Tag Archives: TSMC

CHIPS: SMIC Taps Beijing’s Chip Ambitions with New $10 Bln Plant

Bottom line: SMIC’s new plan for a $10 billion cutting-edge chip plant shows it could be well positioned to find a place on the global stage by tapping strong government support after an overhaul of its own operations.

SMIC announces $10 bln chip plant

I rarely write these days about SMIC (HKEx: 981; NYSE: SMI), since the company once billed as China’s best hope to challenge global chip giants like Intel (Nasdaq: INTC) and TSMC (Taipei: 2330) has been a major disappointment since its Hong Kong listing a decade ago. But the company’s newly announced plan for a $10 billion cutting-edge plant was enough to catch my attention, and shows SMIC could become a company to watch due to Beijing’s sudden determination to build  up a globally competitive chip sector at any cost. Read Full Post…

CHIPS: China Tries New US Chip Buy with Analogix

Bottom line: A Chinese buyer’s plan to purchase US chip maker Analogix for more than $500 million is unlikely to meet with political resistance, and could mark a new template for similar cross-border chip M&A by China.

Chinese group bids for US-based Analogix

After failing at several high-profile attempts to buy US microchip technology, China is trying once again with a newly announced plan to acquire venture-backed chipmaker Analogix Semiconductor for more than $500 million. Unlike previous failed efforts that targeted more mature companies, the acquisition target in this case is much younger, since Analogix was only founded in 2002.

This new deal looks strikingly similar to another one earlier this year that saw the Shanghai-based National Silicon Industry Group purchase a similarly young Finnish chipmaker called Okmetic in a deal that valued the company at nearly $200 million. (previous post) That deal and this latest one don’t appear to be related, though one can never be completely sure due to the vague descriptions of the buyers in both cases. Read Full Post…

CHIPS: Qualcomm Sues Meizu, MediaTek Presses Taipei

Bottom line: Qualcomm and Meizu are likely to reach a new licensing agreement after the former sued the latter, pressuring Meizu’s profits, while Taipei will reach a compromise with local chip makers that would allow mainland investment in the sector.

Qualcomm sues Meizu over chip license

Two high-tech chip stories are in the headlines today, reflecting the complex dynamics now taking place in the market between China and the rest of the world. In both cases, the common theme is that China wants to build up its own manufacturing base for high-tech chips that power everything from cars to smartphones and home appliances. It’s already the world’s biggest consumers of such chips, since it manufactures many of those devices. But it doesn’t design or produce most of the actual chips, which is an extremely high-tech business that also carries high profit margins. Read Full Post…

CHIPS: Amid Broad Chip Deal Resistance, Okmetic Sale Advances

Bottom line: Okmetic’s sale to a Chinese buyer was uncontested because of the company’s small size and youth, but the case could be closely watched to see how China might handle future takeovers of larger western chip makers.

Okmetic shareholders approve China takeover

China’s sudden appetite for overseas high-tech chip makers is attracting growing resistance from wary western governments, but one deal that seems to be avoiding such tensions is the purchase of Finnish company Okmetic (Helsinki: OKM1V). Just 2 months after announcing its plans to be acquired by China’s National Silicon Industry Group (NSIG), Okmetic has moved steadily forward with the plan and has just announced that holders of an overwhelming 93 percent of its shares have agreed to accept the offer. (company announcement) Read Full Post…

CHIPS: TSMC Offers New Tech Route to Taiwan for China

Bottom line: New remarks by TSMC Chairman Morris Chang could signal a revival of several stalled mainland investments in Taiwan’s microchip sector, with new focus on creating mechanisms to prevent IP theft.

TSMC remarks hint at revival of China-Taiwan chip deals

New reports are citing one of Taiwan’s most influential technology executives saying he welcomes investment from China, offering a tantalizing new path to the island for Chinese high-tech firms who so far have been rebuffed in such moves. The new signals are coming from the chairman of leading Taiwanese high-tech chip maker TSMC (Taipei: 2330), who is saying he could accept a Chinese investor as a strategic stakeholder as long as the company doesn’t require a place on his company’s board. Read Full Post…

China News Digest: June 8, 2016

The following press releases and news reports about China companies were carried on June 8. To view a full article or story, click on the link next to the headline.
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  • iKang (Nasdaq: KANG) Receives Competing “Going Private” Proposal from Yunfeng (GlobeNewswire)
  • Parcel Delivery Firm Uni-Top Gets 15 Bln Yuan in New Investment (Chinese article)
  • Alibaba (NYSE: BABA) Chief Jack Ma Says Hopes Ant Financial to Make IPO in HK (Chinese article)
  • TSMC (Taipei: 2330) Chairman Welcomes China Investment, But No Board Seats (Chinese article)
  • Haier’s GE (NYSE: GE) Home Appliance Buy Nears Close, Final Price at $5.58 Bln (Chinese article)

CHIPS: China Resources Joins Beijing’s Chip-Buying Campaign

Bottom line: China Resources’ unsolicited bid for Fairchild Semiconductor is certain to fail, but reflects Beijing’s desire to broaden its field of domestic companies making bids for global microchip companies.

