TSM - Taiwan Semiconductor Manufacturing Company Limited
| Previous Close | 40.86 |
| Open | 41.18 |
| Bid | 40.81 x 4000 |
| Ask | 41.78 x 800 |
| Day's Range | 41.15 - 41.73 |
| 52 Week Range | 34.21 - 45.64 |
| Volume | 4,660,484 |
| Avg. Volume | 8,030,671 |
| Market Cap | 208.283B |
| Beta (3Y Monthly) | 1.01 |
| PE Ratio (TTM) | 18.63 |
| EPS (TTM) | 2.23 |
| Earnings Date | N/A |
| Forward Dividend & Yield | 1.28 (3.12%) |
| Ex-Dividend Date | 2019-06-24 |
| 1y Target Est | 47.36 |
- Zacks
Chipmakers on a Roll This Earnings Season: 3 Solid Buys
Chipmakers are not only smashing estimates this earnings season, China's latest plan to spur economic growth will surely boost the stocks further.
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- Zacks
Applied Materials Is Ready For AI: July Quarter Earning Thursday After Bell
Applied Materials is the global leader in semiconductor equipment to manufacture integrated circuits, AKA semiconductor chips.
- GuruFocus.com
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- ETF Trends
Trade War Lures Options Investors to Taiwan ETF
Trade tensions between the U.S. and China are weighing on Taiwanese stocks as highlighted by a month-to-date decline of more than 3% for the iShares MSCI Taiwan ETF (EWT) . While EWT has struggled in recent weeks, there may be an opportunity with the largest Taiwan ETF. The $3 billion EWT, which tracks the MSCI Taiwan 25/50 Index and recently turned 19 years old, holds 89 stocks.
- Investing.com
StockBeat - Semis Swoon as Huawei Gets Caught Up in US-China Crossfire Again
Investing,com - President Trump took aim at key Chinese chip customer Huawei Friday and said it was “fine” if the U.S. pulls out of trade talks with China planned for September. But investors in semis disagree and have pushed many chips lower, led by a slump in Micron (NASDAQ:MU).
- Bloomberg
How Huawei Is Trying to Trade War-Proof Its Software
(Bloomberg) -- Huawei Technologies Co. on Friday offered the first glimpse of an in-house software that may someday replace Google’s Android, an important step toward reducing its reliance on American technology.“HarmonyOS,” previously code-named “Hongmeng,” is a long-gestating operating system that could soon find its way into smart TVs and lower-end phones. The OS embodies Huawei’s shift toward self-reliance as American sanctions cut it off from vital technology, and escalating U.S.-Chinese tariffs jeopardize a carefully orchestrated global supply chain. Huawei’s efforts actually mirror Apple Inc.’s: to develop vertically-integrated supply and production lines that help reduce exposure to inclement market forces, unreliable suppliers and unpredictable events like international trade disputes.The newly hostile environment is putting to the test not just Apple’s “Designed in California, Assembled in China” slogan, but the overall preparedness of two smartphone-making giants as the decades-old made-in-China model fractures. Here’s a look at how dependent Apple and Huawei are on external suppliers.OS: Apple’s strength has always been the integration of software with hardware, and it has absolute control over iOS. Huawei is trying to do the same with HarmonyOS, but it has everything left to prove, starting today. For the foreseeable future, Huawei remains dependent on Android for its mainstream smartphones, especially outside China. Advantage: Apple.Software ecosystem: The enormous fortress of iTunes, the App Store and a dedicated following of enthusiastic app developers is a huge and profitable edge for Apple’s mobile business. Huawei will need developers to build valuable apps for its ecosystem, which is another major question mark. Advantage: Apple.Processors: Both design their own processors but neither controls their actual production. Instead, they rely on Taiwan Semiconductor Manufacturing Co. to put them together and on SoftBank Group Corp.’s Arm for the licenses they need to design semiconductors. Advantage: Neither.Memory and storage: SK Hynix Inc., Samsung Electronics Co. and Micron Technology Inc. anchor the two smartphone makers’ storage needs. The Korean duo have a significant lead on RAM modules. Neither Apple nor Huawei has the capability to produce their own storage chips, though Huawei recently launched the Nano Memory Card. Advantage: Neither.Display: Samsung is the biggest supplier of the organic light-emitting diode displays that Apple uses for its iPhone X and XS top-tier devices. Others such as Japan Display Inc. and LG Display Co. provide liquid-crystal display panels for the likes of the iPhone XR and earlier models. While Huawei is in much