SemiWEEK: America’s search for leading-edge fabs; Stocks rose

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Chip Market Research Services
Order activity is up despite limited visibility
• Order activity for semiconductor equipment surged nearly six
points, jumping past 72 degrees
• IC Inventory Levels
Semiconductor Analytics
Semi Market results from last week:
Coronavirus drove Integrated Circuit sales towards
recession and now the WAHE is pulling it out.
Semiconductor Sales Nowcast: 2Q20/2Q19
Jumped to +17%
– Semiconductor Weather1 Report:
Warmed to Temperate
– IC Supply-Demand2 Metrics:
Tight
– Electronics Price Trend: Soaring
Overall Semi Sales Status Trend:
Peaked: Mar 18 Cold with Dark Clouds: Sep 18 Freezing: Nov 18 Frozen: Jan 19
Freezing: Mar 19 Cold: May 19 Cool: July 19 Temperate: Oct 19 Sunny: Nov 19
Warm: Dec 19 Flu Chills: Feb 28 WAHE Spring: Mar 25
Chip History Center
People: Sunlin Chou on Intel's R&D Pipeline. The history
of semiconductor research at Intel is discussed in this 2004
conversation
Power, Performance, Cost, and Moore's Law: How
Power, Performance, and Cost relate to Moore's Law
The Chip Insider
Strategy & Tactics: America’s search for leading-edge
fabs
Semiconductor Stocks
• VLSI’s Semiconductor Stock Indices rose this week
• Semiconductor Stock Index was led up 4.0% by
Infineon
• Semiconductor Equipment Stock Index was led up
3.1% by Teradyne
• EDA Stock Index was led up 6.3% by Synopsys
• Electronics Materials Stock Index was led up 3.3% by
Cabot Microelectronics
• Hottest Stocks: Infineon, Cabot Microelectronics,
Panasonic, ON Semiconductor, Skyworks, and
Teradyne.
Semiconductor WEEK: May 22, 2020
An overview of results and conclusions from recent reports at VLSI

The Chip Insider®'s Graphics File
May 2020
Order activity is up despite limited visibility
This issue contains the latest forecast.
Call us to access more details
• Order activity for semiconductor equipment surged
nearly six points, jumping past 72 degrees
• Despite the uncertainty from the COVID-19 pandemic,
demand for equipment remains solid as semiconductor
companies continue to push forward with their capacity
upgrades and additions plans
• Working from home economy coupled with surging e-
commerce has offset the weakness in other sectors
like automotive and industrial
• There have been some major changes to the forecasts
in this update
– Equipment sales are now expected to increase 7%
compared to our previous forecast of -6%.
– IC sales are expected to increase nearly 1% compared to
-4% in the previous update
• VLSI’s Chip Price Performance Index (CPPI) slipped
further

VLSI's Current Forecast
Forecast as of May 2020: 4Q19 2019 2020 2021
Semi Equipment ($B): 21.3$ 77.0$ 82.7$ 88.1$
Sequential Change 10.3% -8.0% 7.3% 6.5%
Capacity Utilization: 87.4% 84.6% 88.6% 95.2%
ICs ($B): 94.0$ 352.3$ 354.8$ 408.6$
Sequential Change 3.6% -13.4% 0.7% 15.2%
IC Units (BU): 77.4 299.4 296.4 334.4
Sequential Change -1.8% -6.0% -1.0% 12.8%
Electronics ($B) : 631.5$ 2,122$ 2,020$ 2,284$
Sequential Change 20.6% -2.0% -4.8% 13.0%
Severe COVID-19 impact in 2H20, recovery 2021
Forecast as of May 2020: 4Q19 2019 2020 2021
Semi Equipment ($B): 21.3$ 77.0$ 71.2$ 88.1$
ICs ($B): 94.0$ 352.3$ 330.8$ 408.6$
IC Units (BU): 77.4 299.4 276.6 334.4
Sequential Change -1.8% -6.0% -7.6% 20.9%
Electronics ($B) : 632$ 2,122$ 1,884$ 2,284$

The Chip Insider® Graphics
Total IC inventories are
much healthier than
expected in 1H20
IC Inventory Levels: chart gives rolling averages for semiconductor
integrated circuit inventories held at OEMs, in Die Banks, and the total
Inventory-to-Billing Ratio

