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☆ 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.

Samsung's (005930.KS) operating profit fell to 10.85 trillion won ($7.7 billion) for the July-September quarter, from 15.8 trillion won a year earlier, the first year-on-year decline in nearly three years. That was in line with Samsung's (005930.KS) own estimate of 10.8 trillion won earlier this month. Revenue rose 4% to 76.8 trillion won. Profit in its chip business fell to 5.12 trillion won from 10.07 trillion won a year earlier. This was relatively more upbeat than its smaller rival SK Hynix (000660.KS), which warned of an "unprecedented deterioration" in memory chip demand and slashed investment by more than 50% on Wednesday.

☆ Chipmaker STMicro sees sales growth slowdown in fourth quarter
▼ + stars: | 2022-10-27 | by ( Mathieu Rosemain | ) www.reuters.com time to read: +2 min

Bigger rival Texas Instruments Inc (TXN.O) earlier this week that it expected demand across most of its end markets to decline, while South Korea's SK Hynix Inc (000660.KS) warned of an "unprecedented deterioration" in memory chip demand. STMicro said it expected fourth-quarter sales to edge up by 1.8% from the previous quarter to about $4.4 billion. Co-controlled by the Italian and French governments, STMicro said demand rose across all its products in the third quarter, beating market expectations. Net revenue in the third quarter rose to $4.32 billion, above the company's own guidance and the $4.24 billion analyst consensus compiled by Visible Alpha. Reporting by Mathieu Rosemain; Editing by Muralikumar Anantharaman, Subhranshu Sahu and Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

☆ Halloween Comes Early for Chip-Equipment Companies
▼ + stars: | 2022-10-26 | by ( Jacky Wong | ) www.wsj.com time to read: 1 min

The feast for memory-chip companies has quickly turned to famine. Cutting capital spending is a necessary move to bring supply and demand back into line again—but that will heap more bad news on makers of semiconductor equipment upstream. That follows similar planned cuts at other chip companies. Micron Technology said last month that it would slash next year’s capital spending by 30%. Contract chip maker Taiwan Semiconductor Manufacturing Co. has also reduced its capital expenditure estimate for this year to $36 billion, from between $40 billion and $44 billion at the beginning of 2022.

☆ Chip Maker SK Hynix Slashes Capital Spending
▼ + stars: | 2022-10-26 | by ( Jiyoung Sohn | ) www.wsj.com time to read: 1 min

SEOUL—SK Hynix Inc., one of the world’s biggest chip makers by revenue, halved its planned investments for next year due to deteriorating market conditions, as the semiconductor industry’s downturn continues. Predicting a prolonged oversupply of memory chips, the South Korea-based SK Hynix said it would cut capital expenditure by more than 50% from the current year. The company said its 2022 spending would be between 10 trillion and 20 trillion won, equivalent to between $7 billion and $14 billion.

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.

☆ SK Hynix's production growth could be negative next year, says analyst
▼ + stars: | 2022-10-26 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSK Hynix's production growth could be negative next year, says analystSK Kim of Daiwa Capital Markets discusses SK Hynix's announcement of a capex cut and the company's plans to reduce production.

[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.

☆ Australia inflation hits highest in 32 years; Asia-Pacific markets rise
▼ + stars: | 2022-10-26 | by ( Abigail Ng | ) www.cnbc.com time to read: 1 min

Shares in the Asia-Pacific rose Wednesday as sentiment overnight improved over the Fed potentially turning less aggressive. In Australia, the S&P/ASX 200 rose 0.34% ahead of the report before trading almost flat. The Nikkei 225 in Japan rose 0.87% in early trade, and the Topix gained 0.79%. MSCI's broadest index of Asia-Pacific shares outside Japan ticked marginally higher. In corporate news, Standard Chartered, Ping An , and SK Hynix are among the companies slated to report earnings Wednesday.

☆ 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.

Oct 25 (Reuters) - Apple Inc (AAPL.O) said on Tuesday it would make fresh investments to set up solar and wind projects in Europe and called on its suppliers to decarbonize operations related to the production of iPhones and other products. Apple had previously asked suppliers to commit to 100% renewable energy for Apple's production. Apple has been carbon neutral for its global corporate operations since 2020. Apple said the European investments are part of a strategy to address about 22% of its carbon footprint coming from the electricity customers use to charge their devices. In total, the planned investments will add 3,000 gigawatt hours per year of new renewable energy on the grid, Apple said.