the same boat, it’s increasingly relying on home-team vendor BOE Technology Group Co. for its OLED panels, which are starting to win customers beyond China. In short, neither is capable of doing the manufacturing itself. Advantage: Neither.Modems: Essential to mobile connectivity, modems are only going to become more important with the transition to next-generation 5G technology. Apple recently agreed to buy Intel’s modem division, a step toward designing its own 5G chips. But Huawei is already among the leaders on this front, having announced the Balong 5G01 modem in February. As with processors, neither has its own silicon facilities so they’ll again be reliant on specialist foundries. Advantage: Huawei.Assembly: Apple and Huawei are heavily reliant on assemblers such as Hon Hai Precision Industry Co., also known as Foxconn. Both also tap other Taiwanese contract manufacturers -- such as Pegatron Corp., Compal Electronics Inc. and Quanta Computer Inc. -- to varying degrees, while Huawei also relies on Flex Ltd. But unlike Apple, which decided years to outsource much of its global production in China, Huawei operates a few highly automated lines to make top-tier P series phones. Advantage: Huawei.Others: Apple and Huawei rely on a plethora of companies elsewhere in their smartphone production. U.S. companies Skyworks and Qorvo provide radio-frequency modules to facilitate 3G and LTE communications. Dutch semiconductor company NXP is the go-to supplier of NFC parts required for contactless payments. Sony Corp. is the undisputed leader in camera sensors and modules. And Apple-funded Corning Inc. supplies toughened glass. Advantage: Neither.Apple and Huawei appear to be the brains orchestrating a huge, international body of engineering muscle. They design their own software, processors, modems and phones, but ultimately have to hand those plans off to a legion of transnational suppliers and manufacturers.(Updates with OS’s unveiling from first paragraph.)To contact Bloomberg News staff for this story: Vlad Savov in Tokyo at vsavov5@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- InvestorPlace
4 Nanotech Stocks to Watch for Explosive Innovation
[Editor's note: "4 Nanotech Stocks to Watch for Explosive Innovation" was previously published in August 2018. It has since been updated to include the most relevant information available.]Within the broad and rapidly expanding technology sector, nanotechnology offers perhaps the most profound potential impact for society. On a purely scientific level, nanotech involves any innovation conducted at the nanoscale, which is between one to 100 nanometers. As this technology is perfected, it opens up the door to previously impossible mechanisms, making nanotech stocks a must-watch category.But what's behind this innovation? Physicist Richard Feynman, during a lecture in December 1959, introduced the concept that future technologies would enable scientists to "manipulate and control individual atoms and molecules." Over a decade later, professor Norio Taniguchi coined the term nanotechnology. However, it took substantial advancements in microscopic platforms before scientists could begin practical experimentations.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOnce they did, the positive implications from nanotech integration became readily apparent. According to Nano.gov, 25.4 million nanometers can "fit" inside an inch. A single sheet from a typical newspaper is approximately 100,000 nanometers thick.This tech and its astonishing scale will clearly set the pathway towards the next generation of super-computers. But this innovation reaches much further than that. With the ability to manipulate individual atoms, healthcare and the pharmaceutical industry can finally move beyond researching diseases, and towards their complete elimination. * 10 Cyclical Stocks to Buy (or Sell) Now Without question, nanotech stocks have the capacity to deliver enormous gains. Here are four examples to keep a close eye on. Nanotech Stocks to Watch: IBM (IBM)Source: Shutterstock I know exactly what you're thinking. With nanotech stocks representing the cutting edge in scientific innovations, why mention a legacy institution like IBM (NYSE:IBM)? It's a fair point. However, IBM is actually synonymous with this innovation. To not include IBM would be a crime against intellectual honesty.Primarily, "Big Blue" invented the scanning tunneling microscope in 1981 that allowed researchers unprecedented access to individual atoms and molecules. As Nano.gov confirms, the invention of this highly-specialized microscope catapulted