China Resources enters chip-buying race

Beijing’s recent bid to build up its high-tech microchip sector is in the headlines again, with word that state-run conglomerate China Resources has made an 11th-hour bid for mid-sized US chip company Fairchild Semiconductor (Nasdaq FCS). This particular bid, which would value Fairchild at nearly $2.5 billion, was quite a surprise, since Fairchild had agreed just last month to be acquired by US rival ON Semiconductor (Nasdaq: ON).

There are 2 major elements to this chip story that has seen China become a sudden major bidder for global assets. The biggest picture is a story of consolidation in the global sector, which is long overdue and comes as maturing technology and has created an intensely competitive field of mid-sized players, many of those losing money. The second element is Beijing’s own recent decision to join the field of global buyers, as it tries to build up a homegrown chip giant to compete with big global players like Taiwan’s TSMC (Taipei: 2330) and South Korea’s Samsung (Seoul: 005930). Read Full Post…

CHIPS: China-Taiwan Chip Ties Grow with $3 Bln TSMC Plant

Bottom line: TSMC’s plan for a $3 billion Nanjing chip plant marks the latest in a nascent but growing string of China-Taiwan tie-ups in the chip space, which could gain momentum under Beijing’s recent aggressive program to develop the industry.

TSMC to build $3 bln chip plant in Nanjing

After years of disappointment for failing to fulfill its potential, China high-tech chip sector has suddenly come to life over the last year with a flurry of deals that hint Beijing is taking the lead to promote the sector. The latest of those is one of the biggest and most significant yet in terms of technology, with word that Taiwan’s TSMC (Taipei: 2330; NYSE: TSM), the world’s leading contract chip maker, will build a $3 billion state-of-the-art 12-inch wafer plant in the city of Nanjing.

The move is particularly significant because TSMC is the clear global leader in high-tech microchip production, with a client list that includes most of the world’s major companies like Qualcomm (Nasdaq: QCOM) and Apple (Nasdaq: AAPL). The deal also marks the latest in a nascent series of tie-ups between China and Taiwan in the chip-making space, a potent combination that could someday counter current powerhouses in South Korea and Japan. Read Full Post…

News Digest: December 8, 2015

The following press releases and media reports about Chinese companies were carried on December 8. To view a full article or story, click on the link next to the headline.
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  • Taiwan’s TSMC (Taipei: 2330) to Build $3 Bln Chip Plant in Nanjing (Chinese article)
  • Homeinns (Nasdaq: HMIN) Enters into Definitive Merger Agreement (PRNewswire)
  • Alibaba’s (NYSE: BABA) AliExpress to Collect Annual Service Fee (English article)
  • Unicom (HKEx: 763) Announces Launch of Wo 4G+, to Explore Network Sharing (HKEx Announcement)
  • Huayi Bros (Shenzhen: 300027) Pays 1 Bln Yuan for 70 Pct of Feng Xiaogang’s Firm (Chinese article)

MULTINATIONALS: AMD Flees China’s Crumbling Chip Sector

Bottom line: AMD’s sell-down of its China assets, and a record fine against Qualcomm earlier this year reflect China’s fading attraction for global chip makers due to technical and bureaucratic obstacles.

AMD sells down China operations

A trio of headlines from the chip-making sector is showing just how much China has lost its luster for big multinationals, as logistical and technological issues dog this once-promising industry. Leading the headlines is word that struggling US chip maker AMD (NYSE: AMD) is selling most of its Asia-based foundry business, including sizable China operations, to a Chinese partner.

That was followed by announcement of a new very domestic chip-making joint venture anchored by SMIC (HKEx: 981), China’s largest contract foundry that at one time had hopes of becoming a global giant. Last but not least is a headline showing that US giant Qualcomm (Nasdaq: QCOM) was the main recipient of China’s recent anti-monopoly fervor, paying 90 percent of the penalties meted out by one of the nation’s main anti-trust regulators in 10 cases so far this year. Read Full Post…

TELECOMS: China’s Chip Appetite Grows With Marvell Pursuit

Chinese firms eye Marvell

China has developed a sudden appetite for global microchip makers, with the latest reports saying several Chinese suitors are pursuing a purchase of the telecoms chip business of US-based Marvell Technology (Nasdaq: MRVL). This kind of consolidation is sorely needed in the global microchip sector, especially in the telecoms area, where many smaller companies are having trouble competing with global titans Qualcomm (Nasdaq: QCOM) and Taiwan-based MediaTek (Taipei: 2454).

An interesting twist to this story has seen Chinese state-backed firms emerge as some of the main consolidators in this trend, reflecting Beijing’s desire to build up a local chip-making sector. Despite years of trying and billions of dollars in investment, China has yet to find success in building a homegrown chip giant that can challenge big global names like Qualcomm, Intel (Nasdaq: INTC) and Taiwan’s TSMC (Taipei: 2330). Read Full Post…