Semiconductor Analytics
Last Week in the Semiconductor Market:
Overall Semi Sales Status Trend:
Peaked: Mar 18 Cold with Dark Clouds: Sep 18 Freezing: Nov 18 Frozen: Jan 19
Freezing: Mar 19 Cold: May 19 Cool: July 19 Temperate: Oct 19 Sunny: Nov 19
Warm: Dec 19 Flu Chills: Feb 28 WAHE Spring: Mar 25
W/W:Week-over-WeeksequentialgrowthW/Q:Week-over-QuarterW/Y:Week-over-Year
1: Measures Order Activity 2: Measures Pricing Power
5
Thank you for supporting us through this last issue
of 2018. Semiconductor Analytics will return
January .
The Coronavirus drove Integrated Circuit sales towards
recession and now the WAHE is pulling it out.
Semiconductor sales continued to run well above 2019
levels last week, with a 2nd half revenue ramp similar to
2018.
Semiconductor Sales Nowcast: 2Q20/2Q19
Jumped to +17%
Semiconductor Weather1 Report: 70˚ F
Warmed to Temperate
IC Supply-Demand2 Metrics: Tight
Electronics Pricing Trend: Soaring
Notebooks, Smartphones, and Consumer
Electronics have a seasonal inversion driven by
WAHE (Work-at-Home Economy)

2020 Semiconductor Market Drivers
6
Coronavirus drove Integrated Circuit
sales towards recession and WAHE is
pulling it out:
• Certainties:
– Coronavirus Pandemic infected economies
• Unparalleled Supply and Demand shocks to IC
sales of <10% and units of ~20%
– Macroeconomic ‘V’acuum or ‘U’ – not ‘L’
– World’s Economy saved by Semiconductors
– WAHE (Work-At-Home Economy)
– 7/10nm and 5/7nm demand ramps
• Uncertainties:
– Ability of Governments to defibrillate
economy out of shelter-in-place
– 2020 Elections in U.S.

The Chip Insider®
Strategy & Tactics
Strategy and Tactics: America’s search for leading-edge fabs.
Summaries:
America’s search for leading-edge fabs: The recent battles
between China and America have tended to not be framed by the
semiconductor issue. Instead they have centered on trade and jobs,
with the Coronavirus an emergent hot point. But the semiconductor
issue, often hidden, has been not too far below the surface because it
is an existential threat to national security. As control over oil was the
strategic national security fulcrum of the 20th century,
semiconductors are for the 21st century. Of course, everyone in our
industry knows this, yet... Silicon Shield: For Taiwan, its
semiconductor strategy was conceived around a much more visible
threat: America’s recognition of … Intel’s American Foundry Fab: The
new story is… TSMC’s American Foundry Fab: China has a TSMC
fab, why not America? One oft-stated reason for it… Taiwan:
America’s 51st state? Now if you really want to think outside the
box…
Important ChipChirps™ ChipChirps™ are exclusively available on
VLSI’s App for Android and iOS
weVISION Videos: COVID-19 & the Semi Value Chain with Risto
Puhakka. Coronavirus impact on the semi value chain with Andrea
Lati. Metrology and Inspection's increasing importance with Peter
Jenkins of Infinitesima. The 2010 Decade: The Big Picture with
Andrea Lati of VLSIresearch. weVISION Videos are available as
downloadable podcasts on VLSI’s Smartphone app.
“Execution is Everything” — John Doerr
Contact us to get the full report and more

semiStockWEEK: VLSI's Semiconductor Stock Indices rose along with the market.
EDA index hit a new yearly high this week.
Semiconductors 4%, Equipment 3%, EDA 6%, Electronic Materials 3%.

Semiconductor Stocks:
Weekly Growth and Forward P/E Ratios by Company
VLSI’s Semiconductor Stock Index
was led up 4.0% by Infineon,
Panasonic, ON Semiconductor, and
Skyworks.
IDM +4.4%
Foundry & OSAT -2.6%
Fabless & Fablite +6.8%
AMD AMD Analog Devices ADI AmkorAMKR
ASE ASX Broadcom AVGO IBM IBM
Infineon IFNNY.PK Intel INTC JCET600584.SS
Kingpak Technology6238.TWO
Micron Technology MU
On Semiconductor ON Panasonic PC
MagnaChip Semiconductor MX Maxim MXIM
MaxLinear MXL MediaTek 2454.TW
NVIDIA NVDA Qualcomm QCOM
Samsung Electronics 005930.KS Silicon
Laboratories SLAB Skyworks SWKS SMIC SMI
STMicroelectronics STM
Texas Instruments TXN TSMC TSM UMC
UMC Western Digital WDC Xilinx XLNX
Weekly Gains 5/22/2020
Semiconductor Stocks
Price
Change
Forward P/E Semiconductor Stocks
Price
Change
Forward P/E
IDM Fab-lite to Fabless
Intel 6.8% 13 AMD 1.8% 36
Micron 1.2% 9 Analog Devices 9.1% 22
ON Semiconductor 11.2% 10 Broadcom 6.2% 12
Samsung Electronics 1.9% – IBM 1.2% 10
SK hynix -0.7% Infineon 13.5% 19
STMicroelectronics 2.1% 19 MagnaChip Semiconductor 8.2% 12
Western Digital 8.2% 7 Maxim 7.8% 26
Foundry & OSAT MaxLinear 8.3% 24
Amkor 4.5% 13 MediaTek 7.5% –
ASE -6.8% 10 NVIDIA 6.3% 40
JCET -5.3% 92 Panasonic 11.4% 34
Kingpak Technology 4.2% – Qualcomm 3.9% 13
SMIC -11.7% 1692 Silicon Laboratories 4.2% 29
TSMC 0.0% 16 Skyworks 10.2% 17
UMC -3.0% 13 Texas Instruments 4.8% 23
Xilinx 4.0% 26

