|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||83,000.00 - 85,300.00|
|52-week range||42,300.00 - 96,800.00|
|Beta (5Y monthly)||0.91|
|PE ratio (TTM)||N/A|
|Earnings date||27 Apr 2021 - 03 May 2021|
|Forward dividend & yield||7,728.00 (9.37%)|
|Ex-dividend date||29 Dec 2020|
|1y target est||54,903.00|
(Bloomberg) -- In just two decades, China sent people into space, built its own aircraft carrier and developed a stealth fighter jet. Now the world’s youngest superpower is setting out to prove its capabilities once more -- this time in semiconductors.At stake is nothing less than the future of the world’s No. 2 economy. Beijing’s blueprint for chip supremacy is enshrined in a five-year economic vision to be unveiled during a summit of top leaders in the capital this week. It’s a multi-layered strategy both pragmatic and ambitious in scope, embracing aspirations to replace pivotal U.S. suppliers and fend off Washington, while molding homegrown champions in emergent technologies.China wants to build a coterie of technology giants that can stand shoulder-to-shoulder with Intel Corp. and Taiwan Semiconductor Manufacturing Co., conferring the same priority on that effort as it accorded to building atomic capability. While specifics of that endeavor won’t emerge for months, comments by government officials, Party mouthpieces like the People’s Daily and state think-tanks provide important clues about the envisioned road map.Read more: Xi Mobilizes China for Tech Revolution to Cut Dependence on WestThe approach entails making do over the next five years or so with aging semiconductors that are adequate for electric cars and even military applications, but can’t run advanced smartphones and similar devices. That buys China time to focus on fields like so-called third-generation chipmaking in which no country yet dominates and -- Beijing hopes -- create an array of indigenous giants in areas including machinery, software and new materials. The ultimate goal is to groom local alternatives to global linchpins like Cadence Inc. and Synopsys Inc. in design software and Europe’s ASML Holding NV in chipmaking gear.“Semiconductors are a crucial sector in the information era that will lead the future of economic development,” Science & Technology Minister Wang Zhigang said at a press conference last week. “At the same time, China will strive to achieve self reliance and strengthen our own capabilities.”Read more: China Said to Plan Broad Chip Sector Support to Fight TrumpChina’s efforts gained urgency because the Biden administration is escalating a battle against what it called “techno-autocracies.” That could extend or even expand blacklistings that banned key transactions with corporations from Huawei Technologies Co. to ByteDance Ltd. and Tencent Holdings Ltd. To a country that imports $300 billion of chips annually, a worsening global shortage drives home the risk of relying on potentially hostile suppliers for the building blocks of everything from artificial intelligence to sixth-generation networking and autonomous vehicles.It will take years for local companies to match foreign counterparts in manufacturing and design expertise, during which there’s no ready answer to the dominance of Japanese and American names in chipmaking equipment. Chinese companies will still only supply 35% of its domestic demand by the end of this decade, IDC analyst Mario Morales estimates.They’ll also have to contend with Washington. The U.S. signaled it intends to go ahead with a Trump administration-proposed rule to secure the technology supply chain next month, a move that gives the Department of Commerce broad authority to prohibit transactions involving “foreign adversaries” like China.“The United States and its allies should utilize targeted export controls on high-end semiconductor manufacturing equipment ... to protect existing technical advantages and slow the advancement of China’s semiconductor industry,” the National Security Commission on Artificial Intelligence, headed up by former Google chairman Eric Schmidt, recommended to Biden and Congress this week.Huawei, the country’s largest technology company by revenue, underscores the leverage Washington wields. Once the world’s biggest smartphone maker, Huawei was forced to sell its Honor division and run at close to minimum production capacity after it lost access to chips from the likes of TSMC under American regulations.“It just stimulates the Chinese community to accelerate their internal developments and eventually they may come out even stronger,” said Luc Van den hove, president of the Imec research center in Leuven, Belgium, which focuses on innovation in semiconductor technology. “And I think that’s certainly a risk of trying to keep the two worlds further apart.”Read more: Biden Putting Tech, Not Troops, at Center of U.S.