Thu, Jan. 28, 2:02 AM
- Samsung Electronics's (OTC:SSNLF) fourth-quarter earnings displayed a sharp slowdown in profit growth from chips, signaling challenges ahead as the tech giant continues to grapple with weak smartphone sales.
- Net profit in the December quarter fell 40% to 3.2T Korean won ($2.7B), short of market expectations due to non-operating expenses.
- Samsung also warned of a "difficult business environment" and "weaker IT demand," joining Apple in foretelling a downbeat 2016 for the technology sector.
Mon, Jan. 25, 3:34 AM
- Samsung Electronics (OTC:SSNLF) is considering all possible options to grow its home appliances division including mergers or acquisitions, a senior company told reporters.
- Suh Byung-sam, head of Samsung appliances, also said that Haier's acquisition of General Electric's appliances unit will have no serious impact on its business in the near term.
Sun, Jan. 17, 4:53 AM
- Samsung Electronics (OTC:SSNLF) held talks with General Electric about buying the U.S. company's appliances businesses but negotiations broke down on antitrust issues, Yonhap News agency reports.
- China's Qingdao Haier Group agreed to purchase the GE business for $5.4B on Friday.
- Previously: Haier scoops up GE's appliances business for $5.4B (Jan. 15 2016)
Fri, Jan. 15, 2:26 PM
- Up strongly yesterday as markets rallied and TSMC set a 2016 capex budget of $9B-$10B (up from 2015 capex of $8.12B), a slew of chip equipment makers are seeing big losses amid a 3.3% Nasdaq drop after Intel (NASDAQ:INTC) used its Q4 report to disclose its 2016 capex budget has been cut by $500M to $9.5B (+/- $500M). That's still up by $2.2B at the midpoint from 2015's $7.3B, but lower than the $10.1B-$11B spent annually from 2011-2014.
- On Intel's earnings call (transcript), CEO Brian Krzanich indicated the budget cut is related to logic (i.e. CPU) capex, and insisted no specific major factor was responsible. "As we went from the investor meeting into the actual firm forecast for 2016, the team has just sharpened down all the numbers and went through it in more detail."
- Major decliners: Applied Materials (AMAT -4.3%), Lam Research (LRCX -6.5%), KLA-Tencor (KLAC -3.8%), ASML (ASML -6.3%), MKS Instruments (MKSI -3.9%), Ultratech (UTEK -4.9%), Teradyne (TER -3.1%), Advantest (ATE -4.6%), and Ultra Clean (UCTT -5.2%).
- Stifel's Patrick Ho argues the selloff is a buying opportunity. "[W]e have already seen positive preannouncements with two of our names (Ultra Clean, Axcelis) and we expect more upside surprise than those on the downside ... We believe 3D NAND momentum continues to build while there has been some initial buying for 10nm logic (Intel) and foundry (TSMC). We maintain our industry thesis that 3D NAND spending will be the largest incremental driver for spending in 2016, with upside potential from the foundries in 2H16 related to 10nm investments." He likes Applied, Lam, Teradyne, and MKS.
- Credit Suisse's Farhan Ahmad notes Applied, ASML, and Lam have relatively low Intel exposure, and that a Korea Times report indicates DRAM/NAND flash maker SK Hynix's capex might increase in 2016. On the other hand, he's worried current expectations for EUV system shipments (important for ASML) are too optimistic.
- Samsung (OTC:SSNLF), another top-3 chip equipment buyer, reports after the Jan. 21 close. Citi's Atif Malik sees Samsung cutting capex due to lower DRAM-related spending. "We think Samsung moderating memory spend, particularly DRAM, would improve memory supply-demand balance and sustainability of memory equipment spend in C16."
Thu, Jan. 14, 4:09 AM
- Samsung Electronics (OTC:SSNLF) has started production of Qualcomm's (NASDAQ:QCOM) new smartphone processor - the Snapdragon 820 - using an upgraded, lower power version of its 14-nanometer FinFET technology.
