U.S. Semiconductor - PowerPoint PPT Presentation

u s semiconductor n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
U.S. Semiconductor PowerPoint Presentation
Download Presentation
U.S. Semiconductor

play fullscreen
1 / 120
U.S. Semiconductor
273 Views
Download Presentation
carter
Download Presentation

U.S. Semiconductor

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. U.S. Semiconductor INTEL, AMD, AMAT Jonathan Chao, Jesse Galpin, Kevin Sandhu, June Jiang

  2. Semiconductor Industry • Industry Background • Industry Profile • Industry Trend • Current Environment • Key Industry Ratios and Statistics

  3. Industry Background • From the early 1900s to the 1950s : vacu­um tubes • Invention of the transistor in 1948 • In 1958, integrated circuit (IC) • In 1971, Intel Corp.; Intel 4004 microprocessor, which ran at 108 kilohertz and served as a component in a calculator

  4. Industry Background • Ongoing technological advancement • Rising performance, falling prices • Moore’s Law describes pace of innovation • Inherent cyclicality • Huge capital investments • Marketing chips: going for the design win • Targeting the end user

  5. Types of Chips • Bipolar technology versus metal oxide technology • Discrete semiconductors • Analog semiconductors • Digital semiconductors • Microprocessors • Memory chips • Logic devices • Microperipherals • Microcontrollers • Standard cell logic • Optoelectronics. • Digital signal processors (DSPs)

  6. Types of Chips

  7. How Chips Are Made • Semiconductors are produced through a highly advanced and complex manufacturing process. • The two basic stages in chip production are the “front end” and the “back end.” • The front end involves materials preparation (cir­cuit design, photomask making, and manu­facture of raw wafers) and wafer processing (repeated cycles of deposition, etch, doping, planarization, and in-process testing). • The back end consists of packaging and final test operations. • http://www.intel.com/education/makingchips/index.htm

  8. Industry Profile

  9. Industry Profile Source: IC Insights.

  10. Industry Profile

  11. Industry Trend • Semiconductors drive economic productivity • Lower trend line growth (next slide) • Evolving corporate strategies • High-end microprocessors drive the market • DRAM market especially prone to boom-and-bust cycles • Automotive chips receive renewed focus • Outsourcing continues to grow

  12. Industry Trend

  13. Current Environment

  14. Current Environment

  15. Current Environment • Consumer products drive chip demand

  16. Current Environment • FASB accounting rule change to phase in

  17. Key Industry Ratios and Statistics • Global Sales Report.

  18. Key Industry Ratios and Statistics • Semiconductor equipment book-to-bill ratio

  19. Key Industry Ratios and Statistics • Wafer fabrication plant utilization rates

  20. Key Industry Ratios and Statistics • Institute for Supply Management (ISM) Report on Business Source: http://www.ism.ws/ISMReport/PMIndex.cfm

  21. Key Industry Ratios and Statistics • US index of leading economic indicators • Gross domestic product (GDP) • U.S. Consumer Price Index, CPI • U.S. Civilian Unemployment Rate • 3 Month U.S. Treasury Securities Yield

  22. INTEL NASDAQ: INTC

  23. Background Agenda • History • Current Events • Company Overview • Management • Business Structure • Operations • Products • Customers • Competitors • Financial Analysis

  24. History (1 of 3) • 1965 • Moore’s Law: “the number of transistors incorporated in a chip will approximately double every 24 months” • 1968 • Integrated Electronics (Intel) Corp. is founded by Gordon Moore and Robert Noyce. • 1971 • Intel goes public

  25. History (2 of 3)

  26. History (3 of 3) • 2004 & 2005 • New technology – Not Processors • Centrino • Dual-Core processors • 64-bit architecture • Hyper threading:

  27. Current Events • Intel will make new Apple CPU’s NOT Motorola • Intel court battles with AMD and MicroUnity • Intel and RIM collaborate on BlackBerry devices • Intel will team with Microsoft in support of new DVD format HD DVD by Toshiba not with Sony’s Blu-ray Disc • Agreement to Acquire Digital Broadcast Technology Assets, Expertise from Zarlink Semiconductor – expand digital home segment • Earnings (3rd Quarter) announced Oct. 18, 2005