-China StrategyBeijing had set aside at the start of its last five-year plan around 1 trillion yuan ($155 billion) for potential investment in semiconductors over five to 10 years, according to McKinsey. It will now continue to bankroll research and investment in coming years, Wang said last week. That should galvanize the much larger influx of private capital needed to produce genuine breakthroughs.It’s an approach that’s worked before for the internet, where a mix of government and private capital helped build the likes of Alibaba Group Holding Ltd. and ride-hailing giant Didi Chuxing Inc. In February, the state-backed Global Times reported smartphone makers Xiaomi Corp. and Oppo acquired stakes in Jiangsu Changjing Electronics Technology Co., exemplifying the sort of private-sector involvement Beijing’s counting on.When it comes to the chips, “we will see more support relative to private firms, because they play a bigger role in those sectors,” said Wendy Leutert, GLP-Ming Z. Mei Chair of Chinese Economics and Trade at Indiana University.Read more: The U.S.-China Conflict Over Chips Is About to Get UglierIn the meantime, up-and-comers such as Semiconductor Manufacturing International Corp. and Tsinghua Unigroup can help tide the country over a deficit of mobile processors, memory and telecom modules should Washington close off supply routes. They will mainly operate mature processes of 14 nanometers and older, sufficient for all but the most exacting applications such as smartphones, high-performance computing and graphics processors. Meanwhile, global leader TSMC is ramping up for mass production of 3 nm chips in 2022, about five or six generations ahead.At the same time, they’ll act as focal points for the country’s most capable brains to work on stop-gap measures such as advanced packaging that can improve chip computing power in the absence of more sophisticated U.S. technology. The hope is that such fine-tuning buys time for the homegrown development of advanced technologies, such as in 7-nanometer chips and silicon design software.Some of the key local players in that space include Shanghai Micro Electronics Equipment Co. and Naura Technology Group Co., who are working on equipment that can someday replace ASML’s extreme ultra-violet lithography or EUV machines -- a prerequisite for any advanced chipmaking.Local startups like Empyrean are trying to replicate the similarly indispensable software tools licensed by Synopsys and Cadence, employed by most of the world’s chip designers from Intel on down. Even in the commoditized realm of memory, a subsidiary of state-backed Tsinghua Unigroup is spending billions on mass production to challenge Samsung Electronics Co. and Micron Technology Inc.What Bloomberg Intelligence SaysTSMC may lose market share in China in the next three years to local contract chipmakers such as Semiconductor Manufacturing International. These Chinese peers are accelerating advance-node technology development and will likely gain orders from local chip designers such as Will Semiconductor and Unisoc, which are trying to avoid dependence on U.S. technology due to bilateral trade tensions and the risk of sanctions.- Charles Shum and Masahiro Wakasugi, analystsClick here for the research.Read more: China Still Buying $300 Billion of Chips From U.S., ElsewherePresident Xi Jinping has pledged an estimated $1.4 trillion through 2025 for technologies ranging from wireless networks to AI. A big chunk of that is geared toward semiconductors.Chinese firms such as Tsinghua will be responsible for building half the world’s 30-odd new fabrication plants or fabs in the next two years alone. It’s already spending 2.4 times more than the U.S. on semiconductor equipment, much of it made by American companies, Morales wrote in a report.The World Is Short of Computer Chips. Here’s Why: QuickTakeThe bet is that its corporations can compete if they accelerate research into burgeoning, adjacent fields like AI and quantum computing now. That’s where third-generation chips come in. Those are mainly made of materials such as silicon carbide and gallium nitride, can operate at high frequency and in higher power and temperature environments, with broad applications in fifth-generation radio frequency chips, military-grade radar and electric vehicles.The country may secure first-mover advantage, even if traditional silicon-based semiconductors will continue to account for the vast majority of global use for the foreseeable future, Citigroup analysts have said. U.S.-based Cree Inc. and Japan’s Sumitomo Electric Industries Ltd. are just beginning to grow this business, while Chinese rivals such as Sanan Optoelectronics Co. and state-owned China Electronics Technology Group Corp. have made inroads.The country’s other chipmakers, which include SMIC, Will Semiconductor Ltd. and National Silicon Industry Group Co., benefit more broadly from the state support.“The investment commitment that China is making ensures that the Chinese semiconductor ecosystem will continue to play an important role in the progress of our industry and the overall IT market,” said IDC’s Morales.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Chipmakers like Samsung Electronics Co Ltd will need a couple of weeks to resume production in Texas after shutdowns caused by severe weather, and customers could face knock-on effects in several months' time, a representative of a trade body said. Samsung, NXP Semiconductors NV and Infineon Technologies AG were ordered to shut factories in Texas last month after a winter storm killed at least 21 people and left millions of Texans without power. The shutdown threatens chip supplies as the industry is scrambling to meet demand, which is rising especially from the auto sector, but also for laptops and other products as economies recover from the impact of the pandemic.
