Chipmakers need to start serving their robot overlords

Tan KW

Publish date: Fri, 26 Jan 2018, 05:23 PM

It's starting to look like smartphones are no longer the ever-reliable driver of global semiconductor demand.

For the past decade, it was those touch-screen, Internet-connected, selfie-taking devices that propped up the industry as the appetite for computers declined.

STMicroelectronics NV on Jan 25 added to the chatter when it pointed to “unfavourable seasonal dynamics for smartphone applications” in forecasting a dip in revenue and profitability. To be clear, smartphone seasonality is expected in the industry and analysts at Natixis SA were quick to respond to the Swiss firm's fourth-quarter results and first-quarter outlook in a positive tone.

But put together, a comment here and a hint there, the larger picture is starting to become clear. Texas Instruments Inc this week gave a disappointing sales outlook, blaming makers of communications equipment and some personal electronics.

Taiwan Semiconductor Manufacturing Co enunciated the changing trend most clearly last week when it forecast flat revenue growth for smartphones, but strength in newer areas such as high-performance computing (HPC), the Internet-of-things (IoT) and automotive. HPC is a catch-all term that includes Bitcoin mining and graphics processors, yet TSMC Chairman Morris Chang last week highlighted artificial intelligence specifically, saying "HPC will grow strongly due to continuing expansion of AI applications in all electronic devices".

Cars and appliances are being automated thanks to the advent of AI software and chips. In China, a growing power in this field, the government has singled out specific companies for special treatment because of their development of AI semiconductors. Such technology underpins the move by firms like Hangzhou Hikvision Digital Technology Co beyond simple surveillance cameras and into real-time facial recognition and tracking.

For chipmakers – from Texas to Geneva – it's obvious the smartphone gravy train is starting to slow. Now they just need to figure out how to satisfy those robot overlords. — Bloomberg

Discussions

Be the first to like this. Showing 8 of 8 comments

hstha

Annual semiconductor unit shipments (integrated circuits and opto-sensor-discretes, or O-S-D, devices) are expected to grow 9% in 2018 and top one trillion units for the first time, according to IC Insights.
https://www.digitimes.com/news/a20180126PR201.html

2018-01-26 21:28

hstha

Though TI saw strong demand for chips used in automobiles and by industries, Chief Executive Officer Richard Templeton said the business that makes chips used in communications equipment faced soft demand.
https://www.reuters.com/article/us-texas-instrument-results/texas-instruments-revenue-growth-slowdown-rattles-investors-idUSKBN1FC2ZL?il

2018-01-26 21:36

hstha

In 2017 every semiconductor stock was a good buy, but in 2018 you need to be more selective. Buy automotive semiconductor stocks like KESM or semiconductor stocks with a low P/E like MMSV.

2018-01-26 21:39

hstha

The strength on Wall Street reflects a positive reaction to the latest earnings news, with shares of Intel (INTC) moving sharply higher after the semiconductor giant reported fourth quarter results that exceeded analyst estimates.

2018-01-27 00:39

hstha

The US semiconductor index was up 3.26%. Very bullish. It is close to a multi-year high. Buy semiconductor stocks on Monday! Semiconductor rally is coming.
https://www.marketwatch.com/investing/index/sox

2018-01-27 08:59

hstha

North American semi equipment industry posts strong December billings

26 January 2018
North America-based manufacturers of semiconductor equipment posted US$2.39 billion in billings worldwide in December 2017 (three-month average basis), according to SEMI. The billings figure is 16.3% higher than the revised November 2017 level of US$2.05 billion and 27.7% above the December 2016 billings level of US$1.87 billion.
https://www.digitimes.com/news/a20180126PR200.html

Buy semiconductor stocks on Monday! Semiconductor rally is coming.

2018-01-27 09:14

tecpower

Texas Instruments (NASDAQ:TXN) had its target price upped by JPMorgan Chase & Co. from $110.00 to $122.00 in a report released on Wednesday. The firm currently has an overweight rating on the semiconductor company’s stock.
https://registrarjournal.com/2018/01/27/jpmorgan-chase-co-increases-texas-instruments-txn-price-target-to-122-00.html

Texas Instruments was up 3.21% on Friday.

2018-01-28 02:02

$Vincent$

not a bad sharing, can you tell how that US good prospect counter relate to any of Bursa counter?

2018-01-28 10:41

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