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☆ China challenges US chip curbs at WTO, citing ‘trade protectionism’
▼ + stars: | 2022-12-13 | by ( Laura He | ) edition.cnn.com time to read: +4 min

On October 7, the Biden administration unveiled a sweeping set of export controls that ban Chinese companies from buying advanced chips and chip-making equipment without a license. The commerce ministry blasted the US move as threatening global supply chain stability and called it “a typical practice of trade protectionism.” The complaint is the first action China has taken at the global trade body against the US chip sanctions. It also comes as the United States is looking to bolster its domestic chip manufacturing abilities, after chip shortages earlier in the pandemic highlighted the country’s dependence on imports from abroad. He called for both countries to boost cooperation in high-tech manufacturing and avoid “the politicization of economic and trade issues.”Chips are a growing source of tension between the United States and China. Before the October sanctions, the US government had already banned sales of certain tech products to specific Chinese companies, such as Huawei.

Starting with the Trump administration, the United States has been tightening the noose around China's high-tech ambitions. But why worry about older chip technology? “28 nanometer” refers to a chip technology commercially used since 2011. But it is a giant in older technology, including chips that regulate power flows in electronics. The importance of older chip technology hit the industry in the face in 2021 as a shortage of those chips prevented manufacturing of millions of cars and consumer electronics.

☆ India and Vietnam could benefit as chipmakers shift away from China
▼ + stars: | 2022-12-13 | by ( Weilun Soon | ) www.cnbc.com time to read: +5 min

Yuichiro Chino | Moment | Getty ImagesU.S. curbs on chip exports to China are the latest shakeup prompting companies to consider moving some of their chipmaking capabilities to nearby Vietnam and India. In October, the U.S. began requiring companies to obtain licenses to export advanced semiconductors or related manufacturing equipment to China. Shift from China to AsiaThe curbs are the latest in a series of upheavals for the $600 billion global semiconductor industry. China firmly in the leadDespite Asia's rising attractiveness for chipmakers, experts point out that China still maintains a lead over regional economies in terms of its competitiveness in chipmaking. In its "Made in China 2025" blueprint released in 2015, the country laid the groundwork for technological self-sufficiency in chipmaking.

☆ India is trying to become the new factory of the world, but it could take more than a global pandemic to unseat China from its 40-year reign
▼ + stars: | 2022-12-12 | by ( Huileng Tan | ) www.businessinsider.com time to read: +7 min

But it isn't easy to fully replace China's supply chain ecosystem in any country — even one as vast as India. "India has a large labor pool, a long history of manufacturing, and government support for boosting industry and exports. Data irregularities improved China's position in 2018, according to a World Bank audit published in December 2020. India also has a history of protectionism, which makes it less competitive in terms of attracting large investments. That's precisely because they want to diversify, from having dependency on one country, like China, to a couple of locations."

We're selling 150 shares of Cisco Systems (CSCO) at roughly $49 each. In addition, we are selling 75 shares of Qualcomm (QCOM) at roughly $121 each. To be fair to Cisco, the quarter was a clean revenue and earnings-per-share beat, with a raise to the full-year outlook. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ U.S. lawmakers ease planned curbs on Chinese chips amid corporate pushback
▼ + stars: | 2022-12-07 | by ( Alexandra Alper | ) www.reuters.com time to read: +5 min

The final version no longer forbids contractors from "using" the targeted chips and pushes the compliance deadline back to five years from the immediate or two-year implementation deadlines included in the first version. Chips made by SMIC are commissioned by companies all over the world and can be found in products as diverse as cell phones and cars. They are difficult to identify because chips are not typically labeled with the names of the companies that manufacture them. Lawmakers released a final version of the NDAA Tuesday night. Schumer's office, SMIC, YMTC, CXMT and the Chamber of Commerce did not respond to requests for comment.

☆ U.S. lawmakers ease proposed curbs on Chinese chips amid corporate pushback
▼ + stars: | 2022-12-06 | by ( Alexandra Alper | ) www.reuters.com time to read: +4 min

Chips made by SMIC are commissioned by companies all over the world and can be found in products as diverse as cell phones and cars. They are difficult to identify because chips are not typically labeled with the names of the companies that manufacture them. Lawmakers are expected to announce final language for the final package later this week, which may include the revised measure. SMIC, YMTC and CXMT, the Chinese Embassy in Washington and the Chamber of Commerce did not immediately respond to requests for comment. SMIC was blacklisted by the Trump administration over concerns the company aids the Chinese military.

