Thu, Oct. 1, 2:01 PM
- After outperforming yesterday as markets rallied, chip stocks are doing the opposite today amid a selloff. The Philadelphia Semi Index (SOXX -2.1%) is back below $80.
- Possibly hurting the group: Digitimes reports iPhone chip suppliers are worried Apple could cut its Q4 orders, and that one "major analog IC supplier" has disclosed a slight December order cut. At the same time, Digitimes states suppliers won't know if major order cuts will happen for at leas 1-2 months. iPhone suppliers seeing major losses include NXP (NXPI -4.2%), Avago (AVGO -3.8%), Qorvo (QRVO -4.5%), Cirrus Logic (CRUS -3.1%), Fairchild (FCS -4.9%), and Analog Devices (ADI -3.8%).
- However, it's worth noting several chipmakers lacking iPhone exposure are also down strongly. The list includes Himax (HIMX -3.5%), PMC-Sierra (PMCS -4.1%), InPhi (IPHI -4.6%), Semtech (SMTC -4.6%), and QuickLogic (QUIK -5.7%). Chip IP provider CEVA (CEVA -3.8%) and specialty foundry TowerJazz (TSEM -5%) are also selling off.
- Memory giant Micron reports after the bell.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Tue, Sep. 8, 9:32 AM
- TowerJazz (NASDAQ:TSEM) has signed a deal with an unnamed client to receive a $30M advance payment that will be used for fab capacity expansion.
- CEO Russell Ellwanger uses the announcement to state TowerJazz is seeing "a very high demand, exceeding our current manufacturing capabilities, primarily in our analog [18nm] technology processes," and that (among other things) the company continues to expand capacity and explore M&A opportunities.
- Shares jumped last week after TowerJazz unveiled a new SOI-based RF switch manufacturing process.
Tue, Sep. 8, 9:14 AM
Wed, Sep. 2, 9:28 AM
- TowerJazz (NASDAQ:TSEM) and its TPSCo Japanese analog foundry JV (launched with Panasonic) have developed a manufacturing process for 300mm silicon-on-insulator (SOI) RF chip wafers said to "reduce losses in an RF switch by as much as 30% relative to current technology, improving battery life and boosting data rates."
- TowerJazz adds the process enables chips with a Ron-Coff figure of merit (a metric used to measure RF switching signal losses) of below 90fs, a level "considered unthinkable" for an SOI switch process a few years ago, and that TPSCo's support for a 45nm manufacturing process "enables the integration of an increasing number of RF features in a small footprint on a single, RF-friendly, SOI die."
- SVP Marco Racanelli: "We are already in high volume production with our industry leading SOI technologies in our Newport Beach (USA) and Migdal Haemek (Israel) fabs. Opening up the 300mm Uozu fab in Japan now also gives us additional scale and the supply flexibility needed to capitalize on RF component market growth"
- Shares have jumped to $11.77 premarket.
Wed, Sep. 2, 9:17 AM
Wed, Aug. 5, 6:10 PM
- TowerJazz (NASDAQ:TSEM) rallied to $13.93 today after beating Q2 estimates with the help of strong demand from RF front-end module (e.g. Skyworks), image sensor (e.g. Himax), and power management IC clients. Q3 revenue guidance of $244M is below a $247.5M consensus, but a soft forecast was expected after a long list of chipmakers provided light guidance in recent weeks.
- Q2 Y/Y organic growth (excludes Micron and Panasonic) was 35%. Gross margin (non-GAAP) rose to 37% from Q1's 36% and Q2 2014's 27%. The Israeli specialty foundry ended Q2 with $150M in net debt.
- Q2 results, PR
Wed, Aug. 5, 9:19 AM
- Gainers: FNJN +60%. BIOC +13%. FSLR +11%. KATE +9%. Z +9%. HRB +8%. OAS +8%. TSEM +8%. PCLN +7%. SLTD +7%. MSI +6%. ATVI +6%. SUPN +6%. LC +6%. CTSH +6%. BBL +6%. SDRL +5%.
