Is it important to analyse Semiconductor Companies?
We believe it is. The semiconductor industry has become one of the largest sectors in the world. It is the foundation of the rapid technological development that has created much of the economic prosperity created over the last few decades, and it is imperative to solving many of the world’s current and future problems.
As a result of the rapid growth rates enjoyed early in the semiconductor industry life cycle combined with intensive merger activity during the mature phase, the dominant companies have become large. Each of them has many stakeholders, directly or indirectly impacted by actions of management. It is important for employees, customers, investors, suppliers and authorities to understand what goes on in the company. This analysis is designed to shed more light on the industry, its companies and their performance.
Customers of semiconductor companies know that the choice of supplier is strategic. The productivity window of a semiconductor product is very narrow with untested parts at the leading edge and obsolete parts at the trailing. Semiconductors age as gracefully as dead fish. To make the right selection, you need as much information about the supplier you can get. You want a supplier with the right size, the right kind of business model and you want to stay clear of acquisition activity. M&A is not your friend when you buy semiconductors.
- A prime data source for us is the financial reports of the semiconductor companies. A number standing alone does not tell much of a story. The number becomes more interesting when you look at it over time and compare it to other numbers. We tell the story we see, you might see a different story based on your knowledge.
- We use GAAP (Generally Accepted Accounting Principles) figures in our analysis as we compare companies to each other. The industry often uses Non-GAAP numbers to better illustrate the operational parameters of the enterprise.
- We have chosen to do most of our analysis by comparing the latest reported quarter to the same quarter the year before. Although this does not give year over year perforance, it is very close and makes it possible to update the numbers every quarter
- Our aim is to analyse semiconductor companies, not the market. That said we do track 80%+ of the industry revenue and makes market assumptions based on our data. Our industry assumptions are based on our data, not the entire market
- We take a market perspective to the companies we analyse so we have chosen to exclude foundry companies as part of our analysis unless explicitly stated. We do not dispute that they are semiconductor companies.
- We include acquisition revenue in our analysis. We compare the combined historical figures of the two merging companies with the current numbers of the surviving company.
Please note that this report is updated quarterly. You will receive the latest edition at time of purchase.
2. Combined Quarterly Results of the Top 25 Companies
3. The CEO View of the Market
4. Semiconductor Conglomerates
5. Semiconductor Revenue and Growth Analysis
6. Competition Grid and Gross Profit Analysis
7. Operating Model Map & Operational Cost Analysis
8. Operational Spend and Margin Analysis
9. Net Profit Analysis
10. Semiconductor CapEx and Cash flow
11. Semiconductor Consolidation
12. The Semiconductor Value Chain
13. Semiconductor Purchasing Index
- Cirrus Logic
- On Semi
- Tsinghua Unigroup