Nvidia CEO Jensen Huang rejects CEO offer from TSMC. $NVDA (+0,32%)
$2330
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TSMC co-founder Morris Chang has published his memoirs. In addition to warm anecdotes about Nvidia, there are less friendly ones about Intel.

Morris Chang is often referred to as Taiwan's semiconductor godfather. The co-founder of TSMC, the world's most important contract manufacturer for semiconductors, is undisputedly one of the most important personalities in the industry. The former TSMC CEO recently published the second part of his memoirs about his time in the semiconductor industry. Initial reviews of the memoirs, which have so far only been published in Chinese, promise interesting insights into the industry.

Chang reveals his admiration for Nvidia and its CEO and co-founder Jensen Huang. The company, which became big with graphics cards and gigantic with AI, is one of TSMC's most important customers. Chang even wanted to make Huang his successor as TSMC CEO; he was the third candidate alongside C.C. Wei, the current CEO, and Mark Liu, who were both members of the company management at the time. According to Chang, Huang declined with the simple comment that he already had a job - even though TSMC offered him a significantly better income. However, shares in Nvidia would have made his move more difficult.

While Chang thinks highly of Nvidia and Huang in particular, the situation is different for the currently struggling competitor Intel - although Chang and Intel founders Gordon Moore and Robert Noyce have close contacts. Intel was also TSMC's first important customer, whose high standards had a decisive influence on the culture of the young contract manufacturer.

Gelsinger was not a good choice

However, Chang is more critical of Intel's recent history. For months, the company blocked Apple's switch from Samsung to TSMC as the manufacturer of the systems-on-chip (SoCs) for the iPhones.

In addition to TSMC, Apple negotiated with Intel, which ultimately refused to manufacture the SoCs because they were not profitable enough. Tim Cook, the current CEO, recognized this early on and reassured Chang at a meeting that Intel was "not good at the foundry business", i.e. contract manufacturing. Little has changed under the recently dismissed ex-CEO Pat Gelsinger.

At the same time, Chang denies Gelsinger's qualifications as Intel CEO - his selection was more like a rhetorical competition than a serious search for a suitable CEO. Chang also seems to resent the fact that Gelsinger wanted to establish Intel as a competitor to TSMC - in his opinion, Intel should concentrate on AI rather than its foundry business. However, analysts have a different opinion.

Chang also has an interesting anecdote about ASML, today the most important manufacturer of exposure machines for the semiconductor industry: TSMC is not insignificantly responsible for the company's success. Through the joint partnership with Philips, the young company was backed early on, even though its machines were more expensive than those of its Japanese competitors at the time.

https://www.vietnam.vn/de/jensen-huang-tu-choi-lam-ceo-xuong-duc-lon-nhat-the-gioi/

https://www.golem.de/news/habe-schon-einen-job-nvidia-ceo-jensen-huang-lehnte-ceo-angebot-von-tsmc-ab-2412-191569.html

$INTC (+0,12%) There is no end to Intel's misery, because shortly after CEO Pat Gelsinger left the company, reports point to an enormously high defect rate in the Intel 18A process, in which Panther Lake will actually be manufactured next year.

Intel wanted to invest a total of more than 100 billion US dollars in advanced chip factories in order to seriously compete with TSMC $2330 serious competition with TSMC and to produce chips for giants such as $NVDA (+0,32%) Apple $AAPL (+0,28%) and Qualcomm $QCOM (+0,3%) in the future. These plans have already come to a standstill due to the company's financial difficulties, as the group has already put its plans for a chip factory in Magdeburg on hold. Mass production using the Intel 18A process (1.8 nm) was nevertheless due to start at the beginning of 2025, and the first processors manufactured using this process are said to have been ready for production as early as August.

Finding customers could prove difficult, however, as Reuters reports that a test run with Broadcom $AVGO (-0,12%) failed. Broadcom engineers are said to have examined an initial wafer manufactured using the Intel 18A process and concluded that the process was not yet ready for mass production. This is mainly due to the enormously high defect rate - according to information from Chosun the production yield is currently less than 10 percent, which means that more than 9 out of 10 chips produced have defects. This not only reduces production capacity by the same factor, a high defect rate also has a huge impact on costs.

