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    SemiWEEK: Flying into a headwind; Semiconductor sales dove deep; Stocks plummet

      Andrea Lati
     16th-Mar-2020
    Description:

    Flying into a headwind. Order activity for semiconductor equipment extended its decline for the fourth straight consecutive week amid mounting worries of flattening demand and supply disruptions. The latter segment has short lead times and significant exposure to China. The Chip Price Performance Index (CPPI) surged 2.7 points. IC Inventories are rolling over. Semiconductor sales dove deep under 2019 levels last week as the rise in prices failed to break the fall of units, which caught pneumonia from COVID-19. COVID-19 finally infected the Semiconductor Nowcast, hitting DRAM, NAND, and Auto ICs hard. Semiconductor Sales Nowcast: 1Q20/1Q19. Caught an infection, declining to +4%. Semiconductor Weather1 Report: COVID-19 Flu Chills. IC Supply-Demand2 Metrics: Returned to Balanced. Electronics Pricing Trend: Bottoming. Coronavirus has had a deep negative impact on Integrated Circuit sales in the first 2 weeks of February. Certainties: Coronavirus Pandemic, China Slowdown, 5G: Smartphone, Auto, industrial, Win 7 EoL refresh, 7/10nm and 5/7nm demand ramps, Memory Price Elasticity. Uncertainties: Federal Reserve pulling punchbowl from party in January, 2020 Elections in U.S. Applied Materials introduces Producer wafer fab system: July 2, 1998 … Applied Materials’ introduction of the Producer® in July 1998, marks an important turning point in the history of the semiconductor industry... The pressure to make this transition was driven by the need for greater productivity as … AMAT’s Producer design team conceived of it as a one-two punch to solve poor cluster-tool productivity and bridge the 200mm-to-300mm jump. At the time, tool designers still tended to focus designs on narrow application segments ... Customers did not want bridge tools … The Producer platform was a gutsy move because it offered what customers needed but didn’t want. Great equipment companies have done this in the past and won big. The Producer would go on to be one of the most successful platforms in the industry’s history, bridging many deposition and etch applications. The Chip Insider’s original review of Applied Materials' Producer at its introduction July 4, 1998: a new revolution is upon us … It has been ten years … since Applied Materials set the world afire with its Precision 5000 cluster tool. Now, Applied Materials has just done what no one does better, it has reinvented itself with the PRODUCER™. The PRODUCER™ is designed around new architecture concepts which obsolete all current cluster tool designs. More importantly, Applied Materials has reinvented the cluster tool in a sweeping way that challenges all past thinking about fab equipment…VLSI's Semiconductor Stock Indices plummeted along with the market as Coronavirus fears intensified. Semiconductors -12%, Equipment -14%, EDA -5%, Electronic Materials -16%. VLSI’s Semiconductor Stock Index plunged 11.6% amid broad market selloff. IDM -14.3%. Foundry & OSAT -11.5%. Fabless & Fablite -10.9%. VLSI’s Semiconductor Equipment Stock Index plunged 13.9% with all companies finishing deep in the red. WFE -15.0%. Test -11.6%. Assembly -12.1%. VLSI’s EDA Stock Index recorded the smallest decline among segments. VLSI’s Electronics Materials Stock Index fared the worst, plummeting 16.3%. Hottest Stocks: Qualcomm, Intel, Cadence, JCET, Xilinx, and Kulicke & Soffa.

    Views: 929
    Domain: Electronics
    Category: Semiconductors