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PC chipmakers move higher; TSMC reportedly seeing order pull-ins

  • Digitimes reports top chip foundry TSMC (TSM +1.7%), which counts AMD (AMD +1.7%) and Nvidia (NVDA +1.2%) among its clients is seeing pull-in orders from PC and smartphone chipmakers for parts set to be delivered in the second half of January.
  • The PC orders are said to reflect "a rebound of replenishment demand in the PC sector and an improvement in sales in the end market." The report comes three weeks after Citi made note of improving/stabilizing PC demand, and cited it as a reason for upgrading Intel (INTC +0.7%).
  • Intel was hit hard last month after guiding for flat 2014 revenue/EPS growth. With IDC expecting PC unit shipments to drop 3.8% in 2014 after falling 10.1% in 2013, expectations are low.
  • PC sales to enterprises (aided by the Windows 7 upgrade cycle) and developed markets have been showing signs of stabilization, but sales to emerging markets continue to fall sharply. Given tablet cannibalization began affecting developed markets first, their stabilization (assuming it holds) could be a sign emerging markets will bottom somewhere in 2014.
  • Regarding smartphone orders, Digitimes reports demand related to high-end smartphones is picking up thanks to pending product launches, many of which will come at CES (Jan. 7-10) and the Mobile World Congress (Feb. 24-27).
Comments (13)
  • WHAT is a "pull-in" order ??
    30 Dec 2013, 02:09 PM Reply Like
  • Pull-in orders are orders that were originally set to be delivered further down the line, but have been "pulled in" to a closer date, generally because a customer is seeing stronger-than-expected demand.
    30 Dec 2013, 02:20 PM Reply Like
  • AMD R9 product lines, Radeon 7850 and up are all getting bumped to meet demands.
    30 Dec 2013, 02:29 PM Reply Like
  • That's when the drill sgt yells in your face: SUCK IN THAT GUT SOLDIER
    30 Dec 2013, 10:33 PM Reply Like
  • The article more specifically indicated modems for smartphones.
    Could these be Intel's?
    30 Dec 2013, 02:12 PM Reply Like
  • Here's the actual quote -


    "Buoyed by new chip orders for PC, modem, wireless networking and finger encryption applications, TSMC is expected to see its capacity utilization rebound in the first quarter of 2014, commented the sources."


    It lists both PCs and chip orders. But here's my question - why do people still trust Digitimes? Is TSMC making iPhone chips yet?


    Long $INTC, Longer $AMD, but do not trust digitimes
    30 Dec 2013, 02:17 PM Reply Like
  • The article also included the following passage:


    "The short lead-time orders reflect a rebound of replenishment demand in the PC sector and an improvement in sales in the end market, stated the sources."


    Digitimes' supply chain reports tend to be pretty solid. It's their predictions for future product launches (especially mobile devices) that need to be taken with a large dose of salt. They clearly have some useful sources at Taiwanese foundries, ODMs, and chipmakers, but I wouldn't count on them to know when, say, the iWatch is launching.
    30 Dec 2013, 02:25 PM Reply Like
  • I'm pretty sure any prediction from any source should be taken with spoonfuls of salt. Nobody knows the future.
    30 Dec 2013, 02:32 PM Reply Like
  • Thanks for the clarification Eric - I'll take note of that in the future.
    30 Dec 2013, 02:32 PM Reply Like
  • so people are finally realizing their pc's are slow as sh... and their tablets can't do any productive work either eh?
    30 Dec 2013, 02:41 PM Reply Like
  • Modern desktop PCs are fast as lightning unless you got a poorly written antivirus sucking cycles. Or, you didn't invest in any kind of antivirus, and you are loaded down with sucky malware within a week of opening the box.
    With a desktop, there is almost infinite cooling and heat-sinking available for the hottest multi-core CPUs and graphics chips. No need to compromise speed for power now that the govt banned incandescents. More power in the grid available for serious gaming or running spreadsheets.
    There is nothing like an ergonomic touch-type keyboard with tactile feedback.
    Or a gaudy track ball wireless mouse.
    There, I said it.
    Throw me off the S and M (social and mobile) train.
    30 Dec 2013, 10:58 PM Reply Like
  • I have an iPad 2 (the first time Apple named a device an iPad 2, not the new-fangled iPad 2)


    I can see the appeal of having 1 tablet - but I personally don't see the appeal of upgrading tablets as often as PCs. I have bought more PCs than tablets since tablets have been introduced, and as long as new designs like the MacBook Air keep coming out, I have no desire to use a tablet.
    30 Dec 2013, 11:09 PM Reply Like
  • I use an iPad 2. I take it everywhere. The only thing I can't do is program on it. I would love to be able to run REBOL! I have a Masters in Computer Science from the University of Texas in 1971. For 5 years I worked for Intel in Austin, TX when Intel bought the software company I worked for. I have Intel stock from options exercised in the 80s. I predict Intel will break through $26 today.
    31 Dec 2013, 01:56 AM Reply Like
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