SemiWEEK: Stocks jumped

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Chip Market Research Services
Order activity edged higher but overall visibility remains low
• Order activity for semiconductor equipment hovered at a warm
76 degrees
• Production and Capacity Plan
Semiconductor Analytics
Semi Market results from last week:
Semiconductor sales finished 2Q20 with
unprecedented weakness in June
Semiconductor Sales Nowcast: 2Q20/2Q19
2Q20 slid to +10%
– Semiconductor Weather1 Report:
Warmed to Sunny
– IC Supply-Demand2 Metrics: Tight
– Electronics Price Trend:
WAHE Bump Rolling Over
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 WAHE Sputters: Jun 5
Customer Satisfaction Survey
White Paper: Technoprobe prevails as top probe card supplier
Chip History Center
People: Early 2000s, a team began to develop the first
functional wafer fab AI decision making system under the
leadership of Gary Heerssen… Thomas Sonderman
discusses Automated Precision Manufacturing… Dick
Deininger discusses Advanced Process Control technology in
wafer fabs in this 2003 interview series…
The Chip Insider
Strategy and Tactics: VLSI 2020 Symposium and COVID
Semiconductor Stocks
• Semiconductor Stock Index was led up 5.5% by JCET
• Semiconductor Equipment Stock Index was led up 4.8% by
ASM Pacific Technology
• EDA Stock Index was led up 1.7% by Cadence
• Electronics Materials Stock Index was led up 0.9% by
SOITEC
• Hottest Stocks: JCET, SMIC, MaxLinear, ASM Pacific
Technology, Advantest, Infineon
Semiconductor WEEK: July 10, 2020
An overview of results and conclusions from recent reports at VLSI

prevails as top probe card supplier
VLSIresearch Customer Satisfaction Survey 2020
Click for White Paper

Technoprobe awarded RANKED 1st
Supplier in Test Subsystems
• Technoprobe, a world leader in
advanced probing solutions, earns
RANKED 1st Test Subsystems
Supplier for a third year
• Customers honor Technoprobe with
5 VLSI Stars
• Technoprobe is the fastest growing
large probe card supplier focused on
customer satisfaction
– success is driven by quality, innovation,
and people
– exceptional customer satisfaction shows
customer appreciation
3

How Customers Perceive Technoprobe
• Technoprobe excels in all areas with a
rating of 9.6 and greater in all 12
categories
• Increases Field Engineering Support
rating by 10 basis points to a
phenomenal 9.9
• Earns average rating of 9.7 across the
categories in Customer Service
• Highest scores*
– field engineering support
– application support
– recommend supplier
– technical leadership
*Listed in order of rating
4

The Chip Insider®'s Graphics File
June 2020
Order activity edged higher but overall visibility
remains low
This issue contains the latest forecast.
Call us to access more details
• Order activity for semiconductor equipment
hovered at a warm 76 degrees
• Memory jumped by another point to 77 degrees,
while the other segments finished nearly flat in
what was a relatively quiet week
• Both IC and Equipment markets have been very
resilient in the midst of the global pandemic
• Although the prospects of the industry in Q3
appear to be on the right track, the outlook for Q4
remains highly uncertain with a lot of downside
bias due to rising cases of COVID-19 in the U.S.
• The positive is that VLSI’s Chip Price
Performance Index started July on a low note

The Chip Insider® Graphics
Production and Capacity Plan:
• IC production is trending higher
Production and Capacity Plan: chart gives rolling averages for
semiconductor production, currently active capacity and current plus
planned capacity in millions of square inches of silicon wafers.

VLSI's Current Forecast
Forecast as of June 2020: 2019 2020 2021
Semi Equipment ($B): 77.0$ 82.7$ 88.1$
Sequential Change -8.0% 7.3% 6.5%
Capacity Utilization: 84.6% 89.6% 92.5%
ICs ($B): 352.3$ 359.2$ 408.6$
IC Units (BU): 299.4 301.2 334.4
Electronics ($B) : 2,122$ 2,020$ 2,208$
Sequential Change -2.0% -4.8% 9.3%
Severe COVID-19 impact in 2H20, recovery 2021
Forecast as of June 2020: 2019 2020 2021
Semi Equipment ($B): 77.0$ 71.2$ 88.1$
ICs ($B): 352.3$ 334.9$ 408.6$
IC Units (BU): 299.4 281.1 334.4
Electronics ($B) : 2,122$ 1,885$ 2,208$