- The contract that will help Samsung's chip foundry weather an anticipated loss of business from Apple, which is expected to shift to Taiwan Semiconductor for this year's model iPhone.
- For Qualcomm, the new processor presents a chance for the group to revive its fortunes after disappointing sales of its previous flagship Snapdragon 810 due to concerns about overheating.
Thu, Jan. 7, 7:08 PM
- Samsung Electronics (OTC:SSNLF) expects to report a Q4 op. profit of KRW6.1T ($5.1B), up 15% Y/Y but below a consensus of KRW6.6T. Sales are expected to to total KRW53T ($44B), slightly below a KRW53.8T consensus.
- Weak smartphone and TV demand have been weighing on the Korean IT/electronics giant, as have soft DRAM prices. Samsung's official Q4 numbers will arrive later in January.
Wed, Jan. 6, 2:32 AM
- Samsung Pay is "coming soon" to Australia, Brazil and Singapore, and the mobile payments service is about to become available on Gear S2 smartwatches.
- In a separate statement, Samsung (OTC:SSNLF) said it would make its latest smartwatch compatible with Apple devices, highlighting the latest wrinkle between the world's two biggest smartphone makers.
- An early advantage for Samsung Pay is its compatibility with existing magnetic stripe card readers vs. Apple Pay, which requires retailers to install NFC technology.
Mon, Jan. 4, 5:04 AM
- Due to weak global economic conditions and heightened competition, Samsung Electronics (OTC:SSNLF) is expecting a difficult business environment in 2016.
- Chief Executive Kwon Oh-hyun told employees in a New Year's address that low global growth will persist this year, with greater uncertainty stemming from issues such as financial risks for emerging countries.
- The comments come amid growing concerns that October-December results for the world's biggest maker of smartphones and chips may be weaker than previously expected.
Sun, Jan. 3, 9:16 AM
- When the Centers for Disease Control and Prevention published new guidelines 18 months ago regarding the radiation risk from cellphones, it used unusually bold language: "We recommend caution in cellphone use."
- Within weeks, though, the CDC reversed course. It no longer recommended caution, and deleted a passage specifically addressing potential risks for children.
- Mainstream scientific consensus currently holds that there is little to no evidence that cellphone signals raise the risk of brain cancer or other health problems. Nevertheless, more than 500 pages of internal records obtained by NYT, along with interviews with former agency officials, reveal a debate and some disagreement among scientists and health agencies about what guidance to give as the use of mobile devices skyrockets.
- Related tickers: NOK, AAPL, BBRY, MSI, SNE, VZ, TMUS, T, S, OTC:SSNLF, OTC:HTCXF, OTCPK:ZTCOF, OTCPK:ZTCOY
Dec. 31, 2015, 11:29 AM
- Aided by strong smartphone and telecom equipment sales in emerging markets, Huawei expects to report its 2015 sales rose 35% to RMB390B ($60B), topping a prior target for 20% growth.
- The closely-held Chinese company adds it saw a "solid increase in profits and cash flow." A formal annual report typically arrives around early April.
- Though its networking and telecom equipment is blacklisted by many U.S. enterprises and carriers due to security/spying fears, Huawei's strong growth elsewhere (aided by aggressive pricing) has made it a thorn in the side of everyone from Samsung (OTC:SSNLF) to Cisco (NASDAQ:CSCO) to Nokia (NYSE:NOK) and Ericsson (NASDAQ:ERIC). IDC estimates Huawei had a 7.5% Q3 smartphone unit share on the back of 26.5M shipments (+60.9% Y/Y).
Dec. 30, 2015, 10:02 AM
- Korea's Electronic Times reports Samsung (OTC:SSNLF) and LG Display (LPL -0.6%) are close to final deals with Apple (NASDAQ:AAPL) to supply OLED displays for iPhones.
- It adds the companies plan to spend a combined KRW15T ($12.8B) in capex over the next 2-3 years to expand their OLED capacity, and that (in-line with past deals with suppliers) Apple will likely provide some funding to help the companies with their investments. Samsung will likely get bigger order volumes than LG.
