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☆ Buffett may have invested in TSMC too early, analyst says, predicting the best time to buy
▼ + stars: | 2022-11-15 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Legendary investor Warren Buffett may have overpaid for his latest investment in chipmaker Taiwan Semiconductor , according to one equity analyst. Buffett's Berkshire Hathaway bought more than 60 million shares of TSMC worth $4.1 billion (1.2% of TSM) in the third quarter, according to a quarterly regulatory filing . New York-listed shares in the chip stock rose 5.8% in after-hours trading to $77.08. Blank said Buffett, 92, was not as interested in buying the bottom as other investors, given Berkshire Hathaway's long-term investment horizon. The median price target of 30 analysts covering TSMC indicates a 29.8% potential upside from its share price prior to Buffett's investment, according to FactSet.

☆ Read the pitch deck the chiplet startup Eliyan used to raise $40 million from investors like Tracker, Intel, and Micron
▼ + stars: | 2022-11-15 | by ( Jacob E. Robbins | ) www.businessinsider.com time to read: +3 min

Eliyan raised a $40 million Series A round led by Tracker Capital, Intel, and Micron. Eliyan, a startup in Santa Clara, California, is making technology allowing chips to interconnect, is trying to address that problem and raised a $40 million Series A round on Tuesday led by Tracker Capital, Intel, and Micron. Since the semiconductor industry is long entrenched, Farjadrad knows convincing more big players to adopt Eliyan's technology will be important. "We created a lot of excitement in these companies," Farjadrad said. Read the 19-slide pitch deck Eliyan used to raise a $40 million Series A:

☆ What Cramer is watching Friday — Day 2 rally, China eases more Covid rules, Intel double downgrade
▼ + stars: | 2022-11-11 | by ( Jim Cramer | ) www.cnbc.com time to read: +5 min

I see Club holding Estee Lauder (EL) as a buy on China starting to ease pandemic restrictions. Club holding Nvidia (NVDA) reports its quarter next week, and there seems to be a conclusion to the glut in semiconductors. JPMorgan double downgraded Intel (INTC) to underweight from overweight (sell from buy) and cuts its price target in half to $32 per share. Citi cuts price target on Palantir (PLTR) to $5 per share from $6 on slowing growth. Mizuho cuts price target on Kimco Realty (KIM) to $22 per share from $25.

☆ ASML CEO: Would not change 2030 growth targets if China excluded
▼ + stars: | 2022-11-11 | by ( ) www.reuters.com time to read: +1 min

AMSTERDAM, Nov 11 (Reuters) - ASML Holding NV (ASML.AS), a key supplier to semiconductor manufacturers, would not change its 2030 forecasts much if Chinese chipmakers are unable to expand their capacity beyond current levels, CEO Peter Wennink told investors on Friday. Speaking at a meeting with investors, Wennink said "if the geopolitical situation is such, which I would not expect, but that, for instance China would absolutely be excluded from any growth, the demand is there. "So it doesn't change the 2030 picture that much." ASML on Thursday upgraded its long term forecasts for 2025 and 2030, saying it expects demand for its products to be strong in the coming decade. It expects sales to grow to 44-60 billion euros in 2030, from 18.6 billion euros in 2021.

☆ EXCLUSIVE Nvidia offers new advanced chip for China that meets U.S. export controls
▼ + stars: | 2022-11-08 | by ( Jane Lanhee Lee | ) www.reuters.com time to read: +3 min

OAKLAND, Calif., Nov 7 (Reuters) - U.S. chip maker Nvidia Corp (NVDA.O) said on Monday it is offering a new advanced chip in China that meets recent export control rules aimed at keeping cutting-edge technology out of China's hands. In late August, Nvidia and Advanced Micro Devices Inc AMD.O both said that their advanced chips, including Nvidia's data center chip A100, were added to the export control list by the Commerce Department. The Nvidia A800 can be used in place of the A100, and both are GPUs, or graphics processing units. "The Nvidia A800 GPU, which went into production in Q3, is another alternative product to the Nvidia A100 GPU for customers in China. At least two Chinese websites by major server makers offer the A800 chip in their products.

☆ Exclusive: Nvidia offers new advanced chip for China that meets U.S. export controls
▼ + stars: | 2022-11-08 | by ( Jane Lanhee Lee | ) www.reuters.com time to read: +3 min

OAKLAND, Calif., Nov 7 (Reuters) - U.S. chip maker Nvidia Corp (NVDA.O) is offering a new advanced chip in China that meets recent export control rules aimed at keeping cutting-edge technology out of China's hands, the company confirmed on Monday. In late August, Nvidia and Advanced Micro Devices Inc AMD.O both said that their advanced chips, including Nvidia's data center chip A100, were added to the export control list by the U.S. Commerce Department. The Nvidia A800 can be used in place of the A100 and both are GPUs, or graphics processing units. "The Nvidia A800 GPU, which went into production in Q3, is another alternative product to the Nvidia A100 GPU for customers in China. At least two Chinese websites by major server makers offer the A800 chip in their products.

