Tue, Sep. 8, 3:25 PM
- The Philadelphia Semi Index (SOXX +3.9%) has risen to its highest levels since mid-August on a day the Nasdaq is posting a 2.3% gain.
- Likely helping out: Microchip (MCHP +8.4%), still often seen as an industry bellwether (though its commentary accompanying last fall's warning sparked criticism), has adjusted its FQ2 (calendar Q3) revenue and EPS guidance to $545M-$563M ($554M midpoint) and $0.60-$0.66 from a prior $$532M-$569M ($550.5M midpoint) and $0.58-$0.66. The outlook comes after many chipmakers (Microchip included) offered below-consensus calendar Q3 guidance amid an inventory correction, weak PC demand, and slowing Chinese smartphone growth.
- Microchip's core ops are said to be tracking in-line with prior expectations, and recently-acquired Micrel's above expectations. The 8.6M shares issued in the Micrel deal have been repurchased.
- Also: Various Taiwanese chipmakers and supply chain firms have reported August sales. Chip packaging/testing firms ASE (ASX +5.9%) and Siliconware (SPIL +4.1%) respectively reported sales were up 5.8% and 5.7% M/M, and up 9.5% and down 4.2% Y/Y.
- Big gainers include Microchip peers NXP (NXPI +6.8%), Freescale (FSL +5.8%), Silicon Labs (SLAB +4.4%), and Cypress (CY +4.4%). Others include Avago (AVGO +5.8%), Xilinx (XLNX +5.7%), Cavium (CAVM +5.5%), Analog Devices (ADI +6.3%), Synaptics (SYNA +5.4%), Linear (LLTC +4.6%), Cirrus Logic (CRUS +4.7%), IDT (IDTI +4.6%), Sigma Designs (SIGM +4.9%), and chip equipment maker Axcelis (ACLS +8%).
- SanDisk, ON Semi, and Silicon Motion are benefiting from upgrades/bullish coverage. Apple holds its iPhone event at 1PM ET tomorrow.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Fri, Aug. 28, 10:25 AM
- Hon Hai Precision Industry (OTC:HNHAF) agrees to buy a 21% stake in Siliconware Precision Industries (SPIL -5.2%), after fellow Taiwan-based Apple supplier Advanced Semiconductor Engineering (ASX -1.6%) said last week it wanted to buy into the company.
- The share-swap announcement comes hours after SPIL rejected ASE's hostile tender offer as too low.
- "Foxconn has become SPIL’s white knight, and makes a more logical partner because they can add growth and even lure Apple to use SPIL instead of ASE," says Vincent Chen, head of research at Yuanta Financial in Taipei.
Fri, Aug. 21, 9:23 AM
- With Advanced Semiconductor Engineering (NYSE:ASX) buying up to 25% of Siliconware Precision Industries (NASDAQ:SPIL) at a healthy premium, Seeking Alpha contributor Dane Capital Management says ChipMOS (NASDAQ:IMOS) should be very much on watch.
- Even at a sizable premium, a purchase by almost any larger competitor would be tremendously accretive, says Dane, and IMOS' huge net cash position and tremendous cash flow makes funding a deal an easy task.
- Previously from Dane Capital: ChipMOS: Oligopoly At 4x EBITDA, 8x EPS With Pending Buyback - A Holiday Gift
- SPIL +23.55% premarket to $6.40.
Fri, Aug. 21, 8:15 AM
- Advanced Semiconductor Engineering (NYSE:ASX) announces it will buy up to 25% of Siliconware Precision Industries (NASDAQ:SPIL) for an amount likely exceeding T$30B ($919M).
- "In the face of intensifying global competition and the rise of new contenders, the drive for consolidation of the semiconductor industry is becoming increasingly apparent," the company said in a statement.
- ASE said it would offer T$45 per common share of SPIL and T$225 ($6.89) per ADS payable in the equivalent amount of U.S. dollars.
Thu, Jul. 30, 4:37 AM
Tue, Jul. 28, 9:17 AM
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Fri, Feb. 6, 6:28 AM
Oct. 30, 2014, 6:23 AM
Jul. 30, 2014, 6:23 AM
Jul. 24, 2014, 9:45 AM
- Akamai (AKAM +1.9%) has been upgraded to Outperform by Macquarie. Q2 results are due on July 30.
- Unisys (UIS +7.9%) has been upgraded to Positive by Susquehanna. Shares crashed yesterday following a Q2 miss.
- Chip assembly/test firms ASX (ASX -4.6%) and Siliconware Precision (SPIL -1.7%) have respectively been cut to Neutral and Underweight by JPMorgan.
- As part of a coverage launch for Chinese Internet stocks, Citi has started Dangdang (DANG +6.3%), Weibo (WB +1.4%), Jumei (JMEI +2.5%), and Cheetah Mobile (CMCM +2.1%) at Buy.
Apr. 21, 2014, 1:13 PM
- Taiwan's Economic Daily News reports foundry giant TSMC (TSM -1.3%) aims to grow its chip packaging revenue to $1B in 2015, and $2B in 2016. The paper notes that if TSMC achieves its goal, it would become Taiwan's #3 packaging firm, behind only ASE (ASX -0.7%) and Siliconware Precision (SPIL +0.3%).
- TSMC, which on Thursday posted a Q1 beat and strong Q2 guidance, plans to rapidly grow its packaging sales in part by expanding its service lineup to include cheaper offerings.
- For reference, TSMC's 2014 revenue consensus is currently at $23.2B.
Jan. 7, 2014, 10:42 AM
Dec. 9, 2013, 12:40 PM
Advanced Semiconductor Engineering Inc provides semiconductor packaging and testing services. Its services include semiconductor packaging, production of interconnect materials, engineering testing & wafer probing.
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