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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (9806)	5/14/2020 11:18:59 PM
From: Kirk ©	Respond to of 26418

Thanks. Here are some charts showing the late day ramps for AMAT & LRCX after the TSMC news.... It is much easier to put up multiples on FB as I don't even have to save them... facebook.com

To: robert b furman who wrote (9806)	5/15/2020 9:29:34 AM
From: Kirk ©	Read Replies (2) \| Respond to of 26418

This article shows why the stocks are down this AM in the premarket, giving back some of yesterday's late gains: Escalating trade war to hit China foundry sector Cage Chao, Taipei; Jessie Shen, DIGITIMES Friday 15 May 2020 digitimes.com With the US set to impose new restrictions on exports to China, including exports of some critical semiconductor equipment, the ban that will become effective on June 29 is likely to have an adverse impact on China's foundry sector, according to sources at fabless chipmakers. China's top foundry chipmaker SMIC and memory startup Yangtze Memory Technology may see their capacity expansion schedules affected negatively by the upcoming export restrictions imposed by the US government, the sources indicated. China- and Taiwan-based foundries have been notified by their US fab tool suppliers of the new export restrictions, and have again reviewed their customer lists and the consequences resulted, the sources said. The latest US restrictions on exports of chipmaking equipment to China have become more complicated and rigorous, and increasingly uneasy to follow, the sources noted. The trade ban will have a relatively small impact on Taiwan's foundry industry, however. Nevertheless, if the US trade rows with China escalate further, TSMC and other Taiwan-based foundries will see the impact become significant, as China is a major market, the sources believe. On another front, China's push for self-sufficiency in ICs is bringing more businesses to SMIC and TSMC's Nanjing fab, as well as other China-based foundries, the sources observed. SMIC with manufacturing operations mostly in Shanghai and Beijing has seen orders for ASIC chips ramp up from China-based fabless clients since late 2019, while TSMC's 12nm and 16nm node manufacturing at its Nanjing plant has attracted orders from many China-based chip startups. SMIC has even landed 14nm chip orders from Huawei's HiSilicon, the sources continued, with shipments kicking off in the fourth quarter of 2019.