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    SemiWEEK: The Long-Term Cost of the U.S.-China battle; Stocks plunged

      Andrea Lati
     2nd-Nov-2020
    Description:

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

    Chip Market Research Services
    It’s cooling off as the holiday fog rolls in
    • Order activity for semiconductor equipment tumbled nearly three points amid rising uncertainty
    • Equipment suppliers have had a strong earnings season and expect solid results in Q4
    • Chipmakers have also had a relatively strong earnings season so far
    • VLSI’s Chip Price Performance Index finished flat

    Semiconductor Analytics
    Last Week in the Semiconductor Market:
    Semiconductor sales soared last week to record levels for the season, almost eclipsing this summer’s peak. IC Highlights: Focusing on the NAND picture this week: Sales have pulled out of their 3Q slump, although headwinds remain high compared to 2019. Semiconductor Supply/Demand held in a Tight seller’s market.
    Semi Market results from last week:
    • Semiconductor Sales Nowcast: The 4Q20 Nowcast jumped to +9%
    • Semiconductor Weather1 Report: Warm, with mixed sectors
    • IC Supply-Demand2 Metrics: Tight
    • Electronics Pricing Trend: Prices rose with strength in Tablets and Consumer

    Chip History Center
    Ultratech’s History in Semiconductor Manufacturing — Founded in 1979 as Ultratech Stepper, it was the oldest stepper company in the world until its sale to Veeco in 2017. Unique in its use of a 1X lens, it was less expensive to build than a reduction stepper, while giving it a very large field size. Mispositioned in during the 80s as a competitor to reduction wafer exposure tools, Ultratech got left behind. This changed in 1990, when Art Zafiropoulo led a management buyout and repositioned the tool as complementary to reduction steppers, reducing fab cost. He was inducted into the Semiconductor Hall of Fame in 1994 for his ability to convince a reluctant industry of the value of mix-and-match. He was recognized by SEMI in 2000, naming him the first recipient of its Bob Graham Award for sales and marketing excellence.

    The Chip Insider
    Strategy and Tactics: The Long-Term Cost of the U.S.-China battle.
    The Long-Term Cost of U.S. efforts to keep American Semiconductor Manufacturing Equipment out of China: The biggest cost could be the loss of U.S. leadership in this sector. America’s leadership in the semiconductor sector is rapidly diminishing along many lines. In contrast, the leadership of American semiconductor equipment companies in many areas is largely unchallenged, which may be why the U.S. has threatened to block the use of it by SMIC. This in turn has driven China to de-Americanize its semiconductor sector. Thus, a short-term solution could have major long-term costs.

    In simple terms, blocking American semiconductor equipment companies from revenue streams anywhere also blocks R&D funding levels. So how important is it? Over the next 5 years it could put America’s semiconductor equipment behind by almost 3 years, or more than a full node.

    What’s Happening and What’s the Meaning: Intel’s miss

    Maxim on the strategic importance of technology waves. Catch a wave and you're sitting on top of the world.* Miss a wave and you’re left behind looking like a seal meal for the sharks below. This is the most important concept to understand in the extreme sport of business: Tech. An ability to catch each successive wave is what makes great companies great. It proves their leadership is smart and not ... Catching the next wave is a strategic imperative. Miss one and you’ll soon be gone. There are sunken graveyards of forgotten companies who missed a wave… * Brian Wilson and Mike Love of the Beach Boys

    Semiconductor Stocks
    VLSI's Semiconductor Stock Indices plunged this week as Coronavirus cases hit a record high and the U.S. presidential election looms on the horizon.
    • Semiconductors -4%
    • Equipment -4%
    • EDA -4%
    • Electronic Materials -6%

    VLSI’s Semiconductor Stock Index sunk 3.5% despite claiming five of the top six stocks, SMIC was this week’s biggest winner..
    IDM -6.8%
    Foundry & OSAT -0.4%
    Fabless & Fablite -3.7%
    VLSI’s Semiconductor Equipment Stock Index sunk 4.3%, Advantest came out on top following their optimistic outlook for the year.
    WFE -4.6%
    Test +0.5%
    Assembly -8.1%

    VLSI’s EDA Stock Index sunk 4.1%.
    VLSI’s Electronics Materials Stock Index plummeted 6.3%.
    Hottest Stocks: SMIC, Advantest, Panasonic, JCET, ASE, and Xilinx

    Views: 920
    Domain: Electronics
    Category: Semiconductors