  28. Company Overview (1 of 4) • Mission • Do a great job for our customers, employees, and stockholders by being the preeminent building block supplier to the worldwide digital economy

  29. Company Overview (2 of 4) • Values • Customer Orientation • Results orientation • Risk taking • Great Place to work • Quality • Discipline

  30. Company Overview (3 of 4) • Objectives • Extend silicon leadership and manufacturing capability • Deliver architectural innovation for platforms • Pursue worldwide opportunities

  31. Company Overview (4 of 4) • Strategy • Utilize core competencies to develop advanced products • Exercise control over value chain • Utilize “Intel inside” marketing campaign • Expand into faster growing complementary businesses • Invest in companies globally to further strategic objectives (Intel Capital program)

  32. Management (1 of 2) Joined Intel as Technology Development manager in 1974 Elected to BoD in 1992 Served as COO 1993-1997 Intel’s fourth president 1997 CEO in 1998 Chairman of the Board May 18, 2005 Joined Intel in 1974. Elected to BoD in 2002 Served as president and COO 2002-2005 CEO on May 18, 2005

  33. Management (2 of 2) Andy D. Bryant Executive Vice PresidentChief Financial and Enterprise Services Officer Joined Intel in 1981. CFO in 1998. Chief Financial and Enterprise Services Officer in 1999 Sean Maloney Executive Vice PresidentGeneral Manager, Mobility Group Joined Intel in 1982 1999 Senior VP 2001 Executive VP 2004 Co-manager of Mobility Group

  34. Past Intel Architecture Business Intel Communications Group Present Mobility Group Digital Home Group Digital Enterprise Group Digital Health Group Channel Products Group Business Structure (1 of 2)

  35. Business Structure (2 of 2) • Mobility Group: • XScale processors for handheld devices (PDA’s) & Pentium M (Centrino) for notebooks • Digital Home Group: • Develop processors for digital entertainment devices in the living room. • Digital Enterprise Group: • Develop processors for all corporate systems (PC’s to datasevers) • Digital Health Group: • New area of focus - Products such as motion-detecting sensors that could help senior citizens live more independently. • Channel Products Group: • develop specific products for local markets around the world.

  36. Operations • Manufacturing • Leader in semiconductor manufacturing and technology • Competitive advantage through economies of scale, • 11 fabrication facilities • 6 assembly and test facilities worldwide • 2003: $3.7 billion on capital investments Switch from 200mm wafers to 300mm wafers cuts price 30%. • Research and Development • 2005: $ 5.2 billion on R&D. (3.78b so far this year) • 7,000 researchers and scientists in labs around the world.

  37. Major Products • Microprocessors, chipsets, boards, flash memory, application processors used in handheld devices, cellular baseband chipsets. • Networking and communications products, optical components and network processing components, embedded control chips

  38. Major Customers • Distributors • Original Equipment Manufacturers (OEM) of computer systems and peripherals • PC users (retail)

  39. Major Competitors • AMD • ATI • Broadcom • IBM • Nvidia • Qualacom • Samsung • SIS • Spanshion • Sun Microsystems • TI • Transmeta • Via

  40. Financial Analysis

  41. Financial Analysis

  42. Financial Overview

  43. Financial Overview

  44. Financial Overview Regression Line Shows Sales Increasing at $573m

  45. Financial Overview Revenue (pink) v. EPS (blue)

  46. Financial Overview INTC over the past 365 Days

  47. Financial Overview INTC over the past 365 days 50day/200day moving averages - Suggesting a Sell

  48. Financial Overview INTC over the past 365 daysvs Semiconductor Industry over the past 365 days

  49. Financial Overview INTC over the past 365 daysvs AMD over the past 365 days

  50. Financial Overview $49.9 billion spend on 2.5B shares constant buyback program ($2.5B each ¼)