[1/2] U.S. President Joe Biden delivers remarks about the student loan forgiveness program from an auditorium on the White House campus in Washington, U.S., October 17, 2022. The investment is a big win for Biden after supply-chain issues disrupted the U.S. economy early in his presidency. They will attend a "tool-in" ceremony, which is the symbolic moving of the first equipment onto the shop floor of the new $12 billion facility. The $52.7 billion "Chips and Science" act, signed by Biden in August, is aimed at preventing a resurgence of supply-chain woes. Biden's victory in Arizona in the 2020 presidential election helped catapult him to the White House after Republican Donald Trump won the state in 2016.

☆ A globally critical chip firm is driving a wedge between the U.S. and Netherlands over China tech policy
▼ + stars: | 2022-12-05 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +4 min

The U.S. has been putting pressure on the Netherlands to block exports to China of high-tech semiconductor equipment. The Netherlands is home to ASML, one of the most important companies in the global semiconductor supply chain. Instead, it makes and sells $200 million extreme ultraviolet (EUV) lithography machines to semiconductor manufacturers like Taiwan's TSMC. ASML has not been able to ship an EUV machine to China since 2019 due to various Dutch export restrictions, according to a company spokesperson. According to a Reuters report from 2020, the Dutch government withdrew ASML's license to export its EUV machines to China after extensive lobbying from the U.S. government.

☆ The chip shortage could be just about done pummeling the auto industry, experts say — so cars may get a whole lot cheaper in 2023
▼ + stars: | 2022-12-05 | by ( Alexa St. John | ) www.businessinsider.com time to read: +2 min

The chip shortage has been hurting the auto industry for more than two years. The chip shortage has pummeled the global auto industry for years, depressing dealership inventory levels and driving up new and used vehicle prices. Since 2020, auto companies have sacrificed production levels and valuable features like heated seats, while prioritizing money-making vehicles. In 2021, automakers built 3.23 million fewer vehicles than expected in North America because of the chip shortage. Next year's potential chip shortage respite could bring relief to car shoppers if inventory levels recover, pushing down prices.

☆ When the chips go up: Big banks bet on S. Korea, Taiwan stocks for 2023
▼ + stars: | 2022-12-01 | by ( Harish Sridharan | ) www.reuters.com time to read: +5 min

Goldman Sachs says South Korean stocks are the bank's top "rebound candidate" for 2023 due to low valuations, made cheaper by a nosediving Korean won, and as companies benefit from an expected recovery in Chinese demand. "We think (Korean stocks) sold off too much in September and August." Morgan Stanley downgraded its view on Indian exposure in October, when it upgraded its recommendation for South Korea. Like South Korea, Taiwan (.TWII) is another heavily-sold and chip-maker dominated market - though tensions with China make some investors a bit less enthusiastic. Meanwhile, Taiwan and South Korea are both geopolitical flashpoints - but analysts argue at least some of that is already in the price.

☆ Report warns U.S. chip design market share to plunge without government support
▼ + stars: | 2022-11-30 | by ( Jane Lanhee Lee | ) www.reuters.com time to read: +2 min

The U.S. share of chip design revenue has been slipping in recent years, dropping to 46% in 2021 from over 50% in 2015. The United States has already lost its lead in chip manufacturing, prompting the Biden administration to pass the CHIPS and Science Act this year. An earlier report by SIA and BCG in 2020 showed the U.S. share of modern global chip manufacturing capacity had fallen to 12% by that year, down from 37% in 1990. The report also said government support is helping companies in countries like China and South Korea to gain market share in chip designing as well. It said federal investment in semiconductor design and R&D of $20 billion-$30 billion through 2030, including a $15 billion-$20 billion investment tax credit for chip design, would be needed to maintain U.S. leadership in the long-run.

☆ Toyota's Oct global vehicle production up 23%, above its target
▼ + stars: | 2022-11-29 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Nov 29 (Reuters) - Toyota Motor Corp (7203.T) reported on Tuesday a 23% rise in October global vehicle output, beating its own target for a third month in a row, as the industry strives to get past persistent chip shortages that have hobbled production. The Japanese automaker produced 771,382 vehicles globally in October, above a downgraded target of 750,000 units and up 23% from the same month a year earlier. Earlier this month Toyota cut its annual output target, as it battles surging material costs and a persistent chip shortage. Toyota expects to produce 9.2 million vehicles this fiscal year ending March 2023, down from the previous forecast of 9.7 million but still ahead of last finacial year's production of about 8.6 million units. Reporting by Satoshi Sugiyama; Editing by Muralikumar Anantharaman and Edmund KlamannOur Standards: The Thomson Reuters Trust Principles.