Chip Equipment & Related Stocks:
VLSI’s Semiconductor Equipment
Stock Index was led up 3.1% by
Teradyne.
WFE +3.9%
Test +4.3%
Assembly -0.1%
Applied Materials AMAT Advantest ATEYY
ASM International ASMI
ASM Lithography ASML ASM Pacific 0522.HK
BE Semiconductor BESIY.PK
FormFactor FORM KLA KLAC
Kulicke & Soffa KLIC Lam Research LRCX
Onto Innovation ONTO Nikon 7731
Teradyne TER Tokyo Electron Limited 8035
Veeco VECO
Weekly Gains 0 5/22/2020
Equipment Stocks
Price
Change
Forward P/E Equipment Stocks
Price
Change
Forward P/E
Wafer Process: Test:
Applied Materials 4.5% 13 Advantest -1.3% –
ASM International 4.1% 19 Teradyne 10.3% 18
ASML 9.2% 29 FormFactor 3.8% 21
KLA 3.3% 17
Lam Research 3.7% 15 Assembly:
Onto Innovation 3.3% – BESI 1.1% –
Nikon 3.3% – Kulicke & Soffa 6.6% 13
TEL -1.8% – ASM Pacific Technology -7.9%
Veeco Instruments 5.3% 13

Electronic Materials Stocks:
VLSI’s EDA Stock Index was led up 6.3%
by Synopsys, hitting a new high for the
year.
VLSI’s Electronics Materials Stock Index
was led up 3.3.% by Cabot
Microelectronics.
BASF BASFY Cabot Microelectronics CCMP
Cadence CNDS DNP 7912 DuPont DD
JSR 4185 Shin-Etsu 4063 SOITEC
SOI.PA Synopsys SNPS Tokyo Ohka 4186
Weekly Gains 5/22/2020
EDA & Electronic Materials
Stocks
Price
Change
Forward P/E
EDA & Electronic Materials
Stocks
Price
Change
Forward P/E
EDA DNP 2.8% –
Cadence 4.8% 32 DuPont 7.1% 4
Synopsys 7.8% 29 JSR -0.1% –
Electronic Materials Shin-Etsu -0.2% –
BASF 6.8% 2 SOITEC -0.1% –
Cabot Microelectronics 12.6% 18 Tokyo Ohka -2.5% –