☆ U.S. chip manufacturers positioned to benefit from the CHIPS Act
▼ + stars: | 2022-11-07 | 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 EmailU.S. chip manufacturers positioned to benefit from the CHIPS ActCNBC's Seema Mody joins 'TechCheck' to discuss chipmakers increasing spending, developing specialized factories in the U.S. and the key beneficiaries from the CHIPS Act.

☆ Factbox: Chipmakers cut spending as demand boom makes way for downturn
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: 1 min

Nov 2 (Reuters) - The global chip industry is bracing for a downturn by reining in on investments for the year, in a stark contrast to initial 2022 predictions that pandemic-fueled demand would drive growth. The sharp reversal of fortune was triggered by a slump in the consumer electronics market due to decades-high inflation, rising interest rates and COVID-19 lockdowns in China. Here are the top companies that have cut their investments:Reporting by Sriraj Kalluvila and Chavi Mehta; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Toyota cuts output target amid chip crunch as profit tumbles 25%
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +3 min

Operating profit for the three months ended September fell to 562.7 billion yen ($3.79 billion), well short of an average estimate of 772.2 billion yen in a poll of 12 analysts by Refinitiv. A year earlier, Toyota sales reported a 749.9 billion yen profit. Toyota said it now expects to produce 9.2 million vehicles this fiscal year, down from the previously forecast 9.7 million but still ahead of last financial year's production of 8.6 million units. Amid the gloom, shares in Toyota fell more than 2%, versus a 0.1% rise in the Nikkei (.N225) average. Toyota estimated in August that materials costs for the full year will be 1.7 trillion yen, a 17% increase from previous estimate.

☆ Our guide to semiconductor companies and how their chips run our everyday lives
▼ + stars: | 2022-11-01 | by ( Zev Fima | ) www.cnbc.com time to read: +17 min

Semiconductor companies are also in the news a lot lately, whether it's the U.S. government cracking down on chip exports to China or innovations in connected cars and artificial intelligence. Since these companies don't need to invest in expensive fabrication facilities, they can run a more agile asset-light business model. Memory : The two main categories of memory chips are NAND and DRAM. Examples include those used for 5G, WiFi, Bluetooth, radiofrequency chips, near field communication chips (NFC), application-specific integrated circuit chips (ASICs), and so on. These chips are made by companies like Qualcomm, Marvell Technology, Broadcom (AVGO), ON Semiconductor, NXP Semiconductor (NXPI), and others.

☆ US curbs on China's microchip industry could throttle Xi Jinping's tech ambitions
▼ + stars: | 2022-10-31 | by ( Laura He | ) edition.cnn.com time to read: +8 min

One dramatic, and potentially disruptive aspect of the rules is the ban on American citizens and legal residents working with Chinese chip firms. The ban could lead to a mass resignation of top executives and core research staff working at Chinese chip firms, which will hit the industry hard, Dong from Georgetown University said. So far it’s not clear exactly how many American workers there are in China’s domestic chip industry. At Advanced Micro-Fabrication Equipment China (AMEC), one of the country’s largest semiconductor equipment manufacturers, at least seven executives, including founder and chairman Gerald Yin, hold US citizenship, the latest company documents show. But some Western suppliers have already started preparing to halt sales to China in response to the US export curbs.

Cloud services for years has been one of the largest and most dependable sources of growth for some of the biggest tech companies, including during the pandemic as people worked and studied from home. Growth in Amazon Web Services (AWS), the firm's lucrative cloud unit serving enterprises, has ticked down consistently in the past four quarters, adjusted for changes in forex. "The AWS slowdown is a clear sign that businesses are beginning to trim costs, so this will likely put more of a squeeze on Amazon's bottom line in the coming quarters," said Andrew Lipsman, principal analyst at Insider Intelligence. Alphabet's Google Cloud revenue grew 38% in the quarter, beating estimates. Cloud services typically help companies save money so budget cuts in this sector could be especially worrying, indicating that companies think cost is king going into tougher times.

