To: robert b furman who wrote (7712 ) 7/11/2024 12:39:19 PM From: robert b furman Read Replies (1) | Respond to Nice price action happening after Cohu has lagged of late.KLA Corp. is poised for growth as semiconductor manufacturing capacity increases domestically with the assistance of the CHIPS Act. The company is expected to benefit from the construction of regional AI factories, automotive ADAS systems, and AI-enabled smartphones and PCs. Investments in EUV lithography and advanced packaging will benefit KLA Corp. during the next cycle of investments for 3nm and 2nm chips. KLAC ) is nearing a cyclical upswing as customers are nearing their major capital allocations to semiconductor manufacturing equipment as they finalize the construction of their domestic foundries. The Semiconductor Industry Association, in partnership with Boston Consulting Group , projects that the domestic capacity for semiconductor manufacturing will grow by 3x from 2022 figures with the assistance of the CHIPS Act.Be sure to read my initial coverage of KLA Corp. here: KLA Corp. Will Benefit From CHIPS Act And The Infrastructure Supercycle According to IEEE, the US will produce 28% of the world’s advanced logic chips by 2032. Intel Corp. ( INTC ) is expected to invest $100b in new fabs with the goal of becoming the go-to foundry for advanced semiconductors. Though I’m hesitant to buy into Intel’s strategy as the firm is playing catch-up with its competitors in advanced chip design and production, Mr. Gelsinger remains optimistic in attaining business from competing chip designers. Intel will be building fabs in Arizona, Ohio, New Mexico, and Oregon as part of their $100b investment. One of the differentiators Mr. Gelsinger plans to bring to the table is providing EUV lithography as well as packaging to enable 2.5D and 3D chip tile-based designs .TSM ) is also investing a significant amount into US-based chip manufacturing, which will likely maintain their chip design relationships with firms like Nvidia ( NVDA ). TSMC will be building their fab in Arizona to manufacture 4nm chips. Management at TSMC mentioned in their q1’24 earnings call that the firm doubled their advanced packaging capacity from the previous year and is leveraging their OSAT partners to cover excess capacity demand. On the earnings call, management discussed that their customers are working with the chip manufacturer on N3 & N2 designs as power consumption remains a major challenge for AI factories.Micron Technology ( MU ) will be investing $50b through 2030 to construct fabs in Idaho and New York, which will likely bolster their DRAM & HBM production capacity. Management guided in their q3’24 earnings call that the Idaho fab will meaningfully ramp in 2027 with New York in 2028 or later. Management also mentioned that the firm will be enabling EUV in Japan to ramp the 1-gamma node.
