Apple (APPL) foundry Taiwan Semiconductor Manufacturing Corp. (2330.Taiwan/TSM), or TSMC, has a new source of revenue – a better technology known as Integrated Fan-Out (InFO) that packages mobile chips on top of a circuit board. Apple reportedly will use InFO for its iPhone 7 next year.
For details on InFO, see my October 22 blog “TSMC: Apple Will Pioneer InFO To Build Thinner Phones, Bernstein Raises Target”.
Taiwan’s Economic Daily reported yesterday that other customers, such as Qualcomm (QCOM), Huawei‘s HiSilicon and MediaTek (2454.Taiwan), will adopt TSMC’s InFO too, as early as the end of the first-quarter next year, potentially threatening existing packaging companies Advanced Semiconductor Engineering (2311.Taiwan), or ASE and Siliconware Precision Industries (2325.Taiwan), or SPIL.
This reporting is not reliable, according to Goldman Sachs‘ Ricky Lee:
We believe the early adoption of TSMC InFO by top fabless companies in 1H16 is unrealistic for the below reasons: 1) we believe the majority of Qualcomm’s 2016 16nm SoC is likely to be fabricated at Samsung rather than TSMC; 2) Mediatek’s 16nm chips should only enter tape-out phase in 1H16, leading to late 2016 volume shipments to the market, in our view; 3) we don’t think major fabless companies would be eager to adopt brand new solutions in the first year of rollout due to limited track record on manufacturing cost, yield rate, and product performance.
DAQ:AMKR) had its price target boosted by analysts at Topeka Capital Markets from $9.00 to $11.00 in a research report issued on Monday, The brokerage presently has a “buy” rating on the stock. Topeka Capital Markets’ price target points to a potential upside of 73.78% from the company’s previous close.
In other Amkor Technology news, Director Robert Randolph Morse bought 10,000 shares of the business’s stock in a transaction on Wednesday, August 12th. The shares were acquired at an average cost of $4.18 per share, for a total transaction of $41,800.00. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Winston J. Churchill bought 11,300 shares of the business’s stock in a transaction on Tuesday, August 11th. The shares were acquired at an average price of $4.35 per share, for a total transaction of $49,155.00.