Today's move may come from the conflicting information on the capacity squeeze "relief". Most chip stocks with a "capacity play" are down.
However, there are always conflicting sides: the "have" and "have no". It is a nightmare for the hundreds fabless companies when capacity becomes tight, which the other side like to see. I think that's how the confusing news comes to the public.
The "relief" article admits that the capacity relief comes from the leftover of the last boom cycle. We actually saw few real capacity expansions in the past two years even though there are quite a few significant M&A activities, which do not increase actual capacity. Everyone knows that the "real" expansion will not lead to actual capacity increase for at least 1-2 years after it started.
Amkor has capacity in both foundry and packaging/testing. Actually, an healthy foundry industry is good for Amkor so it has enough wafers to cut, test, and assembly.
I would rather stick to the fundamental. Amkor is the indisputable leader in its business with cutting edge technology. Their MLF for Bluetooth, RF, uBGA, SOC, FC-CSP, and SiP products and other advanced high-margin products (63% of the total revenue) will eventually change the chip assemply/packaging/testing and related industries such as cellular phone, mobile, satellite, and high-bandwidth communications. AMKR beats the street's estimation Q after Q.
Amkor management executes !
Regarding the Anam purchase. I believe eventually there will be only one company -- Amkor. As far as how it will be implemented, I don't think it make much difference. |
