From MTSI’s recent quarterly earnings call transcript:
So in summary, standing in stark contrast for the cyclical challenges that we have to navigate during the past year, the tide seems to have turned. Near-term demand has firmed up, and we believe it's strengthening across many end markets and customers. With the recent award of 5G metro and provincial deployments in Nokia Shanghai Bell and others, the last remaining pocket of the downturn caused by the China government transition looks to soon be behind us. While the latest developments with ZTE and Huawei create new uncertainties, it's important to note that MACOM supplies technology and products that are not readily replicated by anyone anywhere, including China. Chinese carriers and OEMs view MACOM quite favorably, having an essential portfolio of enabling products and technologies for their 5G network buildouts. While we're hopeful that these international trade issues will be resolved constructively, we'll remain cautious in managing expectations.
At a higher level, the future looks very bright for MACOM. The industry is entering the next phase of infrastructure spending globally, driven by 5G telecom, continued strong investment by cloud service providers, and now, even a surge in defense spending and industrial capital investment. We spent the last few years developing a portfolio of disruptive products and technologies to service these targeted areas of secular growth. Major customers and market leaders have now validated our products and are actively sponsoring MACOM as we ramp into high-volume production. Many of these products use highly specialized proprietary materials manufacturing processes, which take time to perfect, yet provide strong barriers to entry once it ramps. Scaling these into high-volume production brings its own set of challenges, very different than most other parts of the semiconductor industry, which is commoditized to packages and processes. Based on our progress to date, we're confident in our ability to bring these solutions to high-volume production over the coming quarters.
https://finance.yahoo.com/news/edited-transcript-mtsi-earnings-conference-125122813.html |