the nanotech industry. Without it, scientists could only theorize about this concept.But what I appreciate about IBM as a viable opportunity among nanotech stocks is its fundamental stability. True, shares haven't performed the way investors would have liked in recent years. But this is a company that we can trust will be around in the next 50 to 100 years.Moreover, management is shifting away from its legacy businesses towards sectors that are relevant today. Whether we're talking nanotech, artificial intelligence or the blockchain, IBM has it covered. Plus, it currently offers a dividend yield of 4.6%. Nanotech Stocks to Watch: Taiwan Semiconductor (TSM)Source: Shutterstock Semiconductor companies have recently struggled with the harsh realities of Moore's Law. This is "a principle that states gains in CPU performance sharply declines once technology passes a critical maturation point."Obvious, semiconductors will continue to make strides. However, each dollar invested provides an increasingly smaller performance return. In prior generations, it was thought that a limit could be reached on how small a chip can get.The nanotech industry proved that we still have room to push the dimensional envelope further. As one of the top nanotech stocks within this sector, Taiwan Semiconductor (NYSE:TSM) is certainly a must-watch name.The challenge with most direct nanotech stocks is that they're incredibly speculative. TSM has a proven history of success. Of course, you pay for that privilege in its current share price, so upside potential is comparatively limited. Still, I like the idea of not getting completely wiped out. * 10 Cyclical Stocks to Buy (or Sell) Now Nanotech Stocks to Watch: Thermo Fisher Scientific (TMO)Source: Shutterstock When discussing nanotech stocks, a tendency exists to focus only on computers and electronics. Though they definitely can advantage the technology's performance and productivity output, they're not the only beneficiaries. With the ability to dive deeper into molecular structures, the biotech industry could likely generate the most meaningful impact.That's why investors should take a long look at Thermo Fisher Scientific (NYSE:TMO). As a medical diagnostics and research specialist, Thermo Fisher provides biotech and healthcare firms of all sizes with necessary equipment. As nanotech concepts increasingly transition from theory into reality, TMO is on the ground floor distributing these applied-science products.Better yet, TMO is an established, stable investment. On a year-to-date basis, TMO stock has gained 20%. Over the trailing five years, shares have returned over 100%. As with the other industry stalwarts, you pay for the privilege. But Thermo Fisher is unlikely to leave you hanging. Nanotech Stocks to Watch: Nanometrics (NANO)Source: Shutterstock Smaller, more powerful semiconductors and related electronic devices are only part of the nanotech story. At some point, we need companies that can drill down into the minutiae to perform assessment and quality-control operations. This is where Nanometrics (NASDAQ:NANO) comes into play.As a specialist in metrology, or the scientific study of measurements, Nanometrics develops the components used in semiconductor and solid-state device fabrication. Their platforms also dramatically improve manufacturing productivity while maintaining accuracy and precision.Sentiment has improved dramatically this year after some choppy performances in years past. NANO stock is up over 67% since January's opener.Those who are looking for a discounted opportunity may be somewhat disappointed with NANO's dramatic rise. However, the lift is fundamentally justified. Nanometrics features an exceptionally robust balance sheet, with highlights being zero debt and steadily rising cash. That gives management an extra cushion for future product investments. * 10 Cyclical Stocks to Buy (or Sell) Now Furthermore, NANO maintains strong profitability margins and above-average revenue growth. Recent outperformance in sales suggests more upside remaining for NANO stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cyclical Stocks to Buy (or Sell) Now * 7 Biotech ETFs That Should Remain Healthy * 7 of the Hottest AI Stocks to Buy Now The post 4 Nanotech Stocks to Watch for Explosive Innovation appeared first on InvestorPlace.
- Motley Fool
Why ASML Holding Rose 10.4% in July
The semiconductor equipment maker rose on earnings and optimism around logic chips in the second half.
- Motley Fool
Why KLA Stock Rose 15.3% in July
Indications that the semiconductor cycle might be bottoming out boosted its shares.