☆ SK Hynix Q3 profit plunges as economic downturn hurts chip demand
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +1 min

[1/2] Memory chips by South Korean semiconductor supplier SK Hynix are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/IllustrationSEOUL, Oct 26 (Reuters) - South Korea's SK Hynix Inc (000660.KS) posted a 60% drop in third-quarter profit, missing estimates as red-hot inflation hurt demand for electronic devices and memory chips that go in them. The world's second-biggest memory chipmaker said on Wednesday 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. Analysts expected a profit of 1.87 trillion won, according to Refinitiv SmartEstimate. Prices of DRAM chips, used in devices and servers, fell around 20% in the third quarter from the second, SK Hynix said.

☆ Stay invested in chip stocks, says one fund manager — who reveals how he’s trading the sector
▼ + stars: | 2022-10-21 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

The MSCI Semiconductor Index , a benchmark for chip stocks that's down by 43% this year, reflects the wider market's sentiment toward a potential slowdown in economic growth. In such an environment, some investors have begun to ask whether it might be prudent to dump chip stocks in favor of companies in other outperforming sectors. The portfolio manager revealed that he prefers holding on to Taiwan Semiconductor Manufacturing Company despite a 35% decline in the company's shares this year. The chip sector has historically run in boom and bust cycles. During economic growth, consumer demand for computers, laptops, and phones outstrips semiconductor manufacturing capacity, making the sector very profitable.

☆ Globally critical chip firm tells U.S. staff to stop servicing China customers after Biden export curbs
▼ + stars: | 2022-10-13 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

Dutch firm ASML makes one of the most important pieces of machinery required to manufacture the most advanced chips in the world. U.S. chip curbs have left companies, including ASML, scrambling to figure out what the rules mean in practice. A fab is a another name for a chip manufacturing plant. Last week, the U.S. government enacted sweeping rules that aimed to cut off China from key chips and semiconductor manufacturing equipment. Washington is concerned in particular about China obtaining access for the most advanced chips that can be used in military applications, artificial intelligence or super computing.

☆ Analysis: China faces its "Sputnik" moment as US export curbs deal a blow to its chip ambitions
▼ + stars: | 2022-10-13 | by ( ) www.reuters.com time to read: +6 min

The measures are set to undermine China's efforts to develop its own chip industry aimed at reducing its reliance on foreign-made chips. These are the questions," says Marco Mezger, a consultant in Taiwan who tracks the global memory chip sector. Washington is also scrambling to tackle unintended consequences of its new export curbs, people familiar with the matter said. Hours before the new restriction took effect, South Korea's SK Hynix (000660.KS) said it got U.S. authorization to receive goods for its chip production facilities in China without additional licensing imposed by the new rules. Yet business at toolmaking firms servicing Chinese customers has already slowed dramatically, leaving their staff with little work to do but creating an opening for Chinese equipment makers seeking to catch up with western rivals, sources said.

☆ SK Hynix Gets One-Year Reprieve From U.S. Chip Restrictions on China
▼ + stars: | 2022-10-12 | by ( Jiyoung Sohn | ) www.wsj.com time to read: 1 min

SEOUL—South Korean memory-chip maker SK Hynix received a one-year exemption from new U.S. restrictions blocking exports of advanced chips and related equipment to China, a sign of Washington’s willingness to offer reprieves that help minimize potential disruption to global semiconductor production. The new rules, unveiled Friday by the Commerce Department, add new license requirements for advanced semiconductors and chip-making equipment destined to a facility in China. Licenses for facilities owned by companies from the U.S. and its allies would be decided on a case-by-case basis, while Chinese-owned facilities would face a presumption of denial.

And as of midnight Tuesday, vendors also cannot support, service and send non-U.S. supplies to the China-based factories without licenses if U.S. companies or people are involved. The company said the change would help avoid disruptions to the supply chain and that the authorization is for a year. Licenses for Chinese chip factories were likely to be denied. Taiwan Semiconductor Manufacturing Co.(2330.TW) and Intel Corp (INTC.O) also operate chip factories in China. The Chinese chip facilities are not expected to get any reprieve.

