Semiconductor Manufacturing International Corp (SMIC,
SMIC surged 15 percent to HK$0.85 (US$0.11) at the midday break, the biggest increase since its initial public offering in March 2004. The Shanghai-based chipmaker acquired the right to employ IBM technology to make 45-nanometer chips for mobile devices and consumer electronics. Financial terms weren't disclosed.
The license allows SMIC to expand its range of chips for third-generation mobile phones, which run broadband Internet and video. The company is investing in advanced technology to extend its lead over its nearest rival, Singapore's Chartered Semiconductor Manufacturing Ltd.
"To the extent that SMIC successfully ramps up" production of more advanced chips in 2009, "we believe Chartered, as an existing foundry partner to IBM, could lose some market share," Donald Lu (
Lu has a "sell" rating on Chartered and a "neutral" recommendation on SMIC.
Chartered, which counts IBM as its second-biggest customer, fell 0.5 percent to S$0.97 at the 12:30pm break. The shares have fallen 24 percent this year, making it the third-worst performer on the benchmark Straits Times Index.
"We'll deal with the competitive pressure and the challenges this development might bring," Chartered chief executive officer Chia Song Hwee said in a conference call yesterday.
"We've an early start and customer engagement" on 45nm chips, he said.
Chartered is a member of an industry group led by IBM for chip research and development on a common platform technology. The group also includes Samsung Electronics Co and Infineon Technologies AG.
SMIC posted sales of US$1.47 billion last year, while Chartered reported revenue of US$1.44 billion. Market leader Taiwan Semiconductor Manufacturing Co (
"Having the technology is only one part of the game, SMIC still has a lot of room for improvement" in producing 65nm chips, said Warren Lau, an analyst at Macquarie Group Ltd, who has an "underperform" rating on SMIC.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS