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STAMFORD, Conn., January 6, 2015

Gartner Says Worldwide Semiconductor Revenue Grew 7.9 Percent in 2014

Booming DRAM Market Propelled Strong Growth for Memory Makers

Worldwide semiconductor revenue totaled $339.8 billion in 2014, a 7.9 percent increase from 2013 revenue of $315 billion, according to preliminary results by Gartner, Inc. The top 25 semiconductor vendors' combined revenue increased 11.7 percent, which was more than the overall industry's growth. The top 25 vendors accounted for 72.1 percent of total market revenue, up from 69.7 percent in 2013.

"As a group, DRAM vendors outperformed the rest of the semiconductor industry. This follows the trend seen in 2013 due to a booming DRAM market that saw revenue increase 31.7 percent during 2014 as the undersupply and stable pricing continued," said Andrew Norwood, research vice president at Gartner. "In contrast to 2013, which saw revenue decline in key device categories, including ASIC, discretes and microcomponents, all device categories saw positive growth in 2014, but none could match the growth of the memory market, which grew 16.9 percent in 2014. Excluding memory revenue, growth for the remainder of the market reached 5.4 percent, but this is much better than 2013 growth of 0.8 percent for nonmemory revenue."

Intel saw a return to growth in 2014, following two years of revenue decline, with 4.6 percent growth (see Table 1). The company reorganized itself into five new business units in 2014, with the Datacenter Group continuing to be the most the stable unit for the company. Intel is on pace to reach its goal of 40 million tablet processors in 2014, although these processors are being shipped at significantly discounted prices with incentives. On the PC front, Intel continued to gain market share from AMD, and Gartner expects volume increases for both Intel's notebook and desktop platforms compared with 2013. Intel has maintained the No. 1 market share position for the 23rd consecutive year, capturing 15.0 percent of the 2014 semiconductor market, down slightly from its peak of 16.5 percent in 2011....................................................................

http://www.gartner.com/newsroom/id/2955617
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Egham, UK, January 5, 2015

Gartner Says Tablet Sales Continue to Be Slow in 2015

Tablet Sales to Reach 8 Percent Growth in 2015 While PC Market to Grow 1 Percent

After a troubled year in 2014, the global tablet market is not returning to the levels of growth seen in the last four years as demand for tablets will continue to be slow in 2015. Gartner, Inc. estimates that worldwide tablet sales will reach 233 million units in 2015, an 8 percent increase from 2014.

"The collapse of the tablet market in 2014 was alarming," said Ranjit Atwal, research director at Gartner. "In the last two years global sales of tablets were growing in double-digits. The steep drop can be explained by several factors. One is that the lifetime of tablets is being extended - they are shared out amongst family members and software upgrades, especially for iOS devices, keep the tablets current. Another factor includes the lack of innovation in hardware which refrains consumers from upgrading........................................

http://www.gartner.com/newsroom/id/2954317

(vested)

Interesting coverage by SEMI on the secondary fab equipment market - have always been wondering on the size of this market....................

(vested)
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New Secondary Fab Equipment Market Report Available from SEMI

SAN JOSE, Calif. — January 8, 2015 — With new cost-sensitive semiconductor devices driving capacity demand, 200mm wafer size and currently existing (legacy) fabs are seeing a renaissance, SEMI® completed a thorough study of the secondary fab equipment market to identify the market size and to capture key trends and issues impacting this industry segment. SEMI interviewed and surveyed integrated device makers (IDMs) and foundries. Companies were asked to provide information pertaining to the acquisition of previously installed tools for 150mm, 200mm, and 300mm manufacturing. The SEMI Secondary Fab Equipment Report is new, unique coverage for the industry. The report contains 26 pages and 29 figures and charts. The target audience is expected to be companies serving the secondary fab equipment supply chain, IDMs and foundries, and other industry analysts who need data to benchmark and analyze this market.

