Overseas
Business
• Texas Instruments reported third quarter revenue of $3,77 billion, net income of $1,43 billion and earnings per share of $1,49. Overall, revenue decreased 11% from the same quarter a year ago, as most markets weakened further – in its core businesses, analog revenue declined 8% and embedded processing declined 19%. The company’s fourth quarter outlook is for revenue in the range of $3,07 billion to $3,33 billion, and earnings per share between $0,91 and $1,09.
• Third quarter group revenues for ams were $645,0 million, up 57% sequentially compared to the second quarter and up 41% from $458,7 million in the same quarter of 2018. Adjusted net income for the third quarter was $158,1 million, compared to $17,8 million for the same period last year. Driven by its consumer solutions and positive trends in the smartphone market, the company expects continued strength in the fourth quarter with expected revenues of $610 to $650 million.
•STMicroelectronics reported third quarter net revenues of $2,55 billion, and net income of $302 million or $0,34 diluted earnings per share. This represents revenue growth both quarter-on-quarter ($2,17 billion in revenue, $160 million net income in Q2 2019) and year-on-year ($2,52 billion in revenue, $369 million net income in Q3 2018).
• NXP Semiconductors delivered revenue of $2,3 billion for the third quarter of 2019, and returned $79 million to its shareholders, for a total of $6,6 billion returned to shareholders since July 2018. That revenue figure was up 2% quarter-on-quarter but down 7% year-on-year.
Companies
• ams’ previously aborted takeover bid for OSRAM Licht AG has received a new shot in the arm thanks to a recommendation by OSRAM’s management board and supervisory board for ams’ all-cash takeover for 100% of the share capital of OSRAM at a price of 41,00 Euros per share. In addition, ams has entered into a business combination agreement in an effort to deliver the joint strategic vision and a successful combination of the two companies.
Industry
• The Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors for the month of September 2019 were $35,6 billion, an increase of 3,4 percent over the previous month’s total but 14.6 percent less than sales from September 2018. Sales were down across all regions compared to September 2018: Europe (-6,4 percent), Asia Pacific/All Other (-6,9 percent), Japan (-10,0 percent), China (-12,9 percent), and the Americas (-30,4 percent). The SIA’s board of directors recently elected Keith Jackson, president, CEO and director of ON Semiconductor, as its 2020 chair and Robert Bruggeworth, president, CEO and director of Qorvo, as its 2020 vice chair.
• Texas Instruments’ recent decision to cancel its distribution agreements in China was all the talk at the recent Global Distribution and Supply Chain Leaders’ Summit in Shenzhen. The low-key announcement in early October means the company will do business in China directly, and is expected to lead to the loss of at least 1000 jobs of sales and field application engineers (FAEs) in the country. Rumours are circulating that other chip manufacturers may follow suit, with STMicroelectronics and Qualcomm being consistently named.
• In a further blow to China’s distribution establishment, Avnet launched an Avnet Super Store on Alibaba Group’s China-focused B2B purchasing and wholesale marketplace, 1688.com. The marketplace is home to more than 10 million enterprise storefronts, with 150 million users visiting the site per day. The site serves as a dedicated sourcing channel for wholesale buyers in China and has been expanding its cross-border wholesale business, including bringing foreign suppliers onto the platform.
• Leading companies from the automotive and computing industries announced a collaborative effort toward making fully self-driving vehicles a reality. The new Autonomous Vehicle Computing Consortium (AVCC) brings together industry leaders from automotive, automotive supply, semiconductor and computing to serve as the leading organisation for autonomous computing expertise. Initial members include Arm, Bosch, Continental, Denso, General Motors, Nvidia, NXP Semiconductors and Toyota.
• The microprocessor (MPU) market’s string of nine straight record-high annual sales between 2010 and 2018 is expected to end this year with worldwide MPU revenue dropping 4% to about $77,3 billion because of weakness in smartphone shipments, excess inventories in data centre computers, and the global fallout from the US-China trade war, according to IC Insights. Microprocessor sales are expected to stage a modest rebound in 2020, growing 2,7% to $79,3 billion, and then are forecast to reach a new record-high level of about $82,3 billion in 2021.
© Technews Publishing (Pty) Ltd | All Rights Reserved
printer friendly version