- Bloomberg
Signs of an End to the Tech Slump Offer Hope to Asia’s Economies
(Bloomberg) -- The worst may soon be over for an electronics slump that has dogged Asia’s export-driven economies.Goldman Sachs Group Inc. economists said a rebound in technology exports is overdue, citing gradual improvement in South Korean trade and evidence the memory-chip cycle is reaching its low point.While South Korean semiconductor shipments plunged 28% by value in July, they rose 15% by volume. The nation’s inventories of semiconductors fell a second straight month in June, a sign that orders are picking up.“The question is when South Korea’s exports will bottom out,” said Stephen Lee, an economist at Meritz Securities Co. in Seoul. “It could be the third quarter, either August or September.”The slump in tech exports has been one of the biggest drags on Asia’s manufacturing base. Key gauges for factory sentiment continue to show contractions for output in Japan, South Korea, Malaysia and Taiwan. Real investment growth across Asia slowed to 2% in the first quarter from 7% a year ago, according to S&P Global Ratings.Industry announcements across Asia signal a possible recovery, which is good news for a region that accounts for more than 60% of global economic growth.Samsung Electronics Co., the world’s biggest memory-chip maker, said Wednesday that data centers -- its biggest customers -- have started buying again, causing demand to increase.The world’s largest contract chip maker, Taiwan Semiconductor Manufacturing Co., surprised analysts last month when it projected current-quarter revenue ahead of estimates. TSMC’s business has bottomed out and should begin to rebound, Chief Executive Officer C. C. Wei said. The Apple Inc. supplier sees “very, very strong demand” in the second half of 2019, he said.Smartphone DemandApple’s suppliers -- dominated by Asia-based factories -- are preparing to produce components for up to 75 million new iPhones in the second half, roughly the same number as a year earlier, Bloomberg News reported.Apple’s sales forecast of $61 billion-$64 billion for the current quarter not only topped analysts’ estimates but also signaled year-over-year revenue could grow, thanks to healthy demand for iPhones.Another reason for optimism is that Samsung will begin selling its Galaxy Fold smartphone in September. The world’s biggest handset maker hopes the foldable phones, coupled with fifth-generation wireless networks, will kick the mobile industry back into a boom by giving consumers a compelling reason to upgrade their devices.“It’s been pretty awful but probably not as bleak going forward as it has been,” Sian Fenner, lead Asia economist at Oxford Economics, said of the tech cycle.Early DaysFor sure, it’s too early to say for certain the worst is over.After all, Singapore’s electronics exports fell in June to their lowest since at least 1997. In Japan, shipments of electronic components and chip-making equipment to China both dropped by well over 20% in June.Tuuli McCully, head of Asia-Pacific economics at Scotiabank in Singapore, said that while the electronics sector may bottom late this year, “significant downside risks remain.”In addition to the U.S.-China trade war and a slowing global economy, demand for new smartphones is plateauing. Rising tensions between Japan and South Korea could also hurt. Japan has already slapped curbs on exports to South Korea of materials vital to manufacturing of semiconductors and displays, and things could get worse.“Even before the trade war hit, there was a bit of a moderation in the tech cycle,” said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. in Singapore. “Smartphones have reached a saturation point.”Still, optimists argue that comparisons with robust growth numbers for electronics exports from a year ago is making the weakness look worse than it is.Beyond smartphones, Asia is also leading spending on the Internet of Things, accounting for around 36% of global spending this year, followed by the U.S. and Western Europe with 27% and 21%, respectively.“Initial shocks from the trade war might be behind us,” Goldman economists wrote in a note.\--With assistance from Debby Wu.To contact the reporters on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net;Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net;Sam Kim in Seoul at skim609@bloomberg.netTo contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Henry Hoenig, Nasreen SeriaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- InvestorPlace
Advanced Micro Devices: Playing for Scale