- The report follows one from Japan's Nikkei a month ago stating Apple will launch iPhones featuring OLEDs in 2018, and that the company will work with suppliers "over the next year or so" to see if it can obtain enough displays and eliminate technical issues such as performance degradation.
- OLED IP/materials supplier Universal Display (OLED +5.1%) is rallying once more, after having previously done so on the Nikkei report. Shares are within $3 of a 52-week high of $57.93, and up 99% YTD.
Dec. 28, 2015, 2:03 AM
- Although it likely won't go on sale to at least February, Samsung Electronics (OTC:SSNLF) is planning an initial production run of about 5M of its upcoming Galaxy S7 smartphones, Electronic Times reports.
- Like the last release, the launch will include two different versions: a 5.2-inch flat-screen, and a 5.5-inch 'Galaxy S7 edge'.
- Separately, Samsung Group affiliate Samsung SDI (OTC:SSDIY) has been ordered to unload a 2.6% stake in de facto holding company Samsung C&T (totaling $622M) to abide by the Seoul's latest cross-shareholding rules.
Dec. 22, 2015, 7:10 PM
- An ITC administrative law judge (ALJ) has ruled Nvidia (NASDAQ:NVDA) infringes three Samsung (OTC:SSNLF) patents. The case will now go before the full commission.
- The news comes eight days after the full ITC commission upheld an ALJ's ruling declaring Samsung and Qualcomm didn't infringe two Nvidia patents, and that a third patent (though infringed) is invalid. Samsung had countersued Nvidia before the ITC, and both companies are suing each other in Virginia.
- Nvidia, which had argued Samsung's patents cover older chip technology that's no longer used: "We look forward to seeking review by the full ITC which will decide this case several months from now." One of Samsung's patents is set to expire next year.
- NVDA -0.7% after hours to $32.70.
Dec. 22, 2015, 2:57 AM
- Samsung Electronics (OTC:SSNLF) will begin making new chips for Advanced Micro Devices (NASDAQ:AMD) next year, South Korea's Electronic Times reports.
- The paper said Samsung's foundry business and Globalfoundries will jointly start producing a central processing chip as well as a graphics processing chip for AMD using their 14-nanometre technology.
- The firm already makes chips for companies such as Apple and Nvidia.
Dec. 15, 2015, 4:54 PM
- For once, Apple (NASDAQ:AAPL) and Samsung (OTC:SSNLF) are on the same side of a legal battle: ParkerVision (NASDAQ:PRKR) has sued both companies, along with LG and Qualcomm (NASDAQ:QCOM), in an ITC complaint alleging infringement of four patents. Products declared to be infringing include the iPhone 6, the Galaxy S6, LG's G3, and the iPad Air 2. Import bans (could be a very tough sell) are sought.
- A ParkerVision suit against Samsung, Qualcomm, and HTC remains outstanding. In October, a federal appeals court (the CAFC) denied the company's petition for a rehearing of a non-infringement ruling related to a prior Qualcomm suit.
Dec. 14, 2015, 6:48 PM
- Two months after an ITC administrative law judge ruled Samsung (OTC:SSNLF) and Qualcomm (NASDAQ:QCOM) didn't infringe two Nvidia (NASDAQ:NVDA) GPU patents and deemed a third patent that they were found to infringe to be invalid, the ITC commission has upheld the judge's findings.
- Nvidia, whose Tegra processors directly compete against Qualcomm's Snapdragon processors and indirectly compete against Samsung's Exynos processors: "While today’s ruling ends this particular case in the ITC, we remain firm in our belief that our patents are valid and have been infringed and will look to appeal the ITC’s decision."
- Samsung has counter-sued Nvidia in both a Virginia court and before the ITC; those cases remain pending. Each company has also sought to have the other's patents invalidated by the USPTO.
Industry: Semiconductor - Broad Line
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