For Immediate Release
Chicago, IL - May 18, 2012 - Today, Zacks Equity Research
discusses the U.S. Semiconductors, including
A synopsis of today's Industry Outlook is presented below. The
full article can be read at
Manufacturing digital ICs is expensive, as it requires
state-of-the-art technology and processes. On the other hand,
digital products are cheaper, so cost recovery is more difficult.
This has led to specialization in the industry and a greater
contribution from Asian manufacturers. However, a significant
portion of the intellectual property remains with the domestic
One of the primary beneficiaries of the growth in mobile phones,
tablets and the like is
), with its power-efficient, low-performance chip architecture that
dominates the growing mobile phone and tablet markets. With new
versions of ARM chips coming to market, it is likely that the chips
will gradually spread to the server segment as well (probably not a
Others would be
), Samsung and Texas Instruments, all of which are big
semiconductor manufacturers that use ARM architecture. As such, we
remain relatively positive about Samsung and Qualcomm in 2012.
We are also optimistic about Intel and AMD, given their new product
ramps and focus on the data center segment. Although we are a wee
bit cautious about Intel's growth initiatives in mobile and believe
that execution will be key to delivering on its plans, the
company's market position, cash balance, technology lead and
management strategy and execution are positives in our opinion.
AMD is also worth watching, as management has been delivering on
its promises. Moreover, the company is seeing some real success in
its graphics business, which should complement initiatives targeted
at rationalizing its debt, increasing focus on R&D and
operation of a lower-cost model.
The analog and mixed-signal market is dependent on innovation.
Consequently, these products generate higher margins than digital
products. They are also more customized and have longer life
Most of these companies are seeing somewhat stronger demand right
now, although there are some issues based lingering effects of the
Thailand floods and economic sluggishness. We are particularly
), given its recent deal wins, product cycles, order rebound and
position in the communications market.
) has a focus on the automotive end market that should do well this
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