SemiWEEK: COVID-19 Concerns shift from Supply-side to Demand-side. Forecasting in uncertain times; Stocks rocketed

1. Semiconductor WEEK: April 10, 2020An overview of results and conclusions from recent reports at VLSI Chip History Center The lady bug and the microchip … A children's story about microns and nanometers. What's ALD? A children's story …Did you know that the chip makers routinely make films one atom at a time? Bunny Suit History in Semiconductor ManufacturingIn 1968, standard clean room practices were lax The Chip Insider Strategy and Tactics: COVID-19 Concerns shift from Supply-side to Demand-side. Forecasting in uncertain times Semiconductor Stocks • Semiconductor Stock Index led up 11.1% by MaxLinear • Semiconductor Equipment Stock led up 14.5% by FormFactor • EDA Stock Index was led up 10.9% by Cadence • Electronics Materials Stock Index led up 13.8% by DuPont and Cabot Microelectronics • Hottest Stocks: MaxLinear, DuPont, ON Semiconductor, Amkor, Infineon, and Cabot Microelectronics. Chip Market Research Services Visibility is low and the seas are rough • Order activity for semiconductor equipment pulled out of the dive, jumping nearly two points to 58 degrees • Production and Capacity Plan Semiconductor Analytics Semi Market results from last week: Semiconductor sales appear to be moving into recession territory. Semiconductor Sales Nowcast: 1Q20/1Q19 Closed the quarter in the black • Semiconductor Weather1 Report: Chilly • IC Supply-Demand2 Metrics: Balanced • Electronics Price Trend: Rising Overall Semi Sales Status Trend: Peaked: Mar 18 Cold with Dark Clouds: Sep 18 Freezing: Nov 18 Frozen: Jan 19 Freezing: Mar 19 Cold: May 19 Cool: July 19 Temperate: Oct 19 Sunny: Nov 19 Warm: Dec 19 Flu Chills: Feb 28

2. The Chip Insider®'s Graphics File • Order activity for semiconductor equipment pulled out of the dive, jumping nearly two points to 58 degrees • Despite the improvement, visibility for chipmakers and equipment suppliers is limited due to ongoing supply chain issues and end-demand worries • While the supply chain issues will subside with the easing of lockdowns, the near-term and mid-term impact of the pandemic on the economy will be substantial, resulting in a sizable downside pressure for chip the industry in 2020 • The Chip Price Performance Index (CPPI) extended its decline This issue contains the latest forecast. Call us to access more details March 2020 Visibility is low and the seas are rough

4. The Chip Insider® Graphics Production and Capacity Plan: • Production is falling as industry braces for impact from the pandemic Production and Capacity Plan: chart gives rolling averages for semiconductor production, currently active capacity and current plus planned capacity in millions of square inches of silicon wafers.

5. Semiconductor Analytics Last Week in the Semiconductor Market: Semiconductor sales appear to be moving into recession territory based on March’s IC revenues over the last 3 weeks as a result of the impact of the Coronavirus. While similar in scale to the impact of the Sendai earthquake, COVID-19 is much more volatile. Semiconductor Sales Nowcast: 1Q20/1Q19 Closed the quarter in the black Semiconductor Weather1 Report: 62˚ F Chilly IC Supply-Demand2 Metrics: Balanced Electronics Pricing Trend: Rising Notebooks, Smartphones, and Consumer Electronics have a seasonal inversion driven by WAHE (Work-at-Home Economy) • W/W: Week-over-Week sequential growth W/Q: Week-over-Quarter W/Y: Week-over-Year Thank you for supporting us through this last issue of 2018. Semiconductor Analytics will return January . Overall Semi Sales Status Trend: Peaked: Mar 18 Cold with Dark Clouds: Sep 18 Freezing: Nov 18 Frozen: Jan 19 Freezing: Mar 19 Cold: May 19 Cool: July 19 Temperate: Oct 19 Sunny: Nov 19 Warm: Dec 19 Flu Chills: Feb 28 • 1: Measures Order Activity 2: Measures Pricing Power

6. 2020 Semiconductor Market Drivers Coronavirus has driven Integrated Circuit sales towards a recession: • Certainties: • Coronavirus Pandemic infected economies • Macroeconomic ‘V’acuum or ‘U’ – not ‘L’ • WAHE* • 7/10nm and 5/7nm demand ramps • Memory Price Elasticity • 5G: Smartphone, Auto, Industrial • Uncertainties: • Ability of Governments to defibrillate economy out of shelter-in-place • 2020 Elections in U.S. *Work-At-Home Economy

