US sanctions against Huawei hurt Shenzhen, China as well, media report. Huawei was a key reason Shenzhen became the top chip design area in China, way ahead of others. Shenzhen’s chip design sector has been nearly halved since the sanctions. Thread 1/5 money.udn.com/money/story/56…
2/5 Huawei Sanctions
Sales among Shenzhen's chip designers fell 46.4% to CNY69.7 billion (US$10.7 bln) in 2021, media report, citing China Semiconductor Industry Association. The inability of Huawei’s HiSilicon to get chips produced was a key to the decline. #semiconductors
3/5 Huawei Sanctions
Shanghai took over the top spot in China chip design as sales rose to CNY120 billion (US$19.9 billion), with Beijing second at CNY83.9 billion (US$13.2 billion), leaving Shenzhen in third place, the report says.
4/5 Huawei Sanctions
Overall, China’s chip design industry has not suffered. The total number of chip design firms rose to 2,810 this year, from 2,218 last year, up 26.7%, the report says. 2,351 of those companies are small firms with less than 100 employees. #semiconductors
5/5 Huawei Sanctions
China’s chip design industry sales rose 20% to CNY458.7 billion (US$72.2 bln) in 2021, up from CNY381.9 billion last year, the report says. Around 40% of all chip designers in China were profitable in 2021. #China#semiconductors
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SMIC can mass produce 5-nanometer chips with existing equipment and does not need EUV Lithography,said the inventor of immersion lithography, Burn J. Lin, professor at Nat’l Tsinghua U. and former TSMC exec, media report. $SMICY #semiconductors Thread 1/5 chinatimes.com/realtimenews/2…
2/5 Burn J. Lin
The chip industry legend said SMIC's success in 5nm chips depends on if the R&D skills are in place. (Note: His comments shed light on 12/9 Wall Street Journal article that the US may seek to ban the export of more chip equipment to SMIC.) wsj.com/articles/u-s-t…
3/5 Burn J. Lin
Samsung's bid to leap ahead in 3-nanometer process technology will end in tears, Lin also reportedly said. Developing 3nm and below process technology is a thankless task fraught with risk and massive $$ investment, he said. $TSM #Samsung#semiconductors
Micron has reduced work at a DRAM test/assembly plant in Xi'an, China due to #COVID19 and is working with officials and partners to minimize impact on DRAM supplies, Micron said, and "We project that these efforts will allow us to meet most of our customer demand..." $MU 1/2
Micron's joint venture partner in the Xi'an, China DRAM test/assembly plant, Powertech Technology, reportedly said the utilization rate at the plant dropped to 40%-50% the past 2-days due to the city's #COVID19 lockdown, media report. Powertech is a Taiwan firm. $MU
Intel CEO Pat Gelsinger made headlines by saying US chip subsidies should be for American firms, not foreign ones like TSMC or Samsung; then saying "Taiwan is not a stable place," due to the military threat (from China).
Thread 1/8 Chip Subsidies $INTC $TSM #semiconductors
2/8 Chip Subsidies
Gelsinger means the US$52 billion in subsidies for new US chip plants, called fabs, in the CHIPS for America Act, money Intel wants for its own new fabs. Fabs cost billions. Samsung is investing $17bln in a Texas fab; TSMC's Arizona fab is $12bln. $INTC $TSM
3/8 Chip Subsidies
TSMC Chairman Mark Liu responded by saying the subsidies should be for any new US fabs, and that if the money is only for US firms, it will hurt America’s ability to rebuild its semiconductor supply chain. $INTC $TSM $MU #semiconductors
TSMC on Japan fab: plans to build a specialty technology fab in Japan, subject to board approval. Japanese government supports the plan. Will build a 22-28nm process technology #semiconductor fab. Fab construction to begin in 2022, and mass production expected in 2024. $TSM
2/? TSMC 3Q Call
TSMC CEO CC Wei: We are confident we will retain our technology leadership. 2nm technology, density and performance will be the most competitive in 2025 and GAA structure is being considered, but won't say more today. (paraphrasing). $TSM
3/? TSMC 3Q Call
CEO CC Wei: "We are entering a period of higher structural growth" due to 5G, HPC and massive new demand for energy efficient computing, which will require leading edge technologies.
"We expect our capacity to remain tight in 2021 and throughout 2022."
$TSM
Taiwan newspapers are full of Apple stories as #AppleEvent looms (9/14 Tuesday) with expected #iPhone13 launch.
Thread #Apple 1/5
#Apple 2/5
Taiwan contract iPhone assembly firms Foxconn (Hon Hai) and Pegatron are working overtime to meet demand, media report, with Foxconn said to have hired more than 100,000 additional workers in Zhengzhou to meet production needs. $AAPL
#Apple 3/5
Foxconn (Hon Hai) is expected to remain the biggest iPhone assembler at 65%-70%, compared to Pegatron at 25%, mainly iPhone 13 and #iPhone13 mini, Taiwan media report, adding China's LuxShare Precision will assemble around 5% of iPhones this year.
Legendary investor Stan Druckenmiller tells a story of turning in his first report as a young analyst, very proud of his fundamental research, charts and analysis.
“This is useless,” said his boss. “What makes the stock go up and down?”
Thread 1/14
2/14 Benton Rules
That simple question made him change his entire approach:
“Thereafter, I focused my analysis on seeking to identify the factors that were strongly correlated to the stock’s price movement as opposed to looking at all the fundamentals.”
3/14 Benton Rules
In that spirit, here are the Rules for Technology Stocks set down by Dan Benton, when he was a top ranked PC analyst at Goldman Sachs (1988 – 1993). Much of it remains valid today.