The Chip Crunch is on: Stocks to Watch (OTC PINK: $GTCH) (NASDAQ: $INTC) (NASDAQ: $MXIM) (NASDAQ: $MU)
Solutions to Address the Global Microchip Shortages and Future Demands
Point Roberts, WA and Delta, BC - August 9, 2021 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering technology stocks releases a special report on the microchip shortages currently impacting the global economy and how companies are addressing the issue.
In a recent investing article on the sector it was noted, "An acute shortage of semiconductors has been hurting several industries, with carmakers and electronic goods manufacturers suffering the most. This has led many carmakers to temporarily halt production, which is now affecting their sales and revenues."
Glenn O'Donnell, Vice President, Research Director of Forrester Research said in his blog, "The pandemic played a role in this demand surge, too. The surging demand seems to have caught the chip fabs by surprise. Capacity has been increasing but not nearly fast enough to keep up. The pandemic temporarily shut down chip fab capacity. This caused a backup similar to the impact of the Ever Given fiasco on the Suez Canal. That chip backlog is still taking time to flush through."
"Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023."
GBT Technologies Inc. (OTC Pin k: GTCH), an early stage technology developer in (IoT), Artificial Intelligence (AI) and Enabled Mobile Technology Platforms, is looking to bring a new solution to the microchip sector. The Company recently announced it filed a nonprovisional patent application for ICs automatic design rule correction system and method; application #17391292 with the US Patent and Trademark Office. The patent protects systems and methods for automatic correction of geometrical design rule violations which typically takes vast amount of time to correct manually.
From the news: These systems and methods automatically correct the IC layout without any manual intervention, maintaining its electrical connectivity while keeping compliance with Design For Manufacturing (DFM) and Reliability Verification (RV) constraints. A typical process of manual correction of design rule violations may take several hours or even days, per layout block; and significantly, increases the overall design time. The invention protects a system that can do the correction within minutes using Artificial Intelligence and neural networks algorithms. Another important aspect is the capability of the system to perform a full hierarchical correction throughout the microchip's sub-blocks. The number and complexity of a microchip's design rules have dramatically increased over the recent decade especially in advanced nanometer processes of 7nm and below. This creates a bottleneck of designing advanced chips in a reasonable time due to the design rule violation complexity and amount. With a click-of-a-button this invention automatically fixes design rule violations with and can be a major IC layout productivity enhancement system, enabling higher silicon yield, bringing microchip's to market more quickly. IC design firms will benefit from designing smaller chips, faster and much cheaper, which will create many new markets and opportunities.
From the news: "This patent is a major game changer especially for advanced microchips of 7nm and below. As microchip's manufacturing processes design rules are constantly getting more complex. There is a need for enhancement technology to shorten the vast amount of time invested in manual correction. Design rules are constraints dictated by the fabrication process and must be obeyed to correctly manufacture the integrated circuit. This invention protects a system and method for automatic correction of geometrical design rules while maintaining the electrical connectivity and other essential rules like reliability and DFM constraints. This type of system is a significant productivity enhancer tool within any IC's design flow and will majorly reduce the overall chip's design time including, time to market factor. Additionally, design changes and modifications will be able to be performed much faster and more efficiently. Microchips will be able to be made faster, smaller and with increased silicon yield, enabling a much higher profit margin. We strongly believe that this technology will create a new standard in this arena enabling the production of more integrated circuits in a much shorter time and with lower costs."
GBT has assembled a team with extensive technology expertise and is building an intellectual property portfolio consisting of many patents. GBT's mission is to license the technology and IP to synergetic partners in the areas of hardware and software. Once commercialized, it is GBT's goal to have a suite of products including smart microchips, AI, encryption, Blockchain, IC design, mobile security applications, database management protocols, with tracking and supporting cloud software (without the need for GPS).
Attesting to the high microchip demand, Intel Corporation (NASDAQ:INTC) CEO, Pat Gelsinger recently told Yahoo Finance Live he has over 100 companies in the pipeline that want the tech giant to produce the chips it designs.
"The industry needs the supply. Intel is stepping into that with leading-edge technologies for a globally balanced supply chain. This is good for the United States and it's good for the tech industry," Gelsinger said.
Intel announced recently that it will begin making chips for Qualcomm and Amazon. Gelsinger declined to share the value of the deals, but noted the foundry business is a more than $100 billion market.
Now Gelsinger just has to ramp up Intel's infrastructure to turn that pipeline into cold, hard cash.
Intel committed itself to making chips for other companies in a bid to increase industry capacity back in March near the start of Gelsinger's tenure as CEO. As part of that ambition, Intel is investing $20 billion to build new factories in Arizona.