- Losers: SALE -33%. OHGI -28%. LL -24%. BOOT -23%. ETSY -20%. TRMB -13%. GLUU -10%. RSO -10%. DIS -9%. NYMT -7%. MEMP -7%. GNW -7%. PWR -7%. CERN -6%. PZZA -6%.
Wed, Jul. 8, 11:37 AM
- Chip stocks are underperforming as the Nasdaq registers a 1.2% decline. The Philadelphia Semi Index (SOXX -2.6%) is now down 13% from a June 1 peak of $101.80, and 4% YTD; it's still up 87% from a Nov. 2012 low of $47.58.
- Plunging Chinese equity markets could be weighing on the group. With retail Chinese investors having set up brokerage accounts en masse over the last year, there are plenty of concerns about the reverse wealth effect of a crash. The Economist reccently downplayed those worries, noting a relatively modest 15% of Chinese household assets are invested in stocks.
- Major decliners among chip developers include Skyworks (SWKS -4.9%), Qorvo (QRVO -5.6%), InvenSense (INVN -5.6%), NXP (NXPI -4.7%), Freescale (FSL -4%), MoSys (MOSY -9.4%), AppliedMicro (AMCC -5.1%), Cavium (CAVM -3.8%), and Silicon Motion (SIMO -6.4%). SIMO also fell yesterday after favorably adjusting its Q2 sales guidance. Skyworks and Qorvo sold off yesterday morning before rebounding in afternoon trading.
- Other names tied to the industry that are seeing heavy selling pressure include ARM (ARMH -4%), TowerJazz (TSEM -5.1%), UMC (UMC -4.4%), Veeco (VECO -4.3%), and Axcelis (ACLS -4.6%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Mon, Jun. 22, 1:24 PM
- TowerJazz (NASDAQ:TSEM) states automotive driver-assistance system supplier BrightWay Vision has hired it to manufacture CMOS (silicon) image sensors going into BrightWay's automotive cameras.
- TowerJazz adds the companies have "developed a unique gated pixel" said to have never been produced before on silicon due to its fast-charge transfer requirements, and that the solution both offers better performance and is cheaper than infrared vision alternatives.
- On its Q1 CC (transcript), TowerJazz stated its image sensor foundry business remains strong, and has been able to expand into new markets thanks to the Panasonic JV (TPSco). Taiwan's Himax (NASDAQ:HIMX) is a client.
Fri, Jun. 19, 5:36 PM
Wed, May 13, 2:08 PM
- On top of beating Q1 estimates, TowerJazz (NASDAQ:TSEM) has guided for Q2 revenue of $235M (+/- 5%), above a $233.2M consensus at the midpoint. With shares up 90% from their October low going into earnings and major client Skyworks having provided strong results/guidance, expectations were somewhat high.
- Q1 organic Y/Y revenue growth (takes the Panasonic JV deal into account) was 33%; it was 71% overall. Photomasks entering the Israeli specialty foundry's fabs rose 37% (45% inc. the Panasonic JV). Gross margin rose to 36% from 34% a year ago, and operating expenses 73% to $29.4M. Net debt stood at $162M at quarter's end.
- Q1 results, PR
Wed, May 13, 5:42 AM
Fri, May 1, 2:56 PM
- TowerJazz (NASDAQ:TSEM) is turning in a good day after major foundry client Skyworks beat calendar Q1 estimates with the help of strong iPhone 6/Galaxy S6-related sales, and offered above-consensus Q2 guidance.
- The gains come ahead of TowerJazz's May 13 Q1 report. Shares sold off hard yesterday amid a broad market rout.
Thu, Apr. 30, 3:35 PM
- With the Nasdaq down 1.8% amid an earnings season market selloff, major decliners are easily outnumbering major gainers.