Officially, Intel maintains that Intel 18A is ready for production and achieves a "good" yield; mass production is scheduled to start next year as planned. As Intel currently has most of its own products, such as Lunar Lake, manufactured by TSMC, it is unclear whether the company will be able to find enough customers to fill all its factories. Not least because it takes a lot of capital to port a chip from production at TSMC to another process at Intel and, according to Reuters, it takes around three months before the first wafer can roll off the assembly line - too long to risk coming to the conclusion, like Broadcom, that the process is not (yet) suitable for its own purposes.

Sources Reuters, Notebookcheck

The ASML share fell 20% after after poor quarterly figures and a lowered outlook. Major customers such as Samsung and Intel are buying fewer machines because they are postponing investments. Buy, hold or sell ASML? What do you think?

In the Podcast episode 61 "Buy High. Sell Low" we talked about ASML in detail. Link in the profile description.

$ASML (+0,68%)
$INTC (+0,12%)
$005930
$AMD (-0,23%)
$NVDA (+0,32%)
$2330
$AMAT (+0,37%)
$MU (+0,19%)
$KLAC (+0,42%)
$LRCX (+0,22%)

Week in review 12.10.

All-time highs for S&P 500, Dow Jones, Air Products & Chemicals, American Express, Arista Networks, Bank of New York Mellon, BlackRock, Caterpillar, CAVA, Fiserv, GE Vernova, Goldman Sachs, Mastercard, Morgan Stanley, Motorola Solutions, Piper Sandler, Royal Caribbean, Uber, Unum

52-week highs for Carnival, Commerzbank, GE Aerospace, Hilton Worldwide, MicroStrategy, Norwegian Cruise, Palantir, Ralph Lauren, Robinhood Markets, Sea Ltd. , Shake Shack, Tangier, Teledyne

Tesla Cybercab / Robotaxi planned from 2026 for under 30,000$. In addition, an autonomous bus with 20 seats was presented, share falls -8.1%, market is disappointed, -19% 1-year performance

Nvidia partner Hon Hai increases capacity to meet "crazy" AI demand, Nvidia shares +8.3% this week, +176% 1-year performance

AMD unveils MI325X AI accelerator to compete with Nvidia's H200, customers include Google, Microsoft, OpenAI, Dell, Oracle, Meta, Hewlett Packard Enterprise, Supermicro, Lenovo and Databricks, AMD launches EPYC 5th Gen Datacenter CPU to compete with Intel's Xeon, AMD currently has 34% market share in Datacenter CPUs, MI350 coming in 2025 to compete with Nvidia's Blackwell, AMD stock drops -4%, apparently sell the news event, +45% 1-year performance

92% of desktop processor sales at major German online retailer Mindfactory were from AMD last week, Intel only at 8% share and -36% 1-year performance

TSMC with good quarterly figures, share price rises slightly, +97% 1-year performance

JPMorgan with good quarterly figures, share +5.1%, +48% 1-year performance

Wells Fargo with good quarterly figures, share +6.5%, +49% 1-year performance

PepsiCo and Samsung with poor quarterly figures, shares fall slightly

Amazon Pharmacy announces same-day delivery of prescription drugs in 20 more US states and expands its service to almost half of the states in 2025, +43% % 1-year performance

Jefferies says Apple's hopes for an AI phone are overdone and high expectations are premature, Hold rating, +26% 1-year performance

The situation is similar at Microsoft after Oppenheimer downgraded its rating from "Outperform" to "Perform", it was the second such downgrade by analysts in recent weeks, AI sales are overestimated and shares have underperformed since July due to "AI fatigue", plus losses at OpenAI, +26% 1-year performance

Two Google scientists from the subsidiary DeepMind receive the Nobel Prize in Chemistry, they developed the AI model "AlphaFold2", which can be used to predict the structures of all 200 million known proteins, the AI is used in 190 countries, for example in the clarification of antibiotic resistance or the use of enzymes to break down plastics, Alphabet shareholders like this, +12% 1-year performance