☆ China to launch market-making on tech-focused STAR Market on Monday
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +1 min

[1/2] A sign for STAR Market, China's new Nasdaq-style tech board, is seen after the listing ceremony of the first batch of companies at Shanghai Stock Exchange (SSE) in Shanghai, China July 22, 2019. REUTERS/StringerSHANGHAI, Oct 28 (Reuters) - China's Nasdaq-style STAR Market will officially launch market making on Monday, in a bid to make the tech-focused board more liquid, vibrant and resilient, the Shanghai Stock Exchange said. The STAR Market, home to some of China's biggest chipmakers, biotech companies and high-end manufactures, is tasked with funding Beijing's tech innovation amid growing Sino-U.S. rivalry. The Shanghai Stock Exchange said it will continue to improve market mechanisms to help China achieve tech independency and self-sufficiency. Regulators have approved 14 brokerages as the first batch of market makers, which actively quote in stocks, providing liquidity and depth to the market.

☆ U.S. chipmaker Marvell cutting some R&D roles in China - statement
▼ + stars: | 2022-10-27 | by ( Josh Horwitz | ) www.reuters.com time to read: +2 min

"In China, we will focus our R&D investments on local customers and the China market," Stacey Keegan, vice president of Corporate Marketing at Marvell said in a written response to questions sent from Reuters. Domestic China media outlet iJiwei reported late on Wednesday, citing unnamed industry sources, that Marvell planned to lay off a large proportion of its research and development team in China. The company's move comes as chipmakers brace for slowing demand following a boom at the peak of a global chip shortage. read moreAmid the geopolitical tensions, a number of U.S.-based companies have scaled back ther R&D operations in China. In January, fellow U.S.-based chipmaker Micron Technology Inc (MU.O) shut down its its DRAM R&D center in Shanghai citing shifting investment priorities.

In its earnings release Intel said it was focused on driving $3 billion in cost reductions in 2023. So driving efficiency in the factory network is way more important to our economics than people cost," Gelsinger told Reuters, adding that adjustments of flexible workforces can be "quite immediate". "We believe its data center share loss should also moderate going into next year." PC shipments fell 15.5% in the third quarter, data from Counterpoint Research showed. Chipmakers have also come under pressure from concerns that the threat of a global recession could prompt clients from the more lucrative data center market to wind down spending.

Investors looked beyond the bleak outlook to welcome the aggressive investment cut, sending SK Hynix shares 1.7% higher in a bet the scale of the action would help control chip oversupply and prop up chip prices. SK Hynix said its operating profit fell to 1.66 trillion won ($1.16 billion) in the July-September quarter, from 4.2 trillion won a year earlier. The result was below analysts' expectations of a 1.87 trillion won profit, according to Refinitiv SmartEstimate. SK Hynix said its 2022 investment is expected to be at the "upper range of 10-20 trillion won ($7-14 billion)", meaning 2023 investments could fall below 10 trillion won. SK Hynix also warned of uncertainties involving its chip plants in China due to U.S. export restrictions on advanced chip equipment to China aimed at slowing Beijing's technological advances.

[1/3] The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, New York, U.S., November 17, 2021. A strong dollar has hurt the overseas profits of large firms, while soaring inflation has prompted interest rate hikes and companies to raise product prices, even as consumers have been forced to cut spending. Google's results bode ill for Facebook parent Meta Platforms (META.O), which is especially reliant on advertising and reports results on Wednesday. Last week, its smaller rival Snap Inc (SNAP.N) forecast no revenue growth for the holiday quarter, setting off warning bells in the social media industry. Shares in Spotify (SPOT.N), which also warned on slow advertising growth, slid 4%.

☆ Chipmaker UMC cuts capex in readiness for prolonged downturn
▼ + stars: | 2022-10-26 | by ( Sarah Wu | ) www.reuters.com time to read: +3 min

The company has revised 2022 capital expenditure down to $3 billion, compared with a previous plan for $3.6 billion, said finance chief Chitung Liu. However, expansion in Singapore and Tainan in southern Taiwan are progressing as planned to meet long-term supply commitments, Wang said. However, UMC will continue to monitor developments and "take risk-management measures as necessary", he added. Shares in UMC closed 3.4% down on Wednesday and have fallen about 41% this year. ($1 = 32.1210 Taiwan dollars)Reporting by Sarah Wu Additional reporting by Ben Blanchard Editing by David GoodmanOur Standards: The Thomson Reuters Trust Principles.

☆ Mobileye pops more than 30% in market debut after spinning out of Intel
▼ + stars: | 2022-10-26 | by ( Ashley Capoot | ) www.cnbc.com time to read: +3 min

Mobileye shares popped more than 30% in their stock market debut on Wednesday after the maker of technology for self-driving cars was spun out of Intel . In a year that's seen no significant tech IPOs in the U.S., Mobileye offers investors an opportunity to get in on area of growth. At its IPO price of $21, Mobileye was valued at just $17 billion, resulting in minimal gains for Intel thus far. Intel will retain control of Mobileye and hold over 750 million shares of Class B stock, which has 10 times the voting power of Class A stock. Intel shares were down slightly on Wednesday and have lost about 47% of their value this year, while the Nasdaq is down 29%.

