Semiconductor supplier Amkor Technology experienced strong Q2 demand in its communications and consumer “end markets,” driving 31% revenue growth year over year, said CEO Giel Rutten on a Monday investors call. Though global smartphone unit shipments are expected to decline in 2020, Amkor had first-half growth in its 4G products, plus “a steady ramp” of its 5G components, including its RF, front-end, modem, sensor and artificial intelligence products, he said. Computing grew 13% sequentially and year over year, exceeding expectations in “all applications,” including PCs and laptops, he said. “While the semiconductor supply chain has responded very well to the coronavirus challenges, we are still dealing with an environment of dynamic forecast changes as customers try to balance limited visibility with inventory levels."
Incompas’ show scheduled for Sept. 14-16 in Las Vegas will be virtual. “As much as we all had hoped to be able to meet in person this September … the well-being of our attendees and exhibitors takes precedence," said CEO Chip Pickering. “Given the uncertainty surrounding the coronavirus pandemic, we will be moving to an all-virtual 2020 INCOMPAS Show.” Earlier Tuesday, CTA did the same with CES 2021 (see 2007280034). Our news bulletin is here. (It's in front of the pay wall, like some other coronavirus coverage.)
Combined proposals Senate Republicans released Monday for the next major COVID-19 aid legislative package have few telecom and tech provisions. A proposal from Senate Appropriations Committee Chairman Richard Shelby, R-Ala., includes $1 billion for the FCC to implement the Secure and Trusted Communications Networks Act. HR-4998 provides funding to help U.S. communications providers remove Chinese equipment determined to threaten national security (see 2003040056). Shelby’s HR-4998 funding is the same as what the House Appropriations Committee allocated in its FY 2021 FCC funding bill (see 2007080064). The FCC earlier sought $2 billion to implement HR-4998 (see 2003230066). Shelby wants $175 million in emergency funding to CPB for “stabilization grants to maintain programming services and to preserve small and rural public" stations. Senate Judiciary Committee Chairman Lindsey Graham, R-S.C., filed the Restoring Critical Supply Chains and Intellectual Property Act with language from the Creating Helpful Incentives to Produce Semiconductors for America Act. HR-7178/S-3933 would allocate funding to match state and local incentives and direct the Commerce Department to establish a grant program. The bill’s text is included in both versions of the FY 2021 National Defense Authorization Act (HR-6395/S-4049). House Democrats had more tech and telecom language in their Health and Economic Recovery Omnibus Emergency Solutions Act (HR-6800), including broadband funding (see 2005130059).
MaxLinear’s connected home business generated 45% of Q2 revenue that grew 5% sequentially from Q1 to $65.2 million, said CEO Kishore Seendripu on a Thursday evening investor call. The company supplies broadband communications semiconductors. “We are benefiting from the demand for greater bandwidth at home in a transformative work-from-home environment that we believe is an emerging long-term trend,” said Seendripu. MaxLinear expects its $150 million all-cash buy of Intel’s home gateway business, announced April 6, will close this quarter, he said. The acquisition will more than double its total addressable market to $5 billion, he said. “The rapidly expanding work-from-home mandates due to COVID-19 are driving bandwidth upgrades, which will strongly benefit our core connected home business as well as our companion Intel connected home division acquisitions.”
Cloud and network infrastructure and PC capabilities were "vital in allowing businesses and people to continue to work, learn, stay connected and provide critical goods and services,” said Intel CEO Bob Swan on a Q2 investor call Thursday: Those trends helped Intel generate $19.7 billion revenue, exceeding forecasts by $1.2 billion. The company is making “significant progress” boosting its factory CPU capacity and improving its supply chain, he said. “We’re on track to return to more normal levels of PC inventory as we work through the second half of the year.” The downside is “yield” delays in its 7-nanometer chip process technology that's pushing commercialization schedules about “12 months behind our internal target,” said Swan. “We’ve root-caused the issue and believe there are no fundamental roadblocks, but we have also invested in contingency plans to hedge against further schedule uncertainty.” The stock closed down 16% Friday at $50.59. The “global problems we face are bigger than any one company can solve alone,” said Swan. It established 2030 “corporate responsibility goals” that call for a “collective response to revolutionize health and safety” and make technology “fully inclusive,” he said. The $50 million it committed to a “pandemic response technology initiative” typifies Intel’s “unique ability to partner and collectively solve critical problems.” The initiative will speed access to technology for patient care, said Intel. Chief Financial Officer George Davis said to expect "the weak economic environment will impact our commercial PC business, particularly the desktop.” The chipmaker expects the PC market to decline by high-single digits year over year in Q3, the CFO said.