The semiconductor industry is maturing where annual double-digit fab capacity additions are less frequent, and the industry is spending in the range of $30 billion per year in new fab equipment. Investment in “legacy” fabs is important in manufacturing semiconductor products, including the emerging Internet of Things (IoT) class of devices and sensors, and remains a sizeable portion of the industries manufacturing base:
•150mm and 200mm fab capacity represent approximately 40 percent of the total installed fab capacity
•200mm fab capacity is on the rise, led by foundries that are increasing 200mm capacity by about 7 percent through to 2016 compared to 2012 levels
•New applications related to mobility, sensing, and IoT are expected to provide opportunities for manufacturers with 200mm fabs

Out of the total US$ 27 billion spent in 2013 on fab equipment and US$ 31 billion spent on fab equipment in 2014, secondary fab equipment represents approximately 5 percent of the total, or US$ 1.5 billion, annually. For 2014, 200mm fab investments by leading foundries and IDMs resulted in a 45 percent increase in spending for secondary 200mm equipment. Foundries are estimated to represent half of the 200mm equipment spending in 2014.

In developing the report, SEMI interviewed and surveyed IDMs and foundries. Direct spending input was obtained from 28 companies, and estimates were made for another 12 companies based on known capex plans, quarterly financial statements and transcripts, and capacity investment trends tracked by the SEMI World Fab Forecast database. The focus of the new report is on secondary fab equipment spending; secondary test equipment and assembly and packaging equipment were not included in this study. To order the report, visit www.semi.org/en/node/53676. For information on all SEMI Market research reports, visit www.semi.org/en/MarketInfo. For information on SEMI, visit www.semi.org

http://www.semi.org/en/node/53881?id=highlights
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China Charts New Course in Targeting Worldwide IC Industry—Fabless!
Chinese companies held 9 of the top 50 spots in the 2014 fabless IC company ranking, up from 1 in 2009

JANUARY 8, 2015 By IC Insights

http://www.icinsights.com/data/articles/...ts/744.pdf

DRAM Capacity Rises from Slump; Sector Faces New Challenges

SAN JOSE, Calif. — January 12, 2015 — SEMI today announced details from the SEMI World Fab Forecast Report illuminating the state of the semiconductor manufacturing industry, coincident with convening SEMI’s Industry Strategy Symposium (ISS) in Half Moon Bay, Calif. Among the insights across the various segments, the changes in the DRAM (Dynamic Random-Access Memory) segment are an example of the significant shifts in capacity and technology that are driving fab capacity and investment.

Based on SEMI World Fab Forecast data, SEMI forecasts a favorable outlook for DRAM as bit demand rises, improving selling prices in 2013 and 2014. The DRAM sector experienced a sharp decline during the 2008/2009 financial crisis and subsequently contracted, both in the number of suppliers and in installed fab production capacity. However, installed capacity for DRAM is forecast to turn to positive growth by the end of 2016; yet the path to growth is clouded by daunting technology issues.

In the five years prior to the economic downturn, yearly growth rates for installed fab capacity trended in high double digits. In 2007, eleven major companies produced DRAM chips in approximately 40 facilities globally. Installed capacity increased 40 to 50 percent each year from 2003 to 2007. According to SEMI data, currently only six companies (20 facilities) produce significant capacities of DRAM. The industry has consolidated, with several front end fabs converted from DRAM to Logic, Flash or other purposes.

According to SEMI fab data, a capacity loss often occurs when a fab transitions to the next leading-edge technology. Increased complexity and more process steps results in fabs producing 10 to 20 percent fewer wafers per square foot of cleanroom; this trend affects virtually all industry segments at the 30/28nm node and below. The SEMI World Fab Forecast report tracks nine fabs following this pattern. From 2014 to 2016, DRAM fabs are expected to lose a total of about 25,000 wafers per month when transitioning to next leading-edge technology node.

