Semiconductor and semi-equipment stocks are selling off amid the U.S. government’s attempts to prevent China’s Huawei Technologies from using American technology while also bolstering U.S. chip manufacturing capacity.
KLA moved above 177.27 buy point – intraday. Chip-equipment maker has been finding resistance around 177-180. Also could view 184.60, just above left-hand side of base, as an entry.
Rick Wallace became the CEO of KLA Corporation (NASDAQ:KLAC) in 2006. This analysis aims first to contrast CEO...
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KLAC earnings call for the period ending March 31, 2020.
KLA Corporation (NASDAQ: KLAC) today announced the KLA Foundation is creating a $2 million fund to focus on global relief efforts benefiting nonprofit organizations in regions with the highest number of individuals affected by COVID-19, and locations with high-risk populations. The two-phase charitable funding initiative will provide support for food banks, elderly communities, public hospitals and medical units, and educational infrastructure. Phase 1 will target immediate relief for vulnerable communities, while phase 2 will focus on recovery and assistance. KLA has also increased the limit on corporate matching for employee contributions to $10,000 for non-profits in order to amplify individual employee efforts and empower and encourage donations to causes close to their hearts.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
KLA-Tencor's (KLAC) fiscal third-quarter results are likely to reflect the global coronavirus-driven economic crisis.
Fund's top buys for the quarter include Agilent, Square Continue reading...
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. plans to spend $12 billion building a chip plant in Arizona, a decision designed to allay U.S. national security concerns and shift more high-tech manufacturing to America.TSMC said Friday it will start construction of its next major fabrication facility in 2021, to be completed by 2024. While the investment falls short of its previous expenditure on cutting-edge factories, it’s a shift for a company that now makes semiconductors for major names like Apple Inc. and Huawei Technologies Co. mainly from its home base of Taiwan.As the world’s largest and most advanced maker of chips for other companies, TSMC plays a crucial role in the production of devices from smartphones and laptops to servers running the internet. Its decision to situate a plant in the western state comes after White House officials had warned repeatedly about the threat inherent in having much of the world’s electronics made outside of the U.S. TSMC had negotiated the deal with the administration to create American jobs and produce sensitive components domestically for national security reasons, according to people familiar with the situation.The Asian chipmaker’s U.S. investment underscores the delicate balance it needs to strike between its huge roster of American clients and China, which views independently governed Taiwan as part of its territory. Beijing’s ambition of creating a world-class domestic semiconductor industry has unnerved Washington, which fears the country’s technological ascendancy may pose a longer-threat. Executives at TSMC, which operates plants in Nanjing and Shanghai and makes chips that go into everything from 5G networks to American fighter jets, have emphasized the company is neutral.“The scale & technology is similar to what TSMC did in China, suggesting a balance between the U.S. & China,” Sanford C. Bernstein & Co. analysts led by Mark Li wrote after the announcement. “Overall, this is probably the minimal price to stay neutral. TSMC needs both U.S. & China to maintain scale & stay competitive and this is probably the minimal cost to keep this strategy.”Read more: Huawei Warns of ‘Pandora’s Box’ If U.S. Curbs Taiwan SupplyThe envisioned facility represents a small step in global industry terms. Upon completion, it will crank out 20,000 wafers a month, versus the hundreds of thousands that TSMC’s capable of from its main home base. And it will employ 5-nanometer process technology, a current standard that will likely become a few generations old by the time output begins in a few years.The higher cost of operating in America may have been a factor ahead of the decision. A true cutting-edge fab is expensive to build: The company spent NT$500 billion ($17 billion) to build an advanced facility in the southern Taiwanese city of Tainan that will supply new iPhones this year. It plans another $16 billion in capital spending in 2020. The Arizona plant still requires approval from TSMC’s board, which may hinge on incentives.