Manu Pillai

Really interesting to see this: how Europe is moving up. It is interest to contrast this qualitative survey with the #siliconcatalyst analysys that UK is sixth in Europe in funding value fir silicon investment. And I will put in a plug for our #UKTIN Forward Capabilities paper on recommendations for UK Semiconductor sector: https://lnkd.in/eNNAsCAz

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The Silicon Kingdom's Crisis: A Call for a Semiconductor Revolution As we witness the rise of TSMC's 'Silicon Kingdom', controlling 56% of the global foundry market and over 90% of cutting-edge processes below 5nm, the semiconductor industry faces a critical juncture. This dominance, coupled with Taiwan's geopolitical instability, poses significant risks to global tech innovation and security. While semiconductor demand soars, driven by AI and high-performance computing, our over-reliance on a single company in an unstable region threatens innovation and economic growth. The 2021 chip shortage was a stark reminder of this vulnerability. Samsung Electronics and Intel, once formidable competitors, now struggle to keep pace. Both face technical challenges and disappointed shareholders, with stock prices reflecting these difficulties. However, a game-changing development has emerged: Intel plans to spin out its foundry business. This move aligns perfectly with my proposed paradigm shift - a joint venture between Samsung Electronics and Intel Foundry's businesses. By combining Samsung's advanced process technology with Intel's design capabilities and newly independent foundry, they could create a powerful TSMC competitor. This venture would diversify production geographically, mitigate geopolitical risks, and provide a neutral alternative for customers. The venture could also become a collaboration platform across the tech ecosystem, potentially partnering with NVIDIA, Google, and Apple to strengthen its position further. Challenges lie ahead – from cultural integration to regulatory approvals. But these obstacles also present opportunities for innovation and synergy. The ball is now in the court of Samsung's Chairman Lee Jae-yong and Intel's CEO Pat Gelsinger. We urge these leaders to seize this moment and make the bold decisions necessary to reshape the semiconductor landscape. This isn't just about corporate success; it's about securing the future of global technology and innovation. The proposed Samsung-Intel joint venture could be the key to unlocking a new era in semiconductor production and ensuring a stable foundation for our AI-driven future. Read my in-depth analysis here: https://lnkd.in/gtFQHR9N What are your thoughts on this potential collaboration? How can we ensure a more stable and innovative semiconductor industry? #Semiconductors #TechInnovation #GlobalSupplyChain #AI #FutureOfTech

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The explosive growth of #AI in recent years has catalyzed a new wave of innovation, resulting in infrastructure and power constraints in technology hot spots like #SiliconValley and the Pacific Northwest - and allowing emergent markets, like #Reno, to rise. With its proximity to Silicon Valley and the addition of new fiber routes to the Pacific Northwest, Reno is taking center stage as the AI boom's emerging western hub. In EdgeCore Digital Infrastructure 's latest blog post, our team dives into the rise of Reno, fall of power constraints, importance of strong relationships, and how the market represents the future of the industry. Read more at the link in our comments. #datacenter #digitalinfrastructure

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The continued, consistent progress of Taiwan Semiconductor Manufacturing Company Limited's (TSM) U.S. production facilities really IS good news for national security and global economic stability. Of course, the vast majority of TSM's chips will still be made in Taiwan, but the ability of their U.S. facilities to achieve comparable production yields at the leading-edge is absolutely critical. Like many people, I'd love to see Intel step up to the plate and regain some of their former glory in this regard. However, years of poor manufacturing decision making has long since cost Intel their once best-in-breed status. I think their recent moves to put huge bets on their foundry business is taking the company in the right direction, but their success is not guaranteed. TSM building significant foundry capabilities in the U.S. is the next best thing.

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Moxion Power collapsed 💔What happened? This is a stark reminder of the challenges facing innovative hardware startups. $110M+ investments from Amazon and Microsoft and a very advanced product. Given the limited information available, it's difficult to pinpoint the exact cause, my guess would be as follows: 1. 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗰𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆: The product is too advanced (expensive) thus making it hard for the end user to see any price benefit versus a diesel generator rental. 2. 𝗥𝗲𝗹𝗶𝗮𝗻𝗰𝗲 𝗼𝗻 𝟯𝗿𝗱 𝗽𝗮𝗿𝘁𝗶𝗲𝘀: Moxion Power was engaging clients through numerous rental companies means – less control, less efficiency, not uniform customer experience. 3. 𝗛𝗶𝗴𝗵 𝗰𝗮𝘀𝗵 𝗯𝘂𝗿𝗻: a single-product company in its growing phase had 7 vice presidents and a full C-suite. 300+ employees and probably sizeable investments in the new production facilities. Could it be leaner? I would say yes, a lot leaner. It's a tragedy to see such a promising venture fail 😔😢 This case highlights the importance of balancing innovation with market realities, especially in capital-intensive industries. What are your thoughts on the factors contributing to Moxion Power's downfall? #energystorage #cleantech #startupfailures #mobileenergy #hybridsystems #bess