Before Advanced Micro Devices (NASDAQ:AMD) released second-quarter earnings on July 30, I fretted.A strong quarter was expected but already priced in, I wrote. I called AMD's valuation difficult to justify.Sure enough the numbers, earnings of $35 million, 3 cents per share, on revenue of $1.53 billion, sent the stock skidding 10%, even before the market re-opened on July 31. AMD share price of about $30.50 per share was due to open August 1.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAMD took its investors on an exciting ride over the last few years, from $2 per share in 2015 to its most recent highs of $34, on the strength of its beating Intel (NASDAQ:INTC) in microprocessors with its Ryzen designs. * 7 A-Rated Stocks Under $10 But it's time to take AMD seriously, as a potential long-term holding and not just a trade. How does it measure up? AMD Stock Still Too SmallAMD has beaten Intel on the most public stages in the market, on desktop PCs, which have recently gotten their mojo back.But in the cloud, AMD doesn't offer the scale and pricing Intel does. Alphabet (NASDAQ:GOOGL) is rumored to be looking at AMD EPYC chips for its servers but, so far, that's just a rumor. At the present time, AMD's share of the server chip market hovers around 3%. Its desktop and laptop market share averages 15%. While AMD has boosted its quality against Intel, thanks in part to Taiwan Semiconductor (NYSE:TSM), which can get circuit lines 7 nanometers (nm) apart while Intel is still struggling with 10 nm, it remains too small to deliver orders to the scale companies like Google need. Thus the Intel monopoly remains largely intact.In its other niche, graphics processors, AMD must fight Nvidia (NASDAQ:NVDA) the way it once fought Intel on price. Nvidia's market share in discrete processors hovers between 75%-80%. In the broader graphics market Intel still has 66% of the sales, although it was 75% a few years ago. Where AMD is gaining share in graphics, it's usually at Intel's expense, not Nvidia's.Where AMD has prospered is in the flashy front of the market, on devices bought by individuals, rather than in the meaty heart of the market, in clouds and servers. In gaming, AMD is the value choice, as it was once the value choice against Intel in PCs. Advanced Micro Devices Is Up Against the CzarsNvidia really takes AMD down in the cloud.With a market cap of almost $103 billion, three times that of AMD, and twice its sales, Nvidia can compete here, especially with its $6.9 billion acquisition of Mellanox (NASDAQ:MLNX), which has yet to close. Nvidia is also way ahead in the "sexy" part of the cloud, in deep learning and artificial intelligence software. Nvidia is much closer to big cloud orders than AMD. Here, chip makers must compete with one another and with the efforts of the Cloud Czars themselves. Nvidia graphics processors still hold a leadership position against Google's Tensor chips.Hardware is becoming software, and in this new world the Cloud Czars have everyone outgunned. AMD makes some nice cloud chips but, at its present size, they'll never be more than niche offerings. The Bottom Line on AMD StockIn the 2020s it will take more than great design for a chipmaker to prosper. It will take scale, and a wide product line that includes software.Despite its weaknesses Intel still has the scale to compete in this new world. Nvidia is acquiring it. It may be too late for AMD to get there before the Cloud Czars take over the chip world.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks Under $10 * 8 Monthly Dividend Stocks to Buy for Consistent Income * 7 Disruptive Biotech Stocks to Buy for 2025 The post Advanced Micro Devices: Playing for Scale appeared first on InvestorPlace.
- Motley Fool
Intel Gives Chip Stocks Their Third Boost in a Week
The processor giant released a better-than-feared earnings report on July 25 that bodes well for the semiconductor industry’s second half of 2019.
- Zacks
Is SPDR S&P Emerging Markets Dividend ETF (EDIV) a Strong ETF Right Now?
Smart Beta ETF report for EDIV
- Bloomberg
AMD Sales Forecast Misses on Tepid Game-Console Chip Demand
(Bloomberg) -- Advanced Micro Devices Inc., the No. 2 maker of computer processors, gave a disappointing third-quarter sales forecast, indicating lower-than-expected orders for game-console chips from Microsoft Corp. and Sony Corp., two of its biggest customers.Revenue in the current period will be about $1.8 billion, Santa Clara, California-based AMD said Tuesday in a statement. That missed the average of analysts’ projections of $1.94 billion, according to a survey by Bloomberg. The company also pared its forecast for annual revenue, and shares tumbled in extended trading.Chief Executive Officer Lisa Su is trying to remake her company into more than just a purveyor of cut-price alternatives to Intel Corp.’s PC chips. While sales of PC-related products are improving, the company said revenue is taking a hit because demand from game-console makers is falling short of its original forecasts this year. In the second quarter, revenue in the division that includes server processors and custom chips for consoles declined 12%, AMD said.Console sales are dropping as the current versions of Microsoft’s Xbox and Sony’s PlayStation are in their seventh year of life and the companies have started talking about their replacements.Su, the chip industry’s first female chief executive officer, said her company is where she had hoped it would be in terms of unveiling competitive chips, and AMD is ready to take back share from Intel, whose products still garner 90% of revenue in the processor market. As the year progresses, she said, more of AMD’s recently announced chips will be available in electronic devices, boosting the company’s market footprint.