Semi
Stocks
Equipment
Stocks
Materials
Stocks
EDA
Stocks
Semi
Stocks
Equipment
Stocks
Materials
Stocks
EDA
Stocks
18-Oct-19 86.2 86.7 97.5 94.5 0.2% 0.3% 2.7% -1.5% 28 11.2% -23 -6.0% 17.2% 92.2 0.5%
25-Oct-19 88.2 92.4 100.0 94.9 2.4% 6.6% 2.5% 0.4% 46 15.6% -7 -16.3% 31.9% 93.3 1.2%
01-Nov-19 90.3 92.6 101.2 94.8 2.4% 0.2% 1.3% -0.1% 36 9.9% -15 -12.1% 22.0% 94.7 1.5%
08-Nov-19 91.7 94.9 103.2 96.1 1.5% 2.5% 1.9% 1.3% 37 12.5% -14 -4.2% 16.7% 95.5 0.9%
15-Nov-19 92.0 97.0 101.5 97.6 0.4% 2.1% -1.6% 1.6% 31 10.8% -20 -5.0% 15.8% 96.3 0.9%
22-Nov-19 90.0 92.0 98.7 95.9 -2.2% -5.1% -2.8% -1.8% 7 5.7% -44 -17.7% 23.4% 96.0 -0.3%
29-Nov-19 90.9 93.7 96.7 100.1 1.0% 1.8% -2.0% 4.4% 37 5.0% -14 -15.0% 20.0% 96.9 1.0%
06-Dec-19 92.6 94.7 95.5 95.5 1.8% 1.1% -1.2% -4.6% 33 8.2% -19 -4.8% 13.0% 97.1 0.2%
13-Dec-19 96.7 98.0 100.0 96.9 4.5% 3.5% 4.7% 1.5% 48 10.7% -3 -1.4% 12.1% 97.8 0.7%
20-Dec-19 99.2 99.9 100.1 99.6 2.6% 1.9% 0.1% 2.7% 39 12.5% -13 -8.4% 20.9% 99.4 1.7%
27-Dec-19 100.0 100.0 100.0 100.0 0.8% 0.1% -0.1% 0.4% 29 5.9% -23 2.7% 8.6% 100.0 0.6%
03-Jan-20 100.3 100.2 98.9 100.5 0.3% 0.2% -1.1% 0.5% 23 9.5% -24 -3.4% 12.9% 99.8 -0.2%
10-Jan-20 101.5 100.9 99.2 104.7 1.2% 0.7% 0.2% 4.2% 32 7.2% -22 -4.8% 12.0% 100.8 0.9%
17-Jan-20 104.7 104.8 101.0 106.4 3.2% 3.9% 1.8% 1.7% 45 19.1% -10 -3.8% 22.9% 102.8 2.0%
24-Jan-20 106.1 105.1 100.5 107.8 1.3% 0.3% -0.5% 1.3% 29 14.9% -25 -10.8% 25.7% 101.7 -1.0%
31-Jan-20 98.4 98.4 96.0 103.8 -7.3% -6.3% -4.5% -3.8% 3 2.2% -51 -17.7% 19.9% 99.5 -2.1%
07-Feb-20 102.5 101.3 100.4 107.2 4.2% 2.9% 4.6% 3.3% 45 21.4% -10 -11.7% 33.1% 102.7 3.2%
14-Feb-20 106.5 106.6 101.0 114.2 3.9% 5.3% 0.6% 6.5% 47 27.5% -8 -10.0% 37.5% 104.3 1.6%
21-Feb-20 103.7 99.3 98.1 106.4 -2.6% -6.9% -2.8% -6.9% 6 4.5% -49 -17.1% 21.6% 103.0 -1.3%
28-Feb-20 93.1 90.4 85.5 96.2 -10.2% -8.9% -12.9% -9.5% 0 -0.8% -55 -21.3% 20.5% 91.2 -11.5%
06-Mar-20 91.8 91.0 84.8 95.1 -1.5% 0.6% -0.7% -1.2% 18 7.9% -35 -11.0% 18.9% 91.7 0.6%
13-Mar-20 81.1 78.3 71.0 90.7 -11.6% -13.9% -16.3% -4.6% 0 -2.1% -55 -26.6% 24.5% 83.7 -8.8%
20-Mar-20 69.6 65.2 67.0 78.4 -14.2% -16.7% -5.7% -13.6% 3 15.3% -52 -28.9% 44.2% 71.1 -15.0%
27-Mar-20 78.3 78.7 76.6 88.7 12.6% 20.6% 14.4% 13.1% 52 36.1% -3 -11.7% 47.8% 78.4 10.3%
03-Apr-20 77.1 73.4 72.6 89.9 -1.6% -6.7% -5.3% 1.4% 14 17.4% -41 -15.1% 32.5% 76.8 -2.1%
10-Apr-20 85.6 84.0 82.6 99.7 11.1% 14.5% 13.8% 10.9% 54 38.2% -1 -2.3% 40.5% 86.1 12.1%
17-Apr-20 89.1 88.4 82.7 111.3 4.0% 5.2% 0.2% 11.7% 41 17.0% -10 -6.1% 23.1% 88.7 3.0%
24-Apr-20 88.7 86.1 82.5 111.9 -0.4% -2.6% -0.2% 0.6% 17 9.2% -37 -9.8% 19.0% 87.6 -1.3%
01-May-20 89.1 83.9 85.0 107.5 0.5% -2.6% 3.1% -4.0% 27 19.1% -28 -11.9% 31.0% 87.4 -0.2%
08-May-20 94.8 91.9 88.4 115.9 6.4% 9.6% 3.9% 7.8% 52 31.0% -3 -2.4% 33.4% 90.4 3.5%
15-May-20 91.4 87.1 86.8 115.1 -3.6% -5.3% -1.8% -0.7% 10 16.8% -45 -21.1% 37.9% 88.4 -2.3%
22-May-20 95.1 89.8 89.7 122.3 4.0% 3.1% 3.3% 6.3% 42 13.5% -12 -11.7% 25.2% 91.2 3.2%
The Prior
Week's
Close
S&P500
MaxGrowth
Companies
Up
Companies
Down
Rangeof
Growth
MinGrowth
S&P500
Growth
VLSI’s Indices of Chip Industry Stocks Weekly Growth

SemiWEEK: America’s search for leading-edge fabs; Stocks rose

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