(Bloomberg) -- The U.S. Supreme Court will consider whether to declare unconstitutional a system that technology companies, including Apple Inc. and Google Inc., have used to invalidate hundreds of patents and head off litigation.In an argument at the intersection of intellectual property and the separation of powers, the justices on Monday will consider a challenge to a congressionally-created board that critics have dubbed a “death squad” because of its tendency to toss out patents.The Patent Trial and Appeal Board has invalidated more than 2,000 patents since it began work in 2012. Apple says it alone has used the board to successfully attack almost 200 patents, many held by entities interested only in filing lawsuits and extracting royalties. Congress set up the board, known as PTAB, in 2011 as a faster and cheaper alternative to litigation.But some smaller inventors see a chance to undercut the board, saying it’s become an anticompetitive tool for large companies.The case “has the potential to shut down the PTAB, if only for a moment until Congress can do something to get it back on course,” said Jim Carmichael, a former PTAB judge and now managing director of Carmichael IP. “For many inventors and patent owners, that’s a very exciting prospect.”At issue is whether more than 250 PTAB judges are serving in violation of the Constitution. The federal appeals court that handles most patent disputes said the judges have important enough powers that they need to be appointed directly by the president.Should the Supreme Court agree, it could go as far as barring the board from continuing to review and invalidate patents. The justices could also issue a more limited ruling that would strip the judges of their job protections but leave the board’s powers intact. Either way, a decision against the board could mean that hundreds of cases would have to be reconsidered.Constitutional FightThe U.S. Court of Appeals for the Federal Circuit said the judges are “principal officers,” a constitutional category that requires presidential appointment and Senate confirmation. The court said it reached that conclusion in part because patent judges’ decisions, typically issued by three-person panels, aren’t subject to review by a presidentially appointed official at the agency.The Justice Department is urging the Supreme Court to leave the system in place, saying patent judges are “inferior officers,” who the Constitution says don’t have be presidential appointees. In a brief filed before leaving office, President Donald Trump’s administration said the Patent & Trademark Office director and the Commerce secretary together have broad control over the work of the judges. Among other tools, the patent office director can decide which judges sit on a review panel.The Supreme Court said in a 1997 case involving Coast Guard judges that inferior officers are people “whose work is directed and supervised at some level by others who were appointed by presidential nomination with the advice and consent of the Senate.”The case before the justices involves an Arthrex Inc. surgical device patent invalidated by PTAB after a challenge by Smith & Nephew Plc. The court has deferred action in dozens of other cases likely to be affected by its ruling.Technology CompaniesApple, the single biggest user of the review boards, filed a brief backing Arthrex. The iPhone maker said it relies “on Congress’s promise of a fair and efficient forum to challenge what often prove to be woefully weak patents that should not have issued in the first instance.”Other companies backing PTAB include Intel Corp. and an alliance whose members include Alphabet Inc.’s Google, Cisco Systems Inc., Microsoft Corp., Oracle Corp. and Samsung Electronics Co.A group describing itself as “39 aggrieved inventors” said intellectual property rights are “under attack by large corporations that are motivated to devalue patents and quell competition.”“There is no place for overlooking constitutional violations and contrived, convoluted administrative shortcuts when the future of small businesses and their owners’ livelihoods hang in the balance,” the group said.The drug industry is largely staying out of the fight, though a trade group for the generic-drug industry urged the court to preserve the PTAB.So many patents have been invalidated that it’s been called a “death squad,” a term coined by Randall Rader, the former chief judge of the Federal Circuit, which oversees all patent disputes in the country. The patent office has since altered its rules, giving patent owners a better shot at surviving the challenges.PTAB already survived one challenge at the Supreme Court. In 2018, justices found the panel wasn’t unconstitutionally wielding powers that belong to the courts.The court is scheduled to rule by late June. The lead case is U.S. v. Arthrex, 19-1434.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.