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Are Those Five Semiconductors on Track to Bounce Back This Year?
[January 14, 2013]

Are Those Five Semiconductors on Track to Bounce Back This Year?


LONDON, January 14, 2013 /PRNewswire via COMTEX/ -- Semiconductor manufacturers, which include ON Semiconductor Corp. (NASDAQ: ONNN), Texas Instruments Inc. (NASDAQ: TXN), Advanced Micro Devices Inc. (NYSE: AMD), STMicroelectronics NV (NYSE: STM) and Intel Corp. (NASDAQ: INTC), are optimistic that they can build upon the momentum generated at the end of 2012. After a dismal start, chip sales did not improve on a year-over-year basis until November according to the Semiconductor Industry Association. The SIA reported global sales reaching $25.73 billion in November marking a 2% increase over the year prior period. The key markets of the Asia/Pacific region, North America and Europe also saw sequential increases in chip sales while Japan posted a notable decline. See how companies in this industry have grown over the past years and how they are expected to perform in 2013. Talk to our analysts, sign up now for free at http://www.stockcall.com/register Share prices for many have risen along with chip sales over the last three months. ON Semiconductor Corp. has been one of the more impressive chipmakers; shares improved by over 25% in the last 90 days. Optimism for a strong 2013 is further evident in the flurry of activity from several of the industry's leaders in the past few weeks. Our financial experts can give you insight on how the industry is projected to perform for the quarter or full year. Sign up now at http://www.stockcall.com/register Higher levels of competition not only pressured prices but also put increased importance on innovation and getting new products to market. Chipmakers aggressively rolling out new designs and products are among the best positioned to better their fortunes in 2013. Texas Instruments Inc. has excelled in this regard through the first two weeks of the year. The chipmaker rolled out its latest SimpleLink Wi-Fi CC3000 module which facilitates the integration of displayless appliances and devices into wireless networks capable of being operated by a smartphone or tablet. The product's concurrent launch with the recovering housing market makes it a particularly interesting technology for investors to keep an eye on. Advanced Micro Devices Inc. has also been active on the product launch front. The California-based tech outfit rolled out a new line of graphic processing units (GPUs) for use within Ultrabooks and desktops. Asustek, Lenovo and Samsung are among companies incorporating its mobile GPUs into their products. Get our analysts' take on this industry and these two formidable players for free, register with us now http://www.stockcall.com/register Collaborative efforts will likely continue to be a theme this year for semiconductor manufacturers. Uneven demand and macroeconomic headwinds have led many companies to favor joint efforts. They typically provide less of an upfront investment and subsequently less risk but at the same time normally yield less than solo ventures. STMicroelectronics NV recently teamed up with Quantenna Communications on a new reference design for Wi-Fi set top boxes to improve multi-room digital video recorders. The innovative solution will allow users to view, record and delete recordings from any room in the house.



Tapping into markets offering high operating margins will also create opportunities for several chipmakers this year. The burgeoning data center space currently offers some of the best growth prospects despite relatively high levels of competition. This is primarily because demand and data volumes keep growing seemingly independent of broader macroeconomic trends. Intel Corp.'s strong presence in high-end, high-barrier-to-entry, data center submarkets, makes it one of the more attractive plays in the industry at this time. Find out more about Intel by talking to one of our financial professionals at http://www.stockcall.com/register A variety of headwinds will still challenge chipmakers looking to reverse their fortunes this year. Pricing pressure will affect nearly every company. The difficult pricing environment is the direct result of uneven demand. Low demand led to increased competition which in turn caused companies to accept narrower margins. Weak performances from end-markets in some regions like personal computers, telecommunications equipment and consumer electronics have also compounded the problems created by soft demand and a difficult pricing environment.

Moving forward, chipmakers will certainly face difficulties this year but there are several factors pointing towards a bounce-back year for the industry. Renewed focus on innovation and diversifying product lines should help combat pricing pressure and uneven demand. Improving macroeconomic fundamentals and a greater willingness to embrace partnerships and collaborative efforts also bodes well for a better industry-wide performance in 2013. See how companies each of these five companies are projected to perform in 2013. Talk to your analysts by joining us for free at http://www.stockcall.com/register About StockCall.com StockCall.com is a financial website where investors can have easy, precise and comprehensive research and opinions on stocks making the headlines. Sign up today to talk to our financial analyst at http://www.stockcall.com SOURCE StockCall.com

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