semiconductors

Why the chip stocks are down

A colleague recently asked if I knew why semiconductor stocks significantly underperformed the market over the past five years, even though chip sales have seen double-digit growth during the same period. Being a veteran of the industry, I surprised both of us by not knowing the answer. So I decided to find out.

First, the facts. The PHLX semiconductor sector index (SOX) declined at a rate of 2.9 percent per year over the past five years, while Merrill Lynch's semiconductor index exchange-traded fund (SMH) declined 1.0 percent per year.

The Nasdaq, on the other hand, experienced a 4.8 percent compound annual growth rate (CAGR) during the same period. Likewise, the Dow and S&P 500 respectively grew 3.7 percent and 3.9 percent annually.

Indeed, the semiconductor sector has significantly underperformed the broad market. … Read more

Memory chip venture says technology beats flash

Is MRAM better than flash memory? That's a question a new venture business will try to answer.

Former Motorola chip unit Freescale Semiconductor announced Monday that it has joined with several venture capital firms to form an independent company focused on MRAM (Magnetoresistive Random Access Memory).

The new company, EverSpin Technologies, will "expand its current portfolio of standalone MRAM and related magnetic-based products," the companies said in a statement.

MRAM uses magnetic materials combined with conventional silicon circuitry to deliver a high-performance permanent storage device.

But MRAM must compete with quickly evolving technologies like flash memory-based solid … Read more

Semiconductor sales up 5.9 percent in April

Semiconductor sales grew 5.9 percent worldwide in April, a healthy clip given the current sluggish economy, the Semiconductor Industry Association reported Monday.

Chip sales rose to $21.2 billion in April, up from $20.1 billion a year ago and flat with the previous month. The SIA noted April sales were essentially in line with historical industry patterns.

"Despite steep increases in energy costs that have diminished the disposable income of consumers, worldwide sales of semiconductors grew by a healthy 5.9 percent compared to April 2007," George Scalise, SIA president, said in a statement.

Weakness in … Read more

GCT claims WiMax chip in Asus Eee PC

WiMax is in the cards for the Eee PC. Asus will demonstrate notebooks Monday that integrate WiMax chips from San Jose, Calif.-based GCT Semiconductor.

Despite recent statements that the Eee PC 901 will not get WiMax, GCT Semiconductor announced--along with Asus--Sunday that Asus has integrated GCT's GDM7205 WiMAX single-chip silicon into the F8 notebook series and Eee PC.

GCT says the F8 series and Eee PC will be demonstrated with WiMax at the WiMax Expo Taipei that begins on June 2nd.

The widely-reported specifications for the Eee PC 901 are a 1.6GHz Atom processor, an 8.9-inch … Read more

IBM: It takes a consortium to build 22-nanometer chips

IBM's research facility in Albany, N.Y., is working toward the ability to build chip features based on 22-nanometer manufacturing technology--and drawing expertise from a diverse group of engineers and scientists.

When future generations of chips reach feature sizes in the realm of a billionth of a meter, IBM says, it will take a global village of chip companies, including Advanced Micro Devices, Samsung, Singapore-based Chartered Semiconductor, and Germany-based Infineon, to carry out development and manufacturing.

Currently, IBM and its partners are in the initial stages of 45-nanometer production. (Intel is already in commercial production of 45-nanometer processors.) This … Read more

Cypress' T.J. Rodgers on solar, politics, and capitalism, part 2

q&a SAN JOSE--T.J. Rodgers is an unapologetic capitalist who happens to be the chief executive of San Jose, Calif.'s, Cypress Semiconductor. The two roles, as you'll soon see, are deeply intertwined.

Cypress' product catalog includes things like programmable logic devices, USB controllers, and SRAM chips--the basic building blocks of modern gadgets and computers.

Today in Silicon Valley, though, Rodgers is just as well-known for his role in buying and building up SunPower, which sells rooftop solar systems that provide power at prices competitive with utility rates. SunPower's market capitalization is more than $5 billion, … Read more

Cypress' T.J. Rodgers on solar, politics, and capitalism, part 1

q&a SAN JOSE, Calif.--T.J. Rodgers is an unapologetic capitalist who happens to be the chief executive of San Jose's Cypress Semiconductor. The two roles, as you'll soon see, are deeply intertwined.

Cypress's product catalog includes things like programmable logic devices, USB controllers, and SRAM chips--the basic building blocks of modern gadgets and computers.

Today in Silicon Valley, though, Rodgers is just as well known for his role in buying and building up SunPower, which sells rooftop solar systems that provide power at prices competitive with utility rates. SunPower's market capitalization is more … Read more

Don't believe everything you read

During the back half of the 1990s, I was in charge of corporate marketing at Cyrix, a Texas-based microprocessor company, and at National Semiconductor, the company that bought Cyrix.

Today, I looked at some of the CNET news stories I was quoted in back then. I couldn't believe some of the blustery crap that spewed effortlessly out of my mouth.

Everything we did was the fastest, most powerful, most highly integrated, lowest cost, blah, blah, blah. The processor gods blessed everything we designed. Customers were lining up around the block. Intel was the devil incarnate. Advanced Micro Devices was just a lowly also-ran, doomed to forever live in Intel's shadow.

As the story turns out, Cyrix imploded and National Semiconductor blew I-don't-know-how-many-billion dollars cleaning up the mess. Intel's still the world's largest semiconductor company, and AMD--well, AMD at least survived.… Read more

Who profits from semiconductor spin-offs?

We've seen a horde of semiconductor spin-offs these past 10 years. Why all of a sudden? Companies are refocusing on core competencies and unloading unprofitable, sometimes debt-ridden businesses. There's also an ongoing and apparently interminable disaggregation of the electronics industry.

The latest trend is for semiconductor companies to spin off product or application-focused companies. I'm not sure that's always the right move, but you'll see a lot more of that in the coming years.

Here are 10 notable chip divestitures. A bunch of them went public during the tech bubble--exciting for them, not so much for long-term investors who, for the most part, took it in the shorts.… Read more

Cameras with built-in geotagging on horizon

Geotagging, in which digital photos are labeled with the location where they were taken, is mostly unfamiliar to photographers today. But new developments are likely going to put the technology on the map.

In interviews at the Photo Marketing Association trade show in Las Vegas recently, several camera executives expressed an interest in geotagging and some companies were demonstrating technology. It's clear that mainstream geotagging is a matter of when, not if.

The strongest evidence I encountered is Air Semiconductor, a start-up building a chip designed to let cameras process GPS (Global Positioning System) satellite signals so latitude and … Read more