More recently, the WSJ reported that Intel was eyeing a purchase of chipmaker GlobalFoundries for $30 billion. GlobalFoundries is among the biggest specialist players in the chip industry. The company was spun out of Advanced Micro Devices in 2008. It still counts AMD as a key customer, making any potential purchase by Intel (a rival to AMD) tricky.
Attesting to the growth in the sector, Maxim Integrated Products, Inc. (NASDAQ:MXIM) recently reported net revenue of $720 million for its fourth quarter of fiscal 2021, ended June 26, 2021, an 8% increase from the $665 million revenue recorded in the prior quarter, and a 32% increase from the same quarter of last year.
"Maxim delivered record revenue in the June quarter, with sequential growth in all end markets, led by Industrial, Automotive, and Comms & Data Center. On the merger front, we are seeking final regulatory clearance for our combination with Analog Devices," said Tunc Doluca, President and Chief Executive Officer.
The reported fourth-quarter fiscal 2021 adjusted earnings of 91 cents per share ended up beating the Zacks Consensus Estimate by 5.81%. The bottom line increased 56.9% year over year and 11% on a sequential basis.
Revenues of $719.9 million outpaced the Zacks Consensus Estimate of $687.7 million. Also, the top line increased 32.1% year over year and 8.3% on a sequential basis.
Top-line growth was primarily driven by the company's strong performance across the automotive, industrial and consumer markets.
Micron Technology, Inc. (NASDAQ: MU), recently announced the availability of Crucial P5 Plus PCIe SSDs as an expansion of its award-winning NVMe solid-state drive (SSD) portfolio to offer high-performance internal Gen4 storage options to consumers. By leveraging Micron's first-to-market volume shipments of 176-layer NAND, Crucial P5 Plus SSDs enable lower power, higher speed, and denser storage solutions. Additionally, Micron's advanced 176L 3D TLC NAND and innovative controller technology yields up to 66% faster sequential write speeds and nearly double the sequential reads of prior generation Crucial SSDs3.
From the news: "With data intensive workloads on the rise, consumers increasingly demand high-performance storage solutions for their needs including engineering applications, video editing, content creation and gaming," said Teresa Kelley, vice president and general manager of Micron's Consumer Products Group. "By using our powerful, industry-leading 176-layer 3D NAND, coupled with the latest high-bandwidth storage interface, the P5 Plus Gen4 SSD makes lightning-fast computing storage accessible for a broad spectrum of consumers in the market."
From the news: With read speeds up to 6600MB/s, Crucial P5 Plus SSDs also enable up to 67% faster random read and 40% faster random write performance over prior Crucial Gen3 SSDs4. Ideal for a new PCIe Gen4 PC build or a PCIe Gen3 system upgrade, the P5 Plus is compatible with both and has been tested on Intel and AMD platforms including the latest 11th Generation Intel® CoreTM processors and AMD Ryzen 3000 PCIe 4.0 motherboards. Likewise, these new Crucial PCIe Gen4 SSDs are backward compatible for most Gen3 PC systems that support M.2 form factors.
From the news: The new high-performance Crucial P5 Plus PCIe Gen4 SSD rounds out Crucial's stellar internal and external SSD product offerings such as the MX500, BX500, P5, P2, X8 and X6. Additionally, all P5 Plus SSDs come with our Crucial Storage Executive management software for performance optimization, data security and firmware updates, as well as free cloning software to ensure easy installation right out of the box.
From the news: As Micron's global consumer brand, Crucial is uniquely able to connect millions of customers to the innovation and technology that Micron has been perfecting for more than four decades. For 25 years, online tools like the Crucial System Scanner have made it easy for customers such as content professionals, gamers, PC enthusiasts and DIY system builders to find compatible memory (DRAM) and storage (SSD) products for more than 175,000 desktops, laptops, and workstations. Crucial products are available on www.crucial.com and worldwide from leading retail and e-tail stores, commercial resellers and system integrators, enhancing system performance and user productivity on every continent.
Glenn O'Donnell, Vice President, Research Director of Forrester Research reminds us "Semiconductors have a powerful ripple effect on products in other markets. If it has a plug or a battery, it is probably full of chips. If the chip supply is tight, these other products suffer delays or even cancellations."
Demand is not going away anytime soon. Microchip and semiconductor producers have their work cut out for them. Who will win this race is anyone's guess.
About Investorideas.com - News that Inspires Big Investing Ideas
Investorideas.com publishes breaking stock news, third party stock research, guest posts and original articles and podcasts in leading stock sectors. Learn about investing in stocks and get investor ideas in cannabis, crypto, AI and IoT, mining, sports biotech, water, renewable energy, gaming and more. Investor Idea's original branded content includes podcasts and columns: Crypto Corner, Play by Play sports and stock news, Investor Ideas Potcasts Cannabis News and Stocks on the Move podcast, Cleantech and Climate Change, Exploring Mining, Betting on Gaming Stocks Podcast and the AI Eye Podcast.