U.S. Semiconductor Stocks Hit by Tax Plans. DRAM Price Canary Stops Singing
The Chip Insider®
September 10, 2021 — Strategy and Tactics: U.S. Semiconductor Stocks hit by tax plans. DRAM Price canary stops singing. WildPhotons: The more you struggle to make it lifelike the less like life it becomes...
G. Dan Hutcheson
Summaries: U.S. Semiconductor Stocks hit by U.S. corporate tax plans: President Biden's plans to raise corporate taxes from 21% to 28% look to be having collateral damage on America's semiconductor industry, as investors plan for the earnings hit by moving their money to non-US companies...This is a job for the SIA and SEMI to tackle.
DRAM Contract vs Spot Prices:
Has one of the canaries in the coal mine stopped singing?...Well, they haven't been singing recently while July's DRAM contract-prices went in the opposite direction. This is very concerning because contract prices typically lag spot prices. When they fly too far away contract prices will hunt down spot Ppb, as you can see the Kestrel of ASPs dive on the spot-price canary in December 2020. When the shortage hit, they actually led them up. It's so important that Andrea Lati highlighted it this week on VLSIinsiders, which is available on VLSI's app. But here's the thing: Price-per-bit is fundamentally different than Price-per-package ASPs. It's an apple to crated-apples comparison. The fact that indexed contract prices were higher in January - in the middle of the great chip shortage - is a hint that something is wrong with the metrics, not the market...When Contact ASPs are corrected to Ppb levels, the contract price correction can be seen to overshoot spot prices in its December dive...
The Semiconductor Market Stack:
Why GDP, not electronics is the new driver...chips have broken out of the electronics box.
Dan's China Strategy Book Shelf:
The China Mission: George Marshall's Unfinished War, 1945-1947 by Daniel Kurtz-Phelan.
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