☆ Nexperia and Elmos cases show how the US-China chip war is spilling over to Europe
▼ + stars: | 2022-11-25 | by ( Michelle Toh | ) edition.cnn.com time to read: +10 min

Last week, the new owner of Britain’s biggest chipmaker was ordered to unwind its takeover, just days after another chip factory sale was blocked in Germany. “These decisions mark a shift towards tougher stances regarding Chinese investment in critical industries in Europe,” said Xiaomeng Lu, director of geo‑technology at Eurasia Group. A worker in a clean room for silicon semiconductor wafer manufacturing at the Newport Wafer Fab, owned by Nexperia, in Newport, Wales on Aug. 18. A company sign of Elmos Semiconductor, seen on Nov. 9 in the German city of Dortmund. Both Britain and Germany have recently added rules that expand government oversight over such decisions, making outcomes harder to predict.

☆ EU countries back billion-euro chip plan ahead of talks with lawmakers
▼ + stars: | 2022-11-23 | by ( Foo Yun Chee | ) www.reuters.com time to read: +2 min

EU envoys unanimously backed an amended version of the European Commission's proposal, the Czech Republic which holds the rotating EU presidency said. European Union ministers will meet on Dec. 1 to rubber stamp the chip plan that will still need to be debated with the European Parliament next year before it can become law. Europe's share of chip production stands at 8%, down from 24% in 2000. EU countries also sought to curb the powers of the Commission, the EU executive, saying its requests to companies for information during a crisis must be proportionate and security-focused, an EU document seen by Reuters showed. The Commission had earmarked money from research programmes and unspent funds from other schemes, drawing criticism from some EU countries that this could unfairly benefit countries that already have chip facilities or are set to attract chipmakers.

☆ 5 Club stocks that did worse than the Nasdaq since year-ago record but are well-liked by analysts
▼ + stars: | 2022-11-23 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +8 min

It turns out the tech-heavy index peaked on Nov. 22, 2021, one session after its last closing record. Using the one-year anniversary of the Nasdaq's record , we wanted to see where Wall Street stands on the 13 Nasdaq-listed stocks in the Club portfolio. From here, though, 72.7% of the 44 analysts who cover the stock consider the stock a buy or buy equivalent. Facebook-parent Meta Platforms was the worst-performing Club stock in the Nasdaq since its 2021 peak. Conversely, the vast majority of analysts — 90.4% to be exact — have a buy or buy-equivalent rating on Microsoft shares.

☆ Jim Cramer says these 10 tech and software stocks can make a comeback
▼ + stars: | 2022-11-22 | by ( Krystal Hur | ) www.cnbc.com time to read: +1 min

CNBC's Jim Cramer on Tuesday named hammered tech stocks that he believes can make a comeback after the Federal Reserve finishes tightening the economy. Tech stocks plummeted this year after climbing to stratospheric levels during the height of the pandemic. Persistent inflation, the Fed's rate hikes, Covid-19 lockdowns in China and Russia's invasion of Ukraine drove investors out of risky tech stocks and into safer bets. Cramer explained that focus on the dot-com collapse belies the stocks that may survive this period of economic downturn. Cramer also predicted that there are many pandemic plays that likely won't recover from this year's challenges.

☆ Chipmakers respond to U.S. export controls and macro conditions
▼ + stars: | 2022-11-18 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChipmakers respond to U.S. export controls and macro conditionsCNBC's Kristina Partsinevelos joins 'TechCheck' to discuss Applied Materials coming off highs after earnings, the concerns related to U.S. export trade restrictions in China and Intel's Sandra Rivera on the macro environment pressures on chip producers.

☆ Shares and pound splutter as UK dishes out budget gruel
▼ + stars: | 2022-11-17 | by ( Marc Jones | ) www.reuters.com time to read: +6 min

[1/3] Pound and Dollar banknotes are seen in this picture illustration taken June 13, 2017. Pound and UK Gilt recover from 'mini budget' turmoilOvernight in Asia, grim signals from Micron Technology about excess inventories and sluggish demand sent chipmaker stocks sprawling. Mainland Chinese shares also wobbled, with blue chips there (.CSI300) falling 0.5% having ripped 10% higher this month. Traders will also scrutinise speeches from Fed officials on Thursday for hints about rate hikes. Crude oil steadied in Europe after settling more than a dollar lower overnight, following the resumption of Russian oil shipments via the Druzhba pipeline to Hungary and as rising COVID-19 cases in China weighed on sentiment.