- Notable decliners include action camera leader GoPro (GPRO -5.4%), privileged account protection software vendor CyberArk (CYBR -5.2%), ultracapacitor maker Maxwell (MXWL -5.1%), storage hardware vendor Quantum (QTM -5%), NAND flash controller/4G transceiver maker Silicon Motion (SIMO -5.6%), online video ad platform Tremor Video (TRMR -7%), and specialty foundry TowerJazz (TSEM -6.2%).
- GoPro is returning a chunk of yesterday's big post-earnings gains. Maxwell is down 20% since posting a Q1 miss and soft Q2 guidance a week ago. Silicon Motion, which initially rallied post-earnings, is now down 4% from where it traded before providing decent guidance to go with Q1 results that were in-line with a pre-announcement.
- Previously covered: Baidu, Yelp, Nokia, STMicroelectronics, Flextronics, Calix, MicroVision, Stratasys, Knowles/Audience, QuickLogic, WiLAN
- Notable gainers: Glu Mobile, ClickSoftware, OmniVision, AVG, Cypress, Neustar
Tue, Apr. 14, 2:01 PM
- TowerJazz (NASDAQ:TSEM) has begun ramping production for several new product families offered by analog/mixed-signal chipmaker Semtech (SMTC -2.2%). The chips are being made at TowerJazz's Fab 2 (uses 200mm wafers).
- TowerJazz is less than a dollar away from a 52-week high of $18.29. Semtech is off on what has been a moderately weak day for chip stocks.
Wed, Mar. 25, 12:03 PM
- Chip stocks are particularly hard-hit (SOXX -3.6%) on a rough day for tech. The Nasdaq is down 1.3%, and the S&P 0.7%. Going into today, good earnings reports and ongoing M&A activity had led the Philadelphia Semi Index to rise 10% from its Jan. 30 close; the index remains up nearly 2x from its fall 2012 lows.
- AMD (AMD -7.2%) is a major decliner following a UBS downgrade. AMD rival/GPU giant Nvidia (NVDA -5.2%) and memory giant Micron (MU -3.7%) are also selling off, as are merger partners NXP (NXPI -3.8%) and Freescale (FSL -3.4%), RF chipmakers Avago (AVGO -5.2%), Skyworks (SWKS -5.3%), and Qorvo (QRVO -7.1%), LED/RF chipmaker Cree (CREE -4.1%), and high-flying video processor developer Ambarella (AMBA -4.3%).
- Other decliners include telecom chipmakers/ARM server CPU vendors Cavium (CAVM -4.8%) and AppliedMicro (AMCC -4.4%), microcontroller vendors Atmel (ATML -3.5%), Cypress (CY -5.5%), and STMicroelectronics (STM -3.5%), voice processor developer Audience (ADNC -3.7%), analog/mixed-signal chipmakers Linear (LLTC -3.7%), Maxim (MXIM -3%), and Intersil (ISIL -3.5%), FPGA maker Lattice (LSCC -3.9%), and mixed-signal/wireless charging IC developer IDT (IDTI -5.4%).
- Chip equipment, IP, and foundry providers are also underperforming. Big decliners include ARM (ARMH -4.4%), KLA-Tencor (KLAC -4.2%), Lam Research (LRCX -5.4%), ASML (ASML -4.1%), TowerJazz (TSEM -4.3%), Mattson (MTSN -4.5%), Ultratech (UTEK -4.7%), and Tessera (TSRA -6.1%). ASML has been downgraded to Hold by Banco Santander.
- TSMC (TSM -4.6%) is among the decliners in spite of a Digitimes report stating the foundry giant's sales are expected to rise 0%-5% Q/Q in Q2 - consensus is for a 2% drop - with strong Apple A8 CPU orders offsetting soft Qualcomm Snapdragon 810 orders.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
TSEM vs. ETF Alternatives
Tower Semiconductor Ltd is apure-play independent specialty foundry dedicated to the manufacture of semiconductors.Itmanufactures ICs on silicon wafers, using the customer's proprietary circuit designs.
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