Semiconductor WEEK: An overview of results and conclusions from recent reports at VLSI.
Can it remain this bright?• Order activity for semiconductor equipment jumped nearly two points, hitting a warm 82 degrees • Despite COVID-19 related uncertainties, chipmakers and equipment suppliers are ending the year on a strong footing and are feeling more optimistic about their prospects in 2021• VLSI’s Chip Price Performance Index fell at a moderate rate
Last Week in the Semiconductor Market:Semiconductor sales continued to set seasonal records at close to 20% y/y gains. IC Highlights: Focusing on the Auto IC picture this week, sales are in a distinct V recovery. Logic and Analog & Power w/y growth was higher last week. DRAM, NAND, and Auto were lower. Semi Market results from last week: • Semiconductor Sales Nowcast: jumped to 12% • Semiconductor Weather1 Report: Warm, Warmer• IC Supply-Demand2 Metrics: Tight• Electronics Pricing Trend: are trending higher with strength in Mobile and TabletsChip History CenterThe lady bug and the microchip … Little lil had heard that microchips had things as small as a micrometer and even as small as a handful of nanometers … A children's story about microns and nanometers that traces Little Lil the ladybug and her journey across a silicon wafer and down into a semiconductor integrated circuit. It was created to help kids get a visual sense out of what micrometers and nanometers are compared to the things they encounter everyday.The Chip InsiderStrategy and Tactics: For everyone who thinks Moore’s Law is dead. Intel slammed.For everyone who thinks Moore’s Law is dead: Look at this update to the famous chart showing growth in components-per-chip. Clearly, Moore’s Law is still alive and well. Everything is current and updated through 2020. What’s beyond is what we know companies are working on. Note how NAND is leaving everything else in the dust. As for the industry as a whole, demand for more transistors continues to be highly correlated to cost-per-transistor.What’s Happening and What’s the Meaning: Intel’s pummeling by the media is a great example of the maxim if you don’t control the conversation, your competitors will control the narrative (see Maxims below). There is a lot to unpack, but its relevance goes far beyond Intel. One can argue if Intel should be fabbed or fabless. One can also argue if filling leadership positions with so many outsiders from the fabless/foundry world weakened its understanding of how to leverage the IDM model. What is hard to argue is that the years-long marketing narrative competitors have spun led to an article that was biased with content that was either factually wrong or used facts taken out of context to fit a preconceived theme. It’s a demonstration of why a company can’t assume the world – and the media in particular – really understands it. This is what strategic marketing is for.Singles Day: Alibaba’s sales for the Chinese holiday hit $75B on 11/11, up 26% from 2019Maxims Reloaded: Never send a press release or hold a summit to do a marketing campaign’s job. Bad news is good news* applied to the media. Play the media… Don’t be played by it. Power projection must be a fundamental part of your company’s strategy.Semiconductor StocksVLSI's Semiconductor Stock Indices rose this week, three of the indices hit a new yearly high for the third consecutive week. • Semiconductors +2%• Equipment +3%• EDA -3%• Electronic Materials +3%VLSI’s Semiconductor Stock Index was led up 2.2% by MediaTek, MaxLinear, and SK hynix who were this week’s biggest winners.IDM +3.2%Foundry & OSAT +1.3%Fabless & Fablite +2.1%VLSI’s Semiconductor Equipment Stock Index climbed 3.3%, ASM International came out on top.WFE +3.0%Test +3.8%Assembly +4.8%VLSI’s EDA Stock Index fell 3.0%.VLSI’s Electronics Materials Stock Index was led up 2.9% by JSR and Cabot Microelectronics.Hottest Stocks: MediaTek, MaxLinear, SK hynix, JSR, ASM International, and Cabot Microelectronics.