It's not enough to restrict sales of chips to Huawei, and convince allies not to use the Chinese company in their 5G networks, experts said at a Senate Banking Committee Economic Policy Subcommittee hearing Wednesday. Rather, they testified, both 5G and export controls should be looked at more broadly. Martijn Rasser, senior fellow in the Center for a New American Security's Technology and National Security Program, said 5G networks will be essential to all the U.S. does in technology, so getting it right is urgent. Of talk of the U.S. buying an equity stake in Nokia or Ericsson, or creating its own "national champion" company in telecom equipment, that's "nibbling at the edges of the question," he said: Networking is an oligopoly, "which is why I’m advocating for a whole new approach." Rasser suggests the U.S. should convince allies to support open radio access networks. He said U.S. companies are strong in software, and this approach would make the industry more competitive. Tim Morrison, senior fellow at the Hudson Institute, said the way to win the economic competition with China is through a trade agreement similar to the Trans Pacific Partnership, leaving developing countries out except Mexico, and adding the U.K. and South Korea. Michigan State University Economics professor Lisa Cook, who agrees intellectual property theft is a problem in China, said it's ironic, because Chinese inventors are receiving more and more U.S. patents to protect their own innovations. "On the other hand, when I was in China," she said, the people she met told her because China "is a developing country, it deserves to have intellectual property rights abrogated." Rasser said export controls on semiconductors aren't as effective as putting them on chipmaking equipment. China's embassy didn't comment.
From Raytheon Technologies, Al Thompson joins Intel as vice president, running chipmaker's state and federal governmental relations ... Sinclair Chief Development Officer Scott Shapiro adds newly created post of chief strategy officer-sports ... Wells Fargo adds from Bank of America Ather Williams as head-strategy, digital and innovation.
The House voted 295-125 Tuesday to pass its FY 2021 National Defense Authorization Act (HR-6395) with anti-Ligado language (see 2007010070). The chamber approved a range of tech amendments Monday and Tuesday, including to ban federal employees from using the TikTok app on government-issued devices (see report, July 21). Other proposals added to the measure include amendments to implement recommendations from the Cyberspace Solarium Commission’s March report (see 2003110076) and ones on artificial intelligence and deepfakes. The Senate, meanwhile, voted 96-4 to add an amendment (see 2007020053) to its FY21 NDAA (S-4049) to attach the text of the Creating Helpful Incentives to Produce Semiconductors (Chips) for America Act (HR-7178/S-3933). Modified language from the measure was also included in HR-6395.
The House began considering its FY 2021 National Defense Authorization Act (HR-6395) Monday, with anti-Ligado language intact. The House Rules Committee didn’t allow floor consideration of three proposed amendments trying to advance and stop efforts to hinder Ligado’s L-band plan, despite support from committee member Rep. Michael Burgess, R-Texas (see 2007170059). The panel ultimately agreed to allow votes on several other tech and telecom amendments, including ones aimed at Chinese companies ByteDance and ZTE (see 2007150062).
The House Rules Committee considered proposed amendments to the chamber’s FY 2021 National Defense Authorization Act (HR-6395) Friday, including those trying to advance and stop efforts to hinder Ligado’s L-band plan. HR-6395 and Senate NDAA version S-4049 have anti-Ligado language (see 2007010070). Most telecom and tech-related amendments (see 2007150062) lawmakers proposed to attach to HR-6395 hadn’t come up by early evening.