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    SemiWEEK: Intel’s Foundry Strategy for Growth & IDM 2.0: What’s different?; Stocks soared

      Andrea Lati
     Nov 8, 2021
    Description:

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

    Chip Market Research Services
    Savoring the fall rise
    • Order activity for semiconductor equipment jumped past 110 degrees
    • SOC Mobile and SOC Computing recorded the biggest gains, hitting fresh new highs for the year
    • Memory activity continued to trend lower, though it’s still expanding
    • VLSI’s Chip Price Performance tumbled
    Semiconductor Analytics
    Last Week in the Semiconductor Market:
    Semiconductor sales jumped by another 1% W/W while Y/Y growth continued to decelerate. The IC weather warmed 2?F last week. Sales for all segments have been on fire since March. But CAGRs are nose-bleed high. Growth continued to slow due to tougher 2020 comps than a real decline. Still, 2021 will be the year in which semiconductor sales blew past a Half-a-Trillion and Logic at a Quarter-Trillion!
    Peak growth rates, due to the COVID recovery tsunami, are starting to abate and should hunt native rates of 6-9%/yr. Our models show 2022 should be slightly higher than this. In 2021, DRAM results consistently beat our neural nets, while NAND underperformed. Growth rates continued to roll over last week, especially for Auto, Analog & Power, and DRAM.
    VLSI’s IC Supply/Demand indices held at Tight last week with More-than-Moore Foundry, OSAT, and Auto tightening up a notch. NAND slipped from Shortage to Tight.
    Electronics’ Retail Prices are starting to rise again.

    Strategy and Tactics: Intel’s Foundry Strategy for Growth & IDM 2.0: What’s different?

    Summaries:
    Why Foundry is the best growth strategy for lntel: Many find Pat Gelsinger’s foundry strategy for Intel to be counter-intuitive. One thing is for sure, his IDM 2.0 strategy is on a Grove-ian level of doing the unexpected. Still, I find Pat’s foundry strategy a straightforward answer to Intel’s growth constraint of being trapped in is dominance of PC processors and the data center… Intel’s moats in these spaces have become about as threatening to competitors as Hadrian’s Wall was to barbarians. They can go after market adjacencies like mobile or GPUs, but then they face competitors like Qualcomm and Nvidia who have huge IP moats against an Intel with few core strengths. The negative image of Intel’s moats in the game of semiconductor Wei Chi reveals that it’s Intel who is surrounded. Pat understands this and wants to break out…
    IDM 2.0: What’s different about it? … One word! I got a chance to ask Pat Gelsinger what’s different about IDM 2.0 from IDM 1.0. After all, on the surface IDM 2.0 is not perceivably different from Intel 1.7, under its seventh CEO in three ways: 1) Intel 1.7 designed and made its own chips, 2) it offered foundry services, and 3) it had been offloading mature chip designs to foundries for decades under strategy developed by Jerry Parker to control capital expenditures. Pat mentioned all 3, with the difference that it’s foundry would no longer have to come to the fight with its hands tied behind its back. More importantly he added a critical word... This difference is existentially critical because it means … TSMC’s yield learning is … the rate of Intel’s…

    Chip History Center
    People: Mark Jagiela on Consolidation and Open Architectures. The mark of a true visionary is when their ideas stand the test of time, which Mark’s views on Open Architecture certainly did. So here’s the video interviews about a subject in heated debate at the time. It gives a glimpse into Teradyne’s CEO in the making.

    Semiconductor Stocks

    VLSI's Semiconductor Stock Indices and the market soared this week with all indices and the S&P 500 hitting fresh new yearly highs.
    • Semiconductors +6.1%
    • Equipment +6.1%
    • Electronic Materials +4.6%
    • EDA +2.5%

    VLSI’s Semiconductor Stock Index was led up by GLOBALFOUNDRIES who was this week’s biggest winner. ON Semiconductor, Qualcomm, and NVIDIA also soared and claimed four of the top six spots this week.
    IDM +7.3%
    Foundry & OSAT +3.4%
    Fabless & Fablite +6.2%
    VLSI’s Semiconductor Equipment Stock Index was led up by Onto Innovation after their record quarterly revenue exceeded guidance. Veeco Instruments, Applied Materials, KLA, and FormFactor also performed well this week.

    WFE +8.4%
    Test +7.8%
    Assembly -0.8%

    VLSI’s EDA Stock rose this week.
    VLSI’s Electronics Materials Stock Index was led up by DuPont de Nemours
    Hottest Stocks: GLOBALFOUNDRIES, ON Semiconductor, Qualcomm, Onto Innovation, NVIDIA, and DuPont de Nemours.

    Views: 389
    Domain: Electronics
    Category: Semiconductors


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