“There’s a real pull for the products,” Su said. “I feel really good about the customer engagements.”The company’s second-quarter net income fell to $35 million, or 3 cents a share, compared with $116 million, or 11 cents, a year earlier. Excluding certain items, profit in the recent period was 8 cents, matching analyst predictions. Revenue in the period was $1.53 billion, 13% lower than a year earlier but topping analysts’ average projection of $1.52 billion.Gross margin, or the percentage of sales remaining after deducting the cost of production, widened to 41% in the second quarter, in line with the average analyst estimate. A year earlier, that measure of profitability came in at 37%.AMD said it now expects full-year revenue to gain at a percentage in the mid-single digits, compared with an earlier prediction for annual sales to rise in the high single digits. Analysts had projected an annual sales increase of about 6%. At the same time, the company slightly raised its forecast for gross margin for all of 2019, to 42%.The company’s shares fell about 5% in extended trading following the report, after earlier climbing 1.2% to $33.87 at the close in New York. The stock has been on a tear this year, gaining 83% so far.Last week, Intel gave an upbeat forecast and said second-quarter demand had exceeded its earlier outlook. Buyers of computer components stocked up ahead of the potential for tariffs to be levied on trade between the U.S. and China, Intel said. Still, executives warned that the temporary boost can’t be expected to continue. Demand for servers from corporations and government agencies was weak, particularly in China.Under Su, AMD has been staging a comeback in the lucrative business of chips for servers, machines that are the backbone of corporate networks and the internet. The company owned about a quarter of that market a decade ago, until delays to new chips and lagging performance allowed Intel to banish AMD to less than 1% market share. AMD’s new Epyc range of server processors is aimed at clawing back those lost orders.AMD is also trying to exploit Intel’s delays in shifting production to more advanced technology. AMD now outsources manufacturing of its best chips to Taiwan Semiconductor Manufacturing Co., which analysts calculate is now more than a year ahead of Intel in implementing new processes.Su’s efforts have had an impact. At the end of last year, AMD had 3.2% of the market for server chips, up from 0.8% 12 months earlier. AMD has made faster progress in laptops and desktop computers, where it has more than 10% share of shipments, according to Mercury Research.(Updates with CEO comment in sixth paragraph.)To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Motley Fool
Another Semiconductor Bellwether Points to Chip Strength in the Second Half
The always-conservative Texas Instruments guided to sequential growth.
- Zacks
Marijuana & Blockchain ETFs: Should You Buy?
Cannabis and blockchain are high-risk, high-reward areas of the market. Should investors consider these ETFs?
- Investor's Business Daily
Semiconductor Companies Still Counting On Second-Half Recovery
The forecast for a chip industry recovery in the second half of 2019 is in doubt at the start of second-quarter earnings season. Chip stocks have rallied lately on hopes for a recovery.
- Bloomberg
Apple Suppliers See Demand for New IPhones Stabilizing This Year
(Bloomberg) -- Apple Inc.’s suppliers are preparing to produce components for up to 75 million new iPhones in 2019’s second half, roughly the same number as a year earlier, according to people familiar with the matter.The volumes planned for the next iPhone launch cycle would signal steady demand for the company’s most important product, despite U.S.-China trade tensions and a decline in the overall smartphone market. The Cupertino, California-based technology giant stopped divulging iPhone shipment numbers in the holiday quarter last year as unit growth turned negative and started providing metrics to highlight the growth of services such as Apple Music. Analysts estimate Apple sold 70 million to 80 million new iPhones in the second half of last year.The company’s Asian suppliers are gearing up to produce components for three new iPhone models to meet holiday-season demand, the people said, asking not to be identified citing internal estimates. The U.S. company’s Asian partners could ramp production up to 80 million new phones if needed, one of the people said. Main iPhone assembler Foxconn Technology Group has stepped up hiring in Shenzhen and is offering staff about 10% more than a year ago to secure a peak-period workforce, another person familiar with the matter said.The iPhone assembler Pegatron Corp. added to gains and closed 2.3% higher, while lens maker Largan Precision Co. rose 2.6%. Taiwan Semiconductor Manufacturing Co. pared earlier losses and closed unchanged.Apple has announced new iPhones each September since 2012 and the new models typically go on sale in the final weeks of that month. The company reports third quarter earnings on July 30, and the firm’s guidance could indicate its expectations for iPhone sales at the end of the fourth quarter ending in September. Apple still provides iPhone revenue figures, with the company generating $52 billion from iPhones last holiday quarter, a 15% decline, and $37 billion from new iPhones in the last fourth quarter, a 27% increase. Those numbers, however, include a mix of both last year’s new models and earlier versions of the iPhone.Jeff Pu at GF Securities estimates that shipments of newly