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 WAHE Sputters: Jun 5
W/W:Week-over-WeeksequentialgrowthW/Q:Week-over-QuarterW/Y:Week-over-Year
1: Measures Order Activity 2: Measures Pricing Power
8
Thank you for supporting us through this last issue
of 2018. Semiconductor Analytics will return
January .
Semiconductor sales finished 2Q20 with unprecedented
weakness in June. Still, strength early in the quarter led to a
10% y/y gain. Memory closed out 2Q20 with strong double-
digit growth. Logic was in the high single digits, while Analog
and Power was down.
Semiconductor Sales Nowcast: 2Q20/2Q19
2Q20 slid to +10%
Semiconductor Weather1 Report: 76˚ F
Warmed to Sunny
IC Supply-Demand2 Metrics: Tight
Foundry and OSAT in Shortage
Electronics Pricing Trend:
WAHE Bump Rolling Over

2020 Semiconductor Market Drivers
9
Integrated Circuit sales are weakened
with the end of phase 1 of the WAHE:
• Certainties:
– Coronavirus Pandemic infected economies
– Governments ending economic defibrillation
with cash
– World’s Economy saved by Semiconductors
• WAHE (Work-At-Home Economy) to have 3 Phases
– 5/7nm demand ramps
• Uncertainties:
– Coronavirus resurgence
– U.S.-China Trade War
– China-India Tensions
– 2020 Elections in U.S.

The Chip Insider®
Strategy & Tactics
Strategy and Tactics: VLSI 2020 Symposium and
COVID
Summaries:
VLSI 2020 Symposium: Normally held in Hawaii, VLSI 2020 showed
how participation could zoom up when the travel barrier is removed
— plus lowering prices. There was an increase in registrations. The
IEEE also had record submissions to the Technology side of the
conference… This indicates that research action is shifting from
circuits to technology. And the technology focus is on finding ways to
improve PPAC (Power, Performance, Area, and Cost). Once in the
conference some interesting trends could be seen. First, and least
surprising, was that work in nanoribbon GAAs as a replacement for
tri-gate FinFETs was hot. Kangguo Cheng of IBM presented … The
Last Wavelength: An emergent trend I saw was researchers appear
to be … the plenary from Mike Mayberry of Intel had all the
ingredients of a great plenary. delivered by laying out a new Cost-of-
Ownership problem for our industry…
Coronavirus Watch: I recently found myself in some arguments with
family members who had picked up really wrong ideas on
Coronavirus data and the collection of it from social media sites that
seek to dismiss the danger of this disease and frame as a political
and personal rights issue. Now I did not want to get into the political
issue, because this is personal. But I did want to fact check the points
being made to see if they were true and arm myself for next week’s
American Independence Holiday weekend. So, I did what I do with
data. Anyway, I thought I would share them with you, as I am sure
you’ve run into others who have been swayed by these social media
sites. I know it’s not normal Chip Insider material, but it will arm you
for discussions that may come up around the barbeque grill next
weekend.
“Intelligence is quickness in seeing things as they are”
— George Santayana
Contact us to get the full report and more

Content approved for public release with attribution. Copyright © 2017 VLSI Research Inc. All rights reserved.
www.chiphistory.org
People: In the early 2000s, a visionary team began to develop the first functional wafer fab
AI decision making system under the leadership of one of the industry’s greatest
manufacturing legends, Gary Heerssen. The team’s lineage was from TI’s and IBM’s fully
automated fabs built in the seventies and eighties. They took the lessons they learned there
to build a system that would enable them to compete against companies with five times their
resources. The system they built was composed of 3 parts: advanced process control,
integrated production scheduling, and yield management systems to keep a fab operating
efficiently. Here are some video conversations about what they accomplished and where they
were going:
Originally taped in 2004, Thomas Sonderman discusses Automated Precision Manufacturing
and how it allows a company to compete effectively in the semiconductor industry. The
interview covers the IT needs in semiconductor manufacturing.
Dick Deininger discusses Advanced Process Control technology in wafer fabs in this 2003
interview series. He also expands on how their partnership with IBM was helping them
compete more effectively: Dick Deininger on Advanced Process Control Where is APC
used?
Joint Process Development with IBM

semiStockWEEK: VLSI's Semiconductor Stock Indices grew this week with three
of the indices hitting a new yearly high.
Semiconductors +6%, Equipment +5%, EDA +2%, Electronic Materials +1%.