7. The Chip Insider®Strategy & Tactics Strategy and Tactics: COVID-19 Concerns shift from Supply-side to Demand-side. Forecasting in uncertain times Summaries: VLSI's Coronavirus Semiconductor Market Watch: Semiconductor sales slowed significantly last week, as logistics issues from COVID-19 slowed OEM shipment levels. Even though IC sales were down 11% Y/Y last week, the 8-week cumulative impact of COVID-19 on the semiconductor market since the WHO declared the emergency continued to attenuate… So far, the impact of COVID-19 has mostly been to lower units and raise IC prices. The cumulative distortion for unit shipments since week-0 is more than 20% below seasonal levels and prices are up well over 20%. Manufacturing Status: Most fabs … Concerns have shifted from supply-side issues like logistics to demand-side … the rest of the year is dependent on macroeconomic issues. The perennial ‘L’ versus ‘V’ shaped cycle arguments have returned with the V-shapers winning last week and the L-shapers dominating this week after U.S. unemployment jumped to a total 10M claims over the last two weeks… Comments, Questions & Answers: Moore’s Law Slowing? A refresh to the transistor production graph and how we count transistors? Risk vs Uncertainty: Defining the difference and how to forecast in the presence of each… Maxims Reloaded: Risk vs Uncertainty: Know which is the basis behind any decision that needs to be made. Misreading situations of risk versus uncertainty in decision making can result in bad decisions because the best method under one can be the worst under another. It’s how the world’s financial system almost collapsed between 2007 and 2008 …. Important ChipChirps™ Facts from the Far Side of Semiconductors … ChipChirps™ are short notifications from VLSI’s analysts to alert clients about breaking news and events. They are exclusively available on VLSI’s App for Android and iOS. “I've always been more interested in the future than in the past” — Grace Hopper Contact us to get the full report and more

8. semiStockWEEK:VLSI's Semiconductor Stock Indices rocketed this week along with the market. Semiconductors +11%, Equipment +14%, EDA +11%, Electronic Materials +14%.

9. Semiconductor Stocks: Weekly Growth and Forward P/E Ratios by Company VLSI’s Semiconductor Stock Index was led up 11.1% by MaxLinear, On Semiconductor, Amkor, and Infineon. IDM +13.0% Foundry & OSAT +9.4% Fabless & Fablite +11.9% AMD AMD Analog Devices ADI AmkorAMKR ASE ASX Broadcom AVGO IBMIBM Infineon IFNNY.PK Intel INTC JCET600584.SSKingpak Technology6238.TWO Micron Technology MU On Semiconductor ON Panasonic PC MagnaChip Semiconductor MX Maxim MXIM MaxLinear MXL MediaTek 2454.TW NVIDIA NVDAQualcomm QCOM Samsung Electronics 005930.KS Silicon Laboratories SLAB Skyworks SWKS SMIC SMI STMicroelectronics STM Texas Instruments TXN TSMC TSM UMC UMC Western Digital WDC Xilinx XLNX

10. Chip Equipment & Related Stocks:Weekly Growth and Forward P/E Ratios by Company VLSI’s Semiconductor Equipment Stock Index was led up 14.5% by FormFactor. WFE +14.6% Test +18.0% Assembly +12.6% Applied Materials AMAT Advantest ATEYY ASM International ASMI ASM Lithography ASML ASM Pacific 0522.HK BE Semiconductor BESIY.PK FormFactorFORM KLA KLAC Kulicke & Soffa KLIC Lam Research LRCX Onto Innovation ONTO Nikon 7731 Teradyne TER Tokyo Electron Limited 8035 Veeco VECO

11. Electronic Materials Stocks:Weekly Growth and Forward P/E Ratios by Company VLSI’s EDA Stock Index was led up 10.9% by Cadence. VLSI’s Electronics Materials Stock Index was led up 13.8% by DuPont and Cabot Microelectronics. BASF BASFY Cabot Microelectronics CCMPCadence CNDS DNP 7912 DuPont DD JSR 4185 Shin-Etsu 4063 SOITEC SOI.PA Synopsys SNPS Tokyo Ohka 4186