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    SemiWEEK: lntel’s Strategy under Pat Gelsinger; 2020 WFE Market Landscape; Stocks soared

      Andrea Lati

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

    Chip Market Research Services
    Spring's here and it's a HOT one!
    • Order activity for semiconductor equipment continued to heat up, jumping by another point to a sizzling 100 degrees
    • Intel’s CapEx hike—over $5B from last year’s level—added more fuel to an already hot equipment market
    • VLSI’s Chip Price Performance took a breather
    Semiconductor Analytics
    Last Week in the Semiconductor Market:
    Semiconductor sales rocketed up last week with 53% growth over 2020’s COVID infected week. Last week DRAM ran the fastest overall, followed by a 2-way tie for Auto and NAND – then Logic and Analog & Power. With the 1st quarter’s end near, all segments are nailing down finishes in the teens to 20% range.
    Semi Market results from last week:
    • Semiconductor Weather1 Report: The IC weather was +1?F hotter for the week.
    • Wafer Fab Production Levels: IC Wafer Fab Production levels blew past peak 2020 levels and were 76% above 1Q20’s COVID low.
    • IC Supply-Demand2 Metrics: Shortage. NAND fell back to Tight levels.
    • Electronics Prices are soft.

    The Chip Insider
    Strategy and Tactics: lntel’s Strategy under Pat Gelsinger. lntel’s partnership with IBM Research.

    lntel’s Strategy under Pat Gelsinger. Pat’s over-arching strategy is a fundamental shift back to the future. First and foremost, Pat is setting aside the company’s more recent strategy of cost reduction as the path to greater profits and returning to Gordon Moore’s time-honored model of technology investment being the path to greater profits through revenue growth. It’s a subtle difference, but an important one. Gordon once famously answered an investor’s question into why he was spending so much in a downturn with, “You can’t save your way out of a downturn.” There are three chronic diseases tech companies contract when their business turns down: 1) Cutting prices. 2) Cutting costs. 3) Reaching for incremental gains with product refreshes. Combinations of these can be fatal… The new strategic paradox… Rise of the Hyperverticals… Pat Gelsinger is leap-frogging the foundry/fabless model from being a foundry to being a TaaS company.

    lntel’s partnership with IBM Research: This match was a no-brainer, given the head-on train collision between the late-2020’s emergent post-global world and 2021’s global chip shortage, both of which fed on each other to raise semiconductors to the presidential level of U.S. national security concerns. Semiconductors have come a long way since the early 90s when the chair of the White House Council of Economic Advisers, Michael Boskin, demeaned their importance, stating that “Potato chips, computer chips, what’s the difference? A hundred dollars of one or a hundred dollars of the other is still a hundred dollars.” Thirty years later, semiconductors have risen in the political atmosphere from hands-off free-market economics to be considered a critical part of National Security. My take on the reason for lntel’s partnership is based on IBM’s ability to start working with the U.S. government today, its longer R&D time horizon, a proven ability to foster productive coopetitive partnerships, and its close relationship with decision makers in Washington D.C. As I wrote above, it’s a no-brainer.

    Semiconductor Manufacturing: 2020 WFE Market Landscape
    • Strong performance across top WFE OEMs
    • Overall WFE results
    • Implant and Etch had strong 2020 growth
    • Company positions
    • WFE competitive landscape
    • VLSI’s View

    Chip History Center
    People: Lithography Panel 2004: When immersion lithography was still in R&D and about to burst out into production. The four historic video interviews from Halloween 2004 cover what the leading lithography suppliers were thinking at the time and what results they were getting from early prototype tools coming to market. We always held it near Halloween because lithography barriers were indeed the scariest for the industry.

    Semiconductor Stocks
    VLSI's Semiconductor Stock Indices soared this week with Equipment and Materials stock indices hitting fresh new yearly highs.
    • Semiconductors +4%
    • Equipment +7%
    • EDA +6%
    • Electronic Materials +3%

    VLSI’s Semiconductor Stock Index was led up 3.8% by JCET which was one of the top performers this week.
    IDM +3.8%
    Foundry & OSAT +6.7%
    Fabless & Fablite +2.6%
    VLSI’s Semiconductor Equipment Stock Index was led up 7.4% by TEL, followed by Adantest, Onto Innovation, and Kulicke & Soffa. TEL was this week’s biggest winner.

    WFE +7.2%
    Test +10.5%
    Assembly +5.7%

    VLSI’s EDA Stock Index soared 5.7%.
    VLSI’s Electronics Materials Stock Index was led up 2.9% by Tokyo Ohka.
    Hottest Stocks: TEL, Advantest, JCET, Onto Innovation, Kulicke & Soffa, and Tokyo Ohka.

    Views: 769
    Domain: Electronics
    Category: Semiconductors