To compensate for this, and to meet expected bit demand, the industry is beginning to add new capacity with new fabs and lines. By 2015, three or four new fabs or lines will be in operation. All will require time to ramp up; meaning that net capacity change likely will not shift from negative to positive growth until 2016, when about 3 percent growth is forecast. How this potentially could affect worldwide DRAM capacity is illustrated in this figure:...................

http://www.semi.org/en/node/54256?id=highlights

(vested)

Further Growth Seen for Semiconductor Equipment and Materials at SEMI ISS 2015

HALF MOON BAY, Calif. — January 13, 2015 — The SEMI Industry Strategy Symposium (ISS) opened yesterday with the theme “Riding the Wave of Silicon Magic.” The sold-out conference of the industry’s C-level executives highlighted favorable forecasts in the year’s first strategic outlook for the global microelectronics manufacturing industry. The underlying drivers for growth and the next wave emerging from the Internet of Things (IoT) were discussed from several perspectives.

Opening keynoter Scott McGregor, president and CEO of Broadcom, traced the history of the industry’s more than 50 years of exponential improvements in silicon speed, power and design since Moore's Law in 1965. McGregor sees the next wave of Silicon Magic as a $15 trillion opportunity that will provide ubiquitous, nonstop, seamless high-speed connectivity. Still, McGregor believes that three key issues challenge the industry’s growth. First, patent reform, as patents are the foundation of the innovation economy and the global patent system does not meet today’s industry realities. Second, interoperability and standards, as IoT is raising the stakes for data privacy and security. Finally, STEM education, as in the future, all businesses will be tech businesses.

In the Economic Trends session, presenters took on both macroeconomic and detailed industy-specific forecasts:
•Nariman Behravesh, senior economist at IHS, presented the macroeconomic view of 2015 and the global implications brought on by the sharp drop in oil prices. IHS predicted that the U.S. will grow in the 2.5-3.0 percent range in 2015 while other regions will be mixed: the European recovery will be slow, Japan’s economy will regain weak momentum, and China growth will continue to slow, but remain stronger than most.
•Mario Morales, VP at IDC, presented the 2015 semiconductor outlook. IDC saw the semiconductor market grow 7 percent in 2014 and projects 3.8 percent growth in 2015. Market growth will be led largely by automotive and industrial segments.
•Andrea Lati, principle analyst for VLSI Research, presented the 2015 semiconductor equipment outlook. VLSI saw semiconductor equipment sales coming in at 17 percent growth in 2014 and forecasts 8 percent growth in 2015. VLSI noted the top 7 chipmakers accounted for 71 percent of spending in 2014 (vs. 56 percent in 2010). VLSI sees the consolidation driving an industry that has smaller cyclic peaks and is settling into a moderated two-year cycle cadence with fewer players having less incentive to individually make a market share grab.”

Several presenters discussed the Internet of Things (IoT) and offered that the IoT provides an unprecedented growth opportunity — and understanding just what IoT is, at this stage, a challenge. The lively session featured Frank Jones, VP and GM at Intel, David Ashley, VP of Customer Value Chain Management at Cisco Systems, Shawn DuBravac, chief economist and director of research at the Consumer Electronics Association (CEA), and Martin Reynolds, managing VP and fellow at Gartner.

Among the insights in the IoT session, Jones stressed that with all the IoT hype, it’s critical to demonstrate business value. Working with partners, he cited emerging IoT examples such as: saving 43 percent in time with an integrated “Smart Parking Solution” and improvements to Intel’s own factories with fab personnel defining a process step predictive maintenance tool (sensors and analytics) that saved $9 million per year. Ashley made the point that with $19 trillion for the IoE at stake, the supply chain, including economic trends (labor wage inflation, government policy, shrinking life cycles) and ecosystem (supplier consolidation, visibility, consumer-driven technology) need to be addressed. DuBravac focused on how everyday objects are becoming smarter and more connected and said that the key to technology should be what is meaningful as opposed to what is possible.