“There is a cost gap, which is hard to accept at this point. Of course, we have -- we are doing a lot of things to reduce that cost gap,” TSMC Chairman Mark Liu said on a recent analyst conference call.U.S. Won’t Tolerate Tech Fence-Sitters Any Longer: Tim CulpanIf the federal government provides cash for a U.S. plant, it’ll mark a shift in policy and rhetoric from a Republican administration. Trump’s White House has rarely supported such direct industrial intervention, favoring market dynamics. A similar government-backed effort with Foxconn -- Apple’s main iPhone assembler -- in Wisconsin has so far not created as many jobs as expected.However, emerging trends may be forcing a reconsideration. The U.S. government is already giving or lending billions of dollars to keep companies afloat in the midst of a pandemic-fueled recession. The crisis has also highlighted how vulnerable global supply chains are to such shocks.The White House may also be motivated by broader political factors. Trump has attacked international trade deals and tried to limit China’s access to semiconductor technology, seeking to contain the country’s technological ascent. TSMC said its Arizona facility will create 1,600 jobs and a deal to bring highly skilled work to Arizona may help Trump’s re-election prospects this year.“TSMC’s plan to build a $12 billion semiconductor facility in Arizona is yet another indication that President Trump’s policy agenda has led to a renaissance in American manufacturing and made the United States the most attractive place in the world to invest,” U.S. Secretary of Commerce Wilbur Ross said in a statement.By producing chips for many of the leading tech companies, TSMC has amassed the technical know-how needed to churn out the smallest, most efficient and powerful semiconductors in the highest volumes. It manufactures important components designed by Apple and most of the largest semiconductor companies, including Qualcomm Inc., Nvidia Corp., Advanced Micro Devices Inc. and China’s Huawei. Shares of Applied Materials Inc., Lam Research Corp. and KLA Corp. rose on optimism that these U.S.-based providers of chipmaking equipment may face fewer export controls when supplying TSMC.Concentrating such valuable capabilities in the hands of one company in Asia is a concern for the U.S., especially when, across the Strait of Taiwan, China is rushing to develop its own semiconductor industry.TSMC’s local rival, GlobalFoundries Inc., has given up on advanced manufacturing and Intel Corp., the world’s largest chipmaker, mainly manufactures for itself. Its attempt to become a so-called foundry for external clients has failed to gain major customers. TSMC’s only other significant challenger is South Korea’s Samsung Electronics Co., which is investing more than $116 billion in its effort to keep up with the leader.“TSMC welcomes continued strong partnership with the U.S. administration and the State of Arizona on this project,” the company said in a statement. “This project will require significant capital and technology investments from TSMC. The strong investment climate in the United States, and its talented workforce make this and future investments in the U.S. attractive to TSMC.”Read more: Foxconn Factory Subsidy Estimate Slashed by Wisconsin Agency(Updates with analyst’s comment from the fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
By Yasin Ebrahim
KLA Corporation (NASDAQ: KLAC) today announced it has entered into a firm commitment underwriting agreement on Feb. 19, 2020 to sell $750 million aggregate principal amount of its 3.300% Senior Notes due 2050 (the "notes") under an automatic shelf registration statement on file with the Securities and Exchange Commission (the "SEC"). The offering is expected to settle on Feb. 28, 2020, subject to customary closing conditions.
KLA Corporation (NASDAQ: KLAC) announced today webcasts for upcoming virtual investor conferences:
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical...
KLA Corporation (NASDAQ: KLAC) announced today that the company will conduct an audio webcast and conference call to review its third quarter fiscal year 2020 results on Tuesday, May 5, 2020 at 2 p.m. PT. The company's results will be published on the same day after the stock market closes as well as supplemental disclosures including an earnings slide presentation.
Companies in the sector rallied on a report that Taiwan Semiconductor Manufacturing is planning to build a major chip foundry in Arizona.
Q3 2020 KLA Corp Earnings Call
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
KLA Corporation (NASDAQ: KLAC) today announced the formation of a new business group focused on growth in its Electronics, Packaging and Components (EPC) businesses. Under the leadership of KLA Executive Vice President Oreste Donzella, the EPC group extends KLA's leadership in systems and services across the semiconductor and microelectronics value chain. The EPC group brings together the ICOS, Orbotech and SPTS Technologies organizations to target growth opportunities in new and expanding end markets.