☆ SK Hynix secures one-year waiver from U.S. govt on chip equipment for its facilities in China
▼ + stars: | 2022-10-12 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Oct 12 (Reuters) - South Korea's SK Hynix Inc (000660.KS) said on Wednesday it has received authorization from the U.S. Department of Commerce to receive chip equipment needed for its chip production facilities in China for one year, without seeking additional licensing requirements. Register now for FREE unlimited access to Reuters.com RegisterReporting by Heekyong Yang and Jane Lanhee Lee; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

As published, the rules require licenses before U.S. exports can be shipped to facilities with advanced chip production in China, as part of a U.S. bid to slow Beijing's technological and military advances. Register now for FREE unlimited access to Reuters.com RegisterThe U.S. had planned to grant licenses to supply non-Chinese chip factories on a case-by-case basis, while licenses to Chinese chipmakers will face a presumption of denial. As of midnight Tuesday, vendors also cannot support, service and send non-U.S. supplies to such China-based factories without licenses if U.S. companies authorize, direct or request them. A White House spokesperson also did not respond to a request for comment. Register now for FREE unlimited access to Reuters.com RegisterReporting By Jane Lanhee Lee and Karen Freifeld; Editing by Kim Coghill and Richard PullinOur Standards: The Thomson Reuters Trust Principles.

☆ Exclusive: KLA to stop sales and service to China to comply with U.S. export curbs
▼ + stars: | 2022-10-11 | by ( Josh Horwitz | ) www.reuters.com time to read: +4 min

The move underscores huge business headwinds facing chipmakers and chip equipment makers around the world, as the Biden administration published a sweeping set of export controls on Friday aimed at slowing China's progress in advanced chip manufacturing. The source added that the company would also cease supplying China chip plants owned by Intel (INTC.O) and SK Hynix, the world's second-largest memory chipmaker. SK Hynix reiterated its stance that it would seek a license under new U.S. export control rules for equipment to keep operating its factories in China. Another source at an overseas chip equipment company told Reuters that all of the major suppliers to fabs were working round-the-clock to assess the long-term impact of the regulations. Shares in KLA tumbled nearly 5% on Monday, hit by the latest U.S. export control measures.

☆ Chinese regulator gives greenlight to fund targeting Korean chipmakers
▼ + stars: | 2022-10-10 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, Oct 10 (Reuters) - China's securities regulator has given the greenlight to the country's first mutual fund targeting top Chinese and South Korean chipmakers, an official at Huatai-PineBridge Fund Management Co said, amid an escalating Sino-U.S. tech war. The China Securities Regulatory Commission's approval comes amid heightened geopolitical tensions between the world's two largest economies. The exchange-traded fund (ETF) will invest in top Korean semiconductor firms including Samsung Electronics Co (005930.KS) and SK Hynix Inc (000660.KS), as well as Chinese chipmaking giants such as Semiconductor Manufacturing International Corp and Montage Technology Co (688008.SS). In 2021, South Korea was China's second-biggest exporting country in equipments, including chipmaking tools, and Chinese exports to South Korea have also been rising, the fund manager said. South Korea said on Saturday there would be no significant disruption to equipment supply for Samsung and SK Hynix's existing chip production in China from the U.S. move.

☆ China tech shares sink as U.S. export curbs raise chip sector hurdles
▼ + stars: | 2022-10-10 | by ( ) www.reuters.com time to read: +7 min

The most immediate impact is likely to be felt by Chinese chipmakers, they said. The new regulations will now pose major hurdles for the two Chinese memory chipmakers, analysts said. A steep decline in tech shares led China's market down on its first post-Golden Week holiday trading on Monday. An index measuring China's semiconductor firms (.CSIH30184) tumbled nearly 7%, and Shanghai's tech-focused board STAR Market (.STAR50) declined 4.5%. SMIC dropped 4%, chip equipment maker NAURA Technology Group Co (002371.SZ) sank 10% by the daily limit, and Hua Hong Semiconductor plunged 9.5%.

The raft of measures could amount to the biggest shift in U.S. policy toward shipping technology to China since the 1990s. If effective, they could hobble China's chip manufacturing industry by forcing American and foreign companies that use U.S. technology to cut off support for some of China's leading factories and chip designers. The rules published on Friday also block shipments of a broad array of chips for use in Chinese supercomputing systems. "The U.S. should stop the wrongdoings immediately and give fair treatment to companies from all over the world, including Chinese companies." On Saturday, China's foreign ministry spokesperson Mao Ning called the move an abuse of trade measures designed to reinforce the United States' "technological hegemony".

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