Days 2 and 3 at ISS will delve deeper into the underpinnings of the industry. Technology and manufacturing insights will be discussed with presentations from: TSMC, Altera, XMC, Intel, Honeywell, Micron, imec, ASE, IBM, Lux Research, Illumina, Cypress, Boing, and McKinsey. A “Silicon Magic” panel will wrap up the conference with Intel, Lam Research, JSR, TSMC, and Qualcomm.

The SEMI Industry Strategy Symposium (ISS) examines global economic, technology, market, business and geo-political developments influencing the semiconductor processing industry along with their implications for your strategic business decisions. For more than 35 years, ISS has been the premier semiconductor conference for senior executives to acquire the latest trend data, technology highlights and industry perspective to support business decisions, customer strategies and the pursuit of greater profitability.

http://www.semi.org/en/node/54306?id=highlights

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STAMFORD, Conn., January 13, 2015 View All Press Releases

Gartner Says Worldwide Semiconductor Capital Spending to Increase 0.8 Percent in 2015

Conservative Investment Strategies Paving the Way to Slower Growth in 2015

Despite strong growth of 12.9 percent in 2014, worldwide semiconductor capital spending is projected to only grow 0.8 percent in 2015, to $65.7 billion, according to Gartner, Inc. Capital equipment spending will increase 5.6 percent in 2015, down from 11.3 percent in the third quarter 2014 forecast, as the largest spenders adopt conservative investment strategies (see Table 1).

“Equipment spending outperformed capital spending in 2014 and will continue to do so in 2015, a situation that will reverse in 2016. Total capital spending will grow 0.8 percent in 2015, compared with 8.8 percent in our previous forecast,” said Bob Johnson, research vice president at Gartner. “As we get better visibility into individual company spending plans for 2015, it is apparent that caution is a prevailing sentiment, with the exception of memory where manufacturers are adding capacity in response to favorable market conditions.”

In 2015, equipment spending will increase 5.6 percent, as manufacturers pull back on new fab construction and concentrate instead on ramping up new capacity. This equipment growth is down from Gartner’s previous forecast of 11.3 percent.........................

http://www.gartner.com/newsroom/id/2961017

(vested)

With the increasing demand of semiconductors, UMS is positioned favourably to tap the market.

Hmm. Are you implying that people are currently focusing on the bad more then the good?

With it's dividend records, it is pretty strange for this stock to remain at this price

(15-01-2015, 02:09 PM)ohgin Wrote: [ -> ]With it's dividend records, it is pretty strange for this stock to remain at this price

For those bother to read the old posts in this thread, will know the concern(s) behind the current pricing.

(vested, and thinking that the concern(s) are over-rated, at least in mid term)

(15-01-2015, 02:28 PM)CityFarmer Wrote: [ -> ]

(15-01-2015, 02:09 PM)ohgin Wrote: [ -> ]With it's dividend records, it is pretty strange for this stock to remain at this price

For those bother to read the old posts in this thread, will know the concern(s) behind the current pricing.

(vested, and thinking that the concern(s) are over-rated, at least in mid term)

Well i know the main concern is because Advance Material and also the CEO reduced their stake.

But then this should simmer down over time.

(15-01-2015, 03:19 PM)ohgin Wrote: [ -> ]

(15-01-2015, 02:28 PM)CityFarmer Wrote: [ -> ]

(15-01-2015, 02:09 PM)ohgin Wrote: [ -> ]With it's dividend records, it is pretty strange for this stock to remain at this price

For those bother to read the old posts in this thread, will know the concern(s) behind the current pricing.

(vested, and thinking that the concern(s) are over-rated, at least in mid term)

Well i know the main concern is because Advance Material and also the CEO reduced their stake.

But then this should simmer down over time.

Simmer down?

Andy has reduced his stake starting from early 2012, till the most recent one in mid 2014. There is no reason to believe he will or will not continue. I reckon it will never simmer down, right?

The key concern on AMC, isn't on the disposal of UMS share, but the concern of UMS-AMC partnership. The concern will remain, until AMC-Tokyo Electron deal settled and integration done, and will not simmer down now, right?

(vested, and might be biased)