Semiconductor Stocks:
Weekly Growth and Forward P/E Ratios by Company
VLSI’s Semiconductor Stock Index
was led up 5.5% by JCET followed by
SMIC, MaxLinear, and Infineon.
IDM +1.4%
Foundry & OSAT +10.2%
Fabless & Fablite +4.8%
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 7/10/2020
Semiconductor Stocks
Price
Change
Forward P/E Semiconductor Stocks
Price
Change
Forward P/E
IDM Fab-lite to Fabless
Intel 0.7% 12 AMD 6.8% 37
Micron 1.7% 11 Analog Devices 2.7% 25
ON Semiconductor 6.8% 17 Broadcom 1.3% 13
Samsung Electronics -1.7% – IBM -1.1% 10
SK hynix -3.0% Infineon 9.6% 23
STMicroelectronics 5.9% 23 MagnaChip Semiconductor 0.5% 13
Western Digital -0.3% 7 Maxim 6.1% 29
Foundry & OSAT MaxLinear 18.2% 31
Amkor -0.7% 16 MediaTek 5.3% –
ASE -1.4% 12 NVIDIA 9.0% 42
JCET 39.8% 149 Panasonic 3.2% 11
Kingpak Technology 0.0% – Qualcomm 0.7% 16
SMIC 24.1% 4125 Silicon Laboratories 4.2% 31
TSMC 8.9% 21 Skyworks 2.2% 20
UMC 0.4% 14 Texas Instruments 3.8% 27
Xilinx 4.0% 29

Chip Equipment & Related Stocks:
VLSI’s Semiconductor Equipment
Stock Index was led up 4.8% by ASM
Pacific Technology followed by Advantest.
WFE +3.0%
Test +4.5%
Assembly +9.0%
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 7/10/2020
Equipment Stocks
Price
Change
Forward P/E Equipment Stocks
Price
Change
Forward P/E
Wafer Process: Test:
Applied Materials 2.6% 15 Advantest 10.0% –
ASM International 7.4% 26 Teradyne 3.3% 24
ASML 6.1% 35 FormFactor 0.3% 24
KLA 2.9% 20
Lam Research 5.0% 19 Assembly:
Onto Innovation 3.9% – BESI 1.7% –
Nikon -5.2% – Kulicke & Soffa 7.3% 14
TEL 3.1% – ASM Pacific Technology 18.1%
Veeco Instruments 1.5% 14

Electronic Materials Stocks:
VLSI’s EDA Stock Index was led up 1.7%
by Cadence.
VLSI’s Electronics Materials Stock Index
was led up 0.9% by SOITEC.
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 7/10/2020
EDA & Electronic Materials Stocks
Price
Change
Forward P/E EDA & Electronic Materials Stocks
Price
Change
Forward P/E
EDA DNP 0.7% –
Cadence 3.2% 38 DuPont de Nemours -2.8% 3
Synopsys 0.2% 33 JSR 2.3% –
Electronic Materials Shin-Etsu -0.5% –
BASF -0.1% 2 SOITEC 8.0% –
Cabot Microelectronics -2.1% 19 Tokyo Ohka 1.4% –

Semi
Stocks
Equipment
Stocks
Materials
Stocks
EDA
Stocks
Semi
Stocks
Equipment
Stocks
Materials
Stocks
EDA
Stocks
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%
29-May-20 97.4 91.0 94.9 129.5 2.4% 1.4% 5.8% 5.9% 43 14.6% -12 -3.2% 17.8% 94.0 3.0%
05-Jun-20 106.2 101.6 100.1 130.3 9.0% 11.6% 5.5% 0.6% 50 22.6% -4 -3.6% 26.2% 98.6 4.9%
12-Jun-20 100.7 96.7 95.7 127.8 -5.2% -4.8% -4.4% -2.0% 6 1.4% -47 -13.3% 14.7% 93.9 -4.8%
19-Jun-20 103.3 101.8 96.2 131.2 2.6% 5.3% 0.5% 2.7% 46 18.2% -8 -5.1% 23.3% 95.6 1.9%
26-Jun-20 103.0 100.2 96.1 134.7 -0.3% -1.6% -0.1% 2.7% 20 24.9% -34 -12.0% 36.9% 92.9 -2.9%
03-Jul-20 106.8 104.5 98.2 140.1 3.7% 4.2% 2.2% 4.0% 50 16.3% -3 -3.9% 20.2% 96.6 4.0%
10-Jul-20 112.7 109.5 99.0 142.5 5.5% 4.8% 0.9% 1.7% 43 39.8% -11 -5.2% 45.0% 98.3 1.8%
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: Stocks jumped

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