SoftBank with a loss.
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.