[1/3] The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, New York, U.S., November 17, 2021. Google's results bode ill for Facebook parent Meta Platforms (META.O), which is especially reliant on advertising and reports results on Wednesday. Microsoft fell 2% and chipmaker Texas Instruments , which forecast quarterly revenue and profit below estimates, was down 5%. Shares in Spotify (SPOT.N), which also warned on slow advertising growth, slid 4%. "During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial," said TI boss Rich Templeton.

Semiconductor stocks have been beaten down this year, but HSBC still sees some upside for Club holdings Qualcomm (QCOM) and Advanced Micro Devices (AMD). Shares of Qualcomm were down 0.23%, at $115.47 a share, while shares of AMD were down more than 1%, at $58.18 a share, in midday trading. The analysts argued Qualcomm is well-positioned for growth because of its diversified revenue streams, aided by its automotive and internet of things pipelines — a view the Club shares. At the Club, we've been responding to chip industry pressures by recently reducing our exposure, selling shares of Qualcomm , AMD and Marvell Technology (MRVL). And we agree with HSBC that semiconductor firms like Qualcomm and AMD have competent management teams and leading technology portfolios.

☆ These two strategies can help you stay diversified in any kind of stock market
▼ + stars: | 2022-10-21 | by ( Zev Fima | ) www.cnbc.com time to read: +10 min

Barbell strategy The other way to think about diversification — and one we used heavily during this year's choppy market — is the barbell portfolio strategy. And if inflation persists but also economic activity picks up, you better own energy stocks. That also brings more demand into the oil market, so expect oil prices and the energy stocks tied to it to benefit. But using correlations and the barbell method to create a diverse mix of holdings can help you stay invested in market. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ Chip stocks have had a tough year — but one looks 'really inviting,' fund manager says
▼ + stars: | 2022-10-20 | by ( Zavier Ong | ) www.cnbc.com time to read: +3 min

Semiconductor stocks have been beaten down all year — thanks to waning chip demand and the easing of supply chain disruptions that hobbled the sector at the peak of the Covid pandemic. The iShares Semiconductor ETF is down around 44% year-to-date — a bloodbath even by this year's bear market standard. Hedge fund manager David Neuhauser said he believes Intel now looks "really inviting," with the company having lost a significant chunk of its market value so far this year. So, if there was one stock I would look at, it would be Intel today," Neuhauser said. Against the backdrop of these macro headwinds and intensifying competition in the sector, chip companies are looking to bolster their position.

☆ Lam Research warns of up to $2.5 bln revenue hit from U.S. curbs on China exports
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

Oct 19 (Reuters) - Chip-making technology provider Lam Research Corp (LRCX.O) on Wednesday warned of a $2 billion to $2.5 billion revenue hit in 2023 from U.S. curbs on exports of high-end technology shipments to China. Register now for FREE unlimited access to Reuters.com RegisterLam Research, which gets 30% of its business from China, is the latest company to flag a hit from the sales restrictions. read moreLam Research also reported strong first-quarter earnings on Wednesday and gave an upbeat revenue forecast for the current period. The company expects second-quarter revenue between $4.80 billion and $5.40 billion, the midpoint of which is higher than the $4.91 billion estimated by analysts, according to Refinitiv data. Shares of Lam Research had initially risen 4% in extended trading on the earnings report but pared most of the gains after the revenue warning.

☆ Taiwan-China, U.S.-China tensions 'serious' challenge for chip industry, TSMC says
▼ + stars: | 2022-10-19 | by ( Sarah Wu | ) www.reuters.com time to read: +3 min

HSINCHU, Taiwan, Oct 19 (Reuters) - Rising Taiwan-China and U.S.-China tensions have brought "more serious" challenges for the semiconductor industry, the chairman of Taiwanese chipmaker TSMC (2330.TW) said on Wednesday. Register now for FREE unlimited access to Reuters.com RegisterSpeaking at the Taiwan Semiconductor Industry Association's annual convention, TSMC Chairman Mark Liu said: "The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry." In recent years, China's government has "never stopped promoting its domestic semiconductor industry", including chip design, manufacturing, and packaging, he added. The United States has also passed its CHIPS Act to vigorously support local research and development and manufacturing, Liu said. Liu said he looked forward to Taiwan's industry, government and academia developing "more concrete, constructive measures" on industrial policies related to innovation, research, talent education and retention "to maintain Taiwan's most critical semiconductor industry advantages".

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