Inperial Brands increases dividend, now pays out quarterly and buys back shares, share price rises 5%, +36% 1-year performance

FTX - customers will soon get their balances paid out after the crypto exchange went bankrupt in 2022 and the management was imprisoned

Shortseller Hindenburg Research with allegations of fraud and safety concerns for children at gaming service Roblox, share price falls -6%, even -70% since November 2021

After two very positive weeks, China stocks fall like a flash in the pan as the market expected more stimulus from the Chinese dictator. Dictator, Hang Seng with worst day since the 2008 financial crisis, this week

China strengthens real estate sector and signals more spending ahead, Finance Minister announces measures to support real estate sector today and government would now have more room to borrow and increase deficit, China also announces issuance of special government bonds today to bolster capitalization of its largest state-owned banks, Printer is coming

Fitch downgrades France's credit rating to negative due to higher deficits, government debt expected to rise to 118.5% of GDP by 2028

FTSE Russell: Greek equities on track for upgrade to developed markets, FTSE Russell to provide update as part of March 2025 review, Greek equity index up 53% since start of 2023

Porsche sells 7% fewer cars due to China slump by -29%, -5% North America but +7% Germany & Europe, -21% % 1-year performance

Deutsche Telekom increases dividend and launches share buyback program for € 2 bn, highest share price in 23 years, +33% 1-year performance

Commerzbank reaches highest share price since the euro crisis in 2011, +61% 1-year performance

Bayer with new lawsuit in the USA over PCBs, share price -7%, -41% 1-year performance

German industrial order intake fell unexpectedly sharply by 5.8% in August compared to the previous month

E.on CEO expects energy prices to rise in the long term thanks to higher taxes & levies and the world's stupidest energy policy

The Ampel expects the economy to shrink for the second year in a row, revising its GDP forecast for 2024 from +0.3% to -0.2%, only the second consecutive year of shrinking GDP since the fall of communism in 1990

After the pension insurance, the German long-term care insurance is also bankrupt, as recipients of citizens' benefits are not paying in and society is ageing, Lauterbach therefore wants to increase the monthly contribution for long-term care for all workers, so soon less net from gross again

" If you want to read a review like this every week, leave a like and subscribe.

$NVDA (+0,32%)
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$TSLA (+0,09%)
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$941
$9988 (-0,24%)
$700 (+1,27%)
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$DTE (+0,72%)
$BAYN (+0,72%)
$EOAN (-1,09%)
$PLTR (-2,53%)
$RBLX
$BLK

Semiconductor shares since their 52-week highs

-61% Intel $INTC (+0,12%)

-54% Aixtron $AIXA (-0,25%)

-45% STMicroelectronics $STMPA (-0,01%)

-44% Micron Technology $MU (+0,19%)

-37% Globalfoundries $GFS (-0,91%)

-36% BE Semiconductor $OXVE

-33% Lam Research $LRCX

-29% AMD $AMD (-0,23%)

-29% Qualcomm $QCOM (+0,3%)

-28% ON Semiconductor $ON (+0,01%)

-27% ASML $ASML (+0,68%)

-26% Applied Materials $AMAT (+0,37%)

-26% Elmos Semiconductor $ELG (+1%)

-24% Microchip Techn. $MCHP (-0,34%)

-23% ARM $ARM (-0,36%)

-23% Synopsys $SNPS (-0,4%)

-23% Infineon $IFX (-1,17%)

-22% NXP Semiconductors $NXPI (-0,25%)

-20% Cadence Design $CDNS (-0,06%)

-17% Nvidia $NVDA (+0,32%)

-17% VanEck Semicon. ETF $IE00BMC38736 (+0,34%)

-17% Nordic Semi $NRS

-17% KLA Corporation $KLAC (+0,42%)

-13% Marvell Technology $MRVL (+0,01%)

-12% TSMC $2330

-11% Broadcom $AVGO (-0,12%)

-7% Texas Instruments $TXN (-0,82%)

-6% Monolithic Power Syst. $MPWR (+0,3%)

>> Which stocks are you invested in and how are they performing? Which of these stocks do you have on your watchlist? #semiconductor
#halbleiter

To the people who are invested in the semiconductor/processor sector, where or how are you invested?