released iPhones will rise to 74 million in the second half, up about 7% from his estimate of 69 million last year, while TF International analyst Ming-Chi Kuo forecast that Apple would sell 75 million to 80 million new iPhones in the second half of 2018. This year’s volumes may signal stabilization after a year of uncertainty, though that’s a far cry from the double-digit growth numbers of years past.Of course, the fact that Apple suppliers plan to produce parts for 75 million new iPhones doesn’t necessarily mean the company will sell that many. Apple will assess sales after launch and the total shipments may not reach that mark. The company declined to comment.Apple is struggling with soft smartphone demand as people take longer to replace their gadgets and Chinese rivals like Huawei Technologies Co. grab market share. The trade war is also denting Chinese economic growth while souring consumers there on American brands. Analysts have been betting on a 13.3% drop in iPhone shipments to roughly 189 million in fiscal 2019, according to average projections compiled by Bloomberg.“Apple’s growth has become more cyclical and slowed along with the global smartphone market, leaving it dependent on iPhone upgrades to drive sales,” Bloomberg Intelligence analysts John Butler and Boyoung Kim said. “Apple’s inability to raise iPhone prices much higher is constraining growth. Weakness in China due to competition and the trade war with the U.S. remains an issue.”While Apple is relying on services to take up the slack, sales of the gadget remain its largest revenue driver and the U.S. company needs to get the latest devices into the hands of its users so they can actually download and subscribe to new services like the upcoming Apple Card, Apple Arcade gaming service, and Apple TV+, a Netflix rival.The major attraction in this year’s models lies in enhanced cameras: the two high-end models to replace the iPhone XS and iPhone XS Max will include three back cameras, up from two, and a successor to the iPhone XR will include a second back camera. The third camera will serve as an additional ultra-wide lens, Bloomberg News reported in January, allowing the phone to automatically repair parts of an image that may be initially chopped out of a frame. It will also enable a wider range of zoom. All three new models will also include faster A13 processors built by TSMC, Bloomberg News reported in May.Beyond the additional rear cameras, the new iPhone models will look similar to the 2018 versions, which looked like the 2017 iPhone X. Apple is planning a more extensive revamp of the iPhone with an updated design, 5G connectivity, and new augmented reality cameras for 2020, Bloomberg has also reported.Read more: Apple’s 2019 and 2020 iPhone and iPad PlansWall Street sentiment on Apple may be starting to brighten somewhat after a prolonged period of investor-pessimism. Morgan Stanley boosted its target price on the stock this week, days after another firm upgraded the shares. Apple may benefit from a U.S. ban on the sale of American technology to Huawei, not to mention Japanese exports curbs to Korea that threaten Samsung Electronics Co. Apple’s main chipmaking partner, TSMC, also helped allay fears of a protracted industry slump when it projected current-quarter revenue ahead of estimates. Longer term, investors hope Apple can rejuvenate its most iconic gadget.(Add share price changes in fourth paragraph.)To contact the reporters on this story: Debby Wu in Taipei at dwu278@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.net;Mark Gurman in San Francisco at mgurman1@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- ETF Trends
A Steady Emerging Market Investors Aren’t Impressed With
Taiwanese stock are often among the least volatile in the emerging markets space and the iShares MSCI Taiwan ETF (EWT) is up 13% year-to-date, but the global investors don't appear enthusiastic about the country's equity market. To some extent, Taiwan has been caught in the middle of the US/China trade spat, but EWT's performance indicates Taiwan is flexing its independence rather than siding with China as China would prefer. While Chinese President Xi Jinping supports the notion that China and Taiwan must stand together unified, the U.S., on the other hand, supports the country’s efforts to stay independent.
- Motley Fool
Taiwan Semi CEO: These 2 Technologies Are Powering the Next Semi Upcycle
The semiconductor recession might be over, thanks to these two hot technologies.
- Investor's Business Daily
IBD Stock Of The Day Taps Into Chip Stock Rally As AMD, Micron, Intel Advance
IBD Stock Of The Day: VanEck Vectors Semiconductor ETF is in buy range, offering a way to play the chip stocks rally while limiting company-specific risk on names like Intel, AMD and Micron.
- Market Realist
TSMC’s and Samsung’s Rivalry Fuels Rumors
Taiwan Semiconductor Manufacturing (TSM), the world’s largest contract chipmaker, competes with Samsung Foundry (SSNLF) and Global Foundries.
- Market Realist
TSMC’s Earnings Give Semiconductor Investors Hope
On July 18, TSMC reported its second-quarter earnings, which beat estimates and hinted that the worst could be over. TSMC's earnings guidance shows a similar picture. Before we discuss TSMC more, let's first understand what the company does.