☆ Applied Materials forecasts strong Q1 revenue on easing supply chain woes
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

Nov 17 (Reuters) - Chip tools maker Applied Materials Inc (AMAT.O) forecast first-quarter revenue above market estimates on Thursday, on hopes that easing supply chain constraints will help it meet pent up demand from chipmakers ramping up production. Shares of the Santa Clara, California-based company rose nearly 3% in trading after the bell. The company posted revenue of $6.75 billion for the fourth quarter ended Oct. 30, compared to analysts' average expectation of $6.45 billion, according to Refinitiv IBES data. The company forecast current-quarter revenue of $6.70 billion, plus or minus $400 million, compared with analysts' average estimate of $6.45 billion. Applied said the outlook includes expected impact of recently announced U.S. export regulations and ongoing supply chain challenges.

☆ Matt Quinlan's high-dividend stock funds hold more than $20 billion in investor assets. The Franklin Templeton vet told us where he finds innovators that can deliver big returns.
▼ + stars: | 2022-11-17 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

Historically, big dividend payments have been associated with just a couple of stock market sectors. Franklin Templeton fund manager Matt Quinlan says that's changed in recent years. But inflation and interest rates were extremely low during that period, and it seemed like the growth and spending could go on forever. In a market like today's that's defined by higher interest rates and inflation, which erode returns over time, a solid dividend yield can give buyers a real leg up. He's also run its $24.3 billion Rising Dividends Fund for three years, and its results have been particularly strong across his tenure.

☆ Nexperia-Newport Wafer: UK orders Chinese-owned company to sell Britain's biggest chipmaker
▼ + stars: | 2022-11-17 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN Business —The UK government has ordered a Chinese-owned company to unwind its takeover of Britain’s biggest chipmaker, citing national security concerns. Last week, the German government blocked the sale of a semiconductor factory to a Chinese-owned tech firm, citing national security concerns. “Nexperia does not accept the potential national security concerns raised,” it said. Newport Wafer bills itself as the UK’s largest semiconductor facility, making more than 35,000 wafer starts a month. It obtained full ownership of the Newport site in July 2021, after previously working with its former owners as a customer and as its second largest shareholder.

☆ Micron to supply fewer memory chips in 2023, plans fresh capex cuts
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +2 min

Micron was the first major chipmaker to sound an alarm about falling demand for personal computers and smartphones earlier this year in the face of decades-high inflation. "In order to significantly improve total inventory ... DRAM bit supply will need to shrink and NAND bit supply growth will need to be significantly lower than previous estimates," the company said. Widespread supply and capex cuts typically denote a bottom for the memory industry and is a good sign, Wedbush Securities analyst Matt Bryson wrote in a note on Wednesday. But he said there is potential for a longer demand trough that would likely weigh on the broader technology space. For 2023, the company expects its year-on-year bit supply growth to be negative for DRAM and in the single-digit percentage range for NAND.

REUTERS/Brendan McDermid/File PhotoSummarySummary Companies October retail sales rise more than expectedTarget's dull outlook weighs on retailersMicron's supply cut triggers chip selloffIndexes: Dow up 0.05%, S&P down 0.51%, Nasdaq down 1.10%Nov 16 (Reuters) - The S&P 500 and Nasdaq fell on Wednesday as a grim outlook from Target spurred fresh concerns for retailers heading into the crucial holiday season, while Micron's supply cut triggered a selloff in the chip sector. Target Corp (TGT.N) tumbled as much as 17% in early trading as a pullback in consumer spending despite heavy discounting cut its third-quarter profit by half. Despite the sales warning from Target, data showed U.S. retail sales increased more than expected in October, boosted by purchases of motor vehicles and suggesting that consumer spending remained stable. Declining issues outnumbered advancers for a 1.73-to-1 ratio on the NYSE and for a 2.23-to-1 ratio on the Nasdaq. The S&P index recorded three new 52-week highs and two new lows, while the Nasdaq recorded 50 new highs and 104 new lows.

☆ TSMC stock surges after Warren Buffett's company buys $4 billion stake
▼ + stars: | 2022-11-15 | by ( Diksha Madhok | ) edition.cnn.com time to read: +2 min

New Delhi CNN Business —Shares of Taiwan Semiconductor Manufacturing Company surged on Tuesday after Warren Buffett’s Berkshire Hathaway disclosed that it had purchased a $4.1 billion stake in one of the world’s largest chipmakers. Shares of TSMC were up over 8% in Taiwan on Tuesday. “TSMC welcomes all investors with the propensity to buy and hold TSMC’s stock,” a spokesperson for the chipmaker said. TSMC accounts for an estimated 90% of the world’s super-advanced computer chips, supplying tech giants including Apple (AAPL) and Qualcomm (QCOM). Experts fear that these controls could shift the tech arms race between the United States and China to a whole new level.

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