What are your favorite stocks in this area?

$IFX (-1,17%)
$QCOM (+0,3%)
$AVGO (-0,12%)
$2330

19.07.2024 +++ Netflix continues to grow very strongly +++ TSMC with profit-taking +++ Airbus with "Lead" savings program +++ Sartorius with official profit warning +++

Netflix
$NFLX (-0,35%) continues to grow unabated and wants to steal more viewers from traditional television. In the past quarter, the video streaming market leader gained a good eight million new customer households. There was also significant growth in sales and profits. Netflix also continues to reject bundled offers because it sees itself as a strong brand!

The shares of TSMC
$2330 fell by 2.0% despite strong results for the second quarter. High demand has given the chip manufacturer a jump in profits. Turnover rose by 40 percent to 674 billion Taiwan dollars. However, the share had recently benefited greatly from the high demand for semiconductors for AI applications and had risen to an all-time high.

The aircraft manufacturer Airbus
$AIR (-0,44%) is clearly preparing for strong headwinds in its aircraft division. After recently informing investors that things are not going as well as expected this year, employees are now being prepared for a cost-cutting program. Although the plan is not backed up with figures, the program, called "Lead", is apparently to be implemented stringently.

The profit warning that everyone knew about is finally here. Sartorius
$SRT (+1,07%) lowered its forecast for the year as a whole yesterday evening due to weak demand. In the first half of the year, sales amounted to EUR 1.68 billion, down 2.2 % on the previous year, although the second quarter in isolation already contributed slight growth of 3.6 %. Operating EBITDA fell by 8.8 % to EUR 471 million.

Friday: Stock market dates, economic data, quarterly figures

Small expiry day

ex-dividend of individual stocks

Suedzucker EUR 0.90

Procter & Gamble 1.01 USD

Colgate-Palmolive 0.50 US

Quarterly figures / company dates USA / Asia

13:00 American Express quarterly figures

13:00 Travelers Cos quarterly figures

13:00 Schlumberger quarterly figures

Quarterly figures / Company dates Europe

07:00 Sartorius Results 1H

08:00 Yara quarterly figures

08:00 Burberry Q1 sales

09:00 Sartorius PK

Economic data

• 08:00 DE: Producer prices June

FORECAST: +0.1% yoy/-1.6% yoy previously: 0.0% yoy/-2.2% yoy

• 08:00 UK: Retail Sales June

OUTLOOK: -0.5% yoy/+0.2% yoy previous: +2.9% yoy/+1.3% yoy

The Biden administration is considering tougher trade rulesin particular the Foreign Direct Product Rulein order to China's access to advanced semiconductor technology further restrict China's access to advanced semiconductor technology. The FDPR would allow the USA to restrict the export of foreign products that contain even a small amount of American technology.

This potential measure has led to a significant drop in shares from several chip manufacturers.

• NVIDIA ($NVDA (+0,32%)) fell in pre-market trading by 4%
• Supermicro ($SMCI) fell by 5%
• AMD ($AMD (-0,23%)) fell by 5,6%
• Qualcomm ($QCOM (+0,3%)) fell by 6,1%

Other companies affected are:

• ASML ($ASML (+0,68%)) fell by over 6%
• Tokyo Electron ($8035 (-1,38%)) -7,4%
• TSMC ($2330) fell by 2,3%

The USA reportedly has allies such as the Netherlands and Japan have called for the export of advanced chip manufacturing equipment to China. Failure to comply with this request could lead to the activation of the FDPR rules lead to the activation of the FDPR rules. The potential trade restrictions and the geopolitical tensions surrounding Taiwan have and will lead to considerable fluctuations in the chip industry.