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East Meets West: Bridging the Semiconductor Culture Clash Silicon Desert meets Silicon Island. The semiconductor industry is at a fascinating crossroads between Taiwan's meticulous precision and America's bold innovation. But here's the twist - it's not just about chips and wafers; it's about people. 1. **Embrace the Middle Ground** Start with understanding. Taiwanese work culture prides itself on hierarchy and collective success, while Americans champion individualism and flexibility. Companies thriving in this global arena find a middle ground, creating an environment where both cultures feel respected. 2. **Language is More Than Words** It's not just about translating Mandarin to English or vice versa. It's about understanding the nuance behind the words. Implementing language and cultural sensitivity training can bridge communication gaps, fostering a more inclusive workspace. 3. **Flexibility in Adaptation** What works in Hsinchu might not fly in Phoenix. Successful companies adapt their management practices to fit the cultural context of their teams, not the other way around. This might mean more autonomy for U.S. teams and a structured approach for teams in Taiwan. 4. **Celebrate the Differences** Instead of focusing on the divide, successful companies highlight the strengths each culture brings to the table. Taiwanese precision and dedication coupled with American creativity and problem-solving can lead to groundbreaking innovations. 5. **Create Cross-Cultural Teams** Encourage collaboration by forming teams with members from both cultures. This not only enhances product development but also builds a bridge of understanding and respect among team members. The fusion of Taiwanese diligence and American innovation can create an unstoppable force in the semiconductor industry. It starts with us - recognizing, respecting, and celebrating our differences. Interested in diving deeper into creating a unified global culture in your organization? Let's start a conversation below. Share your experiences and strategies for bridging the cultural divide. As always, my firm, Intermestic Parterns, has

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ARM is planning to spin off a division focused on AI. This strategic move could allow ARM (Already dominant in the AI market especially on the edge) to leverage its corporate valuation of Arm cores in the AI segment. Interestingly, the hardware design blocks used in the development of AI chips are the same as those used in microcontrollers and microprocessors, but optimized for AI, especially on the edge. Will other companies with significant revenue from AI applications follow suit and spin off a division dedicated to AI? hashtag #ARM hashtag #AI hashtag #semiconductor

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Here is my investment thesis for ZTEST Electronics (ZTE.CN / ZTSTF.OTC) h/t Dave Barnett (microcapclub.com) ZTEST (through its wholly-owned subsidiary Permatech) is a tiny, printed circuit board (PCB) manufacturer that is now growing significantly—H1 2024 revenues were 88% higher than H1 2023 revenues. In Dec 2022, then President John Perreault retired and was replaced by Suren Jeyanayagam, who has been with the company over 30 years. Whereas Perreault did not seek to grow the business, Jeyanayagam has a vision to grow the business. Jeyanayagam is directly involved in the sales process, working with the company’s one other salesperson. The company currently has a strong backlog of orders, which they expect to continue. Jeyanayagam has stated that the most recent record quarter is repeatable in terms of revenue and net income. More and more customers are looking for domestic manufacturers rather than looking overseas. Furthermore, the company has recently ordered new equipment, which was installed in May of this year (2024). This equipment doubles the number of production lines the company has from two to four. And ultimately this will more than double production capacity. Also, the company is now expanding into the United States and has a significant customer there.  This customer is likely to do large repeat orders.  Large orders have higher gross margins due to bulk inventory orders and economies of scale. Finally, the company has a 25.3% ownership stake in Conversance, which is a private AI and Blockchain company developing a secure marketplace platform for the cannabis industry. Conversance is expected to begin producing revenues in the second half of 2024. Although ZTEST’s most recent quarter—in which they earned $0.011315 per share—is their best so far, the company has a strong backlog, expanded manufacturing capacity, and a leader (Jeyanayagam) very focused on growth. Metrics of cheapness: ·        EV/EBITDA = 2.52 ·        P/E = 4.49 ·        P/B = 4.68 ·        P/CF = 3.00 ·        P/S = 0.69 The market cap is $7.08 million. Cash is $732k while debt is $153k. The Piotroski F_Score is 7, which is good. Insider ownership is 36.7%, which is excellent. ROE is 76.5%, which is superb and likely sustainable. Intrinsic value scenarios: ·        Low case: If there’s a bear market or a recession, the stock could decline. This would be a buying opportunity. ·        Mid case: Annualizing the last quarter’s result and applying a 10x EV/Net Income multiple yields a valuation of $0.4526 per share, which is over 120% higher than today’s $0.2035 per share stock price. ·        High case: It’s likely that ZTEST can achieve net income above their last record quarter. Annual earnings may reach $0.10 per share. Applying a 10x EV/Net Income multiple gives a valuation of $1.00, which is over 390% higher than today’s $0.2035. This still does not count any value from the company’s 25.3% ownership of Conversance.

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Watch how #OpenUSD and #IoT data can be used for #digitaltwins.

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