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    SemiWEEK: Applied Materials' New Strategic Plateau. Big-Bucks GSM Success in Semiconductors.; Stocks Rose

      Andrea Lati

    Semiconductor WEEK: An overview of results and conclusions from recent reports at VLSI.

    Chip Market Research Services
    CapEx wars are erupting
    • Order activity for semiconductor equipment hovered at a sizzling 105 degrees with all segments staying firmly in triple-digit territory
    • The visibility horizon for equipment suppliers is stretching into 2022 with delivery and equipment availability being the only issues
    • VLSI’s Chip Price Performance continued to roll over
    Semiconductor Analytics
    Last Week in the Semiconductor Market:
    Semiconductor sales continued to ease six weeks into 2Q2020. W/Q growth was negative at the IC Shortage headed to an end. Focusing on DRAM, Y/Y growth MA’s have cooled off a lot after over-heating in 1Q21, while W/W has been healthy. Sales levels are healthy and not over-saturated as in 2018.
    Semi Market results from last week:
    • Semiconductor Weather1 Report: The IC weather was cooler, with a 2?F drop.
    • Wafer Fab Production Levels: held well above 2020 levels.
    • IC Supply-Demand2 Metrics: Tight conditions continued to loosen.
    • Electronics Prices broke south again and dropped out of their channel.

    The Chip Insider
    Strategy and Tactics: Applied Materials’ New Strategic Plateau. Big-Bucks GSM success in semiconductors.

    Applied Materials Memory Master Class in Memory: I got the chance to attend this and was blown away at the strategic developments at the company, how aligned they are to their end-markets, and its leadership. Normally when we think of opportunities in the market, we tend to perceive it as a vertical stack. The classic way of looking at the semiconductor layer in this stack is as a driver of demand for equipment and materials that splits between DRAM, NAND, and Non-Memory. In terms of significant demand opportunities, Non-Memory is mostly made up of Logic, Analog, and Power, which are often bundled together into SOCs. For the sake of brevity, I’ll call it LAP, so you have DRAM, NAND, and LAP… Listening, I realized that Applied has reached a new strategic plateau in how it addresses the semiconductor market, in that it has woven an unprecedented fabric of technology, applications, and markets.

    GSM: the new MSG: Like everyone, I’ve been thinking a lot about Governments wanting to Spend More to support national semiconductor industries. And I’ve been trying to think up a good acronym for it. So, I thought the perfect acronym might be GSM for Government Spend More, given that it all started with …

    Can Big-Bucks GSM be successful in semiconductors? Let’s do a thought experiment. The general thesis is that any entity with enough money and ambition can build a fab. The problem then becomes one of where do you get the people? … But I posit the argument that Money + Engineers do not equal a viable semiconductor company…

    Chip History Center
    IBM’s development of copper interconnect for ICs September 1997: IBM was first with copper interconnect for semiconductors. IBM’s announcement was a press release heard around the world. The images were stunning at the time. More important was that it marked the successful culmination of a decade-long search for a material to replace aluminum. IBM would ramp copper production in three quarters on its 220nm microprocessors. Everyone was working on a solution … most on the wrong solution. The interesting untold stories center around the decision-making process at IBM and the untruths propagated by the PR machines of the day. One of the hardest things to do in R&D management is to choose which mountain to climb. Otherwise, your resources will be wasted away while researchers try to climb every mountain.
    Intel: 50 Years of Leadership: Six people have held the title of CEO over the first fifty years of Intel’s existence. All six have faced and have had to overcome great challenges. At the same time, no leader can be great without great followers. The real question is, what did these leaders set out to accomplish, did they achieve their goals, and what problems did they leave for each that followed them.

    Semiconductor Stocks

    VLSI's Semiconductor Stock Indices recovered some ground this week from last week’s worst plummet of the year while the market slipped.
    • Semiconductors +1.5%
    • Equipment +2.5%
    • Electronic Materials +0.8%
    • EDA +0.2%

    VLSI’s Semiconductor Stock Index increased this week with Fabless & Fablite companies claiming five of the top stock spots. MediaTek came out on top with Maxim, Analog Devices, MagnaChip Semiconductor, and MaxLinear also among the top performers.
    IDM +1.5%
    Foundry & OSAT -2.7%
    Fabless & Fablite +3.1%
    VLSI’s Semiconductor Equipment Stock Index jumped with Onto Innovation being this week’s biggest winner.

    WFE +2.4%
    Test +2.1%
    Assembly +2.6%

    VLSI’s EDA Stock squeezed a gain.
    VLSI’s Electronics Materials Stock Index rose with SOITEC, Tokyo Ohka, and Shin-Etsu performing better than the weekly average.
    Hottest Stocks: Onto Innovation, MediaTek, Analog Devices, Maxim, SOITEC, MagnaChip Semiconductor, and MaxLinear.
    Views: 592
    Domain: Electronics
    Category: Semiconductors