DOCSLIB.ORG

Lam Research, Applied Materials Set to Reap Iot Harvest

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Lam Research, Applied Materials Set to Reap Iot Harvest This document is being provided publicly in the following form. Please subscribe to FSInsight.com for more. Members Area Signal from Noise Lam Research, Applied Materials Set To Reap IoT Harve Signal from Noise Lam Research, Applied Materials Set To Reap IoT Harvest June 24, 2020 Vito J. Racanelli SENIOR EDITOR & MARKET INTELLIGENCE ANALYST – Internet of Things LT growth bodes well for semi-conductor equipment maker growth – LRCX and AMAT shares near highs but at relatively undemanding valuation multiples – As new IoT demand materializes—autos, healthcare—stocks could rise 25% or more In the previous Signal From Noise (June 17, Continued IoT Growth Good News for Nordic Semiconductor), I focused on the Internet of Things (IoT), which is likely to continue growing, limited only by what uses engineers dream up for semiconductor chips. Just about any area can see increased chips use: autos, healthcare, factory automation, HVAC systems, to name a few. The IOT is rich in possibilities for the world’s consumers and for companies that provide the architecture and backbone. The IoT means most objects can be connected via the internet and local networks, giving and receiving data, from personal medical devices to mobile phones to self- driving cars. If it’s electronic, there’s probably going to be a chip needed to power it or control it. In a normal year, some 80 million cars are sold, each with more and more computing power. Only yesterday, Mercedes Benz and NVIDIA said they plan to cooperate on a new in-vehicle computer system and AI infrastructure, to be introduced in 2024. The rollout of 5G communications is also big for chips, both the systems and the phones. An interesting analogy to the IoT is a gold rush. Who made money consistently? Not the miners, but those who supplied picks and shovels to them. If the IoT is like a gold rush, then chip equipment makers could be in a good place in the semiconductor industry. In that vein, both Lam Research (LRCX) and Applied Materials (AMAT) appear attractive investments for investors looking both for growth, and a bit of cyclicality, albeit long-term. Both are among the world’s few (four or five) companies of substantial size producing the complicated and high-tech equipment—the picks and shovels—needed by chip fabricators, such as Intel (INTC) and Samsung (5930.KS), to make things like memory or flash chips now found in many electronic devices. John DeGulis, a portfolio manager at Sound Shore Management, which owns shares of both LRCX and AMAT for clients, says the world is likely in the middle of a ten-year demand growth spurt for chips and by extension for the equipment that makes them. As the IoT develops, the long-term chip need should continue to be solid and steady. The wafer fabrication equipment market has grown 8% CAGR since 2013, according to LRCX. Source: Lam Research Secondly, and just as importantly, DeGulis points out how the chip cycle has changed— for the better for equipment makers. In the past, it was typified by a more severe boom/bust cycle because they were few end markets for chips. For example, in the 1980s chips went into PCs, the main end user at the time. When PC sales slowed, it was felt all the way up the chain to equipment makers. In the 1990s, mobile phones were added to the end market, widening the customer base and chip demand. Today, chips find uses in many other things, further expanding demand and also dampening the boom/bust cyclicality, he adds. Moreover, cell phones and PCs still need more and better chips. IoT should make end markets even more diverse, as chips are inserted into many products. Cycles, then, could be less severe. There’s a tremendous demand for data use and storage, which requires memory chips, microprocessors, standard chips or complex systems-on-a-chip (SoCs). For fabricators, and companies like LRCX and AMAT, it creates more stable end markets, DeGulis adds. Another point is that as we reach the limits of Moore’s Law, the technology of making chips has become more complicated, favoring the current players. Going from 2D to 3D chips requires a higher expertise and tends to limit the competition among what is eectively an oligopoly, with a handful of global providers of chipmaking equipment, says the fund manager. Additionally, each equipment maker tends to specialize. LAM, for example, has over 50% share in many of the verticals in which it competes, like memory chip equipment. I like the robust balance sheets of both companies, which have relatively little net long-term debt, and returns on equity of over 30% for AMAT and over 40% for LRCX. That’s pretty good for a capital-intensive industrial firm. What about the valuation now that stocks have recovered near to their all- time highs? LRCX trades at 18 times consensus 2021 EPS of $17.72, in line with its Source: Lam Research average PE. LRCX has said it could earn $30-$32 EPS in 2023-2024. If the market applies an undemanding 15 P/E market multiple to that, the price could eventually reach $480, higher than the current $306. Similarly, AMAT trades at less than 15 times consensus $4.27 EPS next year. DeGulis says it’s capable of $5 EPS and a 15 multiple could mean a $75 price, vs current $60. AMAT’s average P/E is 16. I think, given the IoT promise, one could argue they might get a multiple closer to their respective average P/Es. As new IoT demand materializes—autos, healthcare—I believe these stocks could rise 25% or more. According to Rob Sluymer, our head of technical analysis, in contrast to many cyclicals, AMAT and LRCX have already rallied above their June highs, extending up trends that began in March. Relative performance versus the SPX is also noteworthy, breaking out above their 2020 relative highs ahead of the price. Use near term pull backs to accumulate, he says. Where I could be wrong: Chip prices can fluctuate, sometime sharply. Sustained low prices hurt fab companies and, in turn, equipment makers. The spot price of the 8- gigabit DDR4 DRAM memory chip, for example, fell by two thirds in 2018-19. The semiconductor wafer fab equipment market declined 5.9% to $55.5 billion in 2019, as memory spending contracted from 2018 record levels, according to Gartner. Chip prices seem to have stabilized, but there could be a lagged coronavirus eect come fall and that could dent the share prices near term. Even so, short term demand has been surprisingly resistant, and both LRCX and AMAT have been solidly profitable for years. A worsening of US-China trade relations, given many chip fabricators’ investment in China, could hurt equipment makers, too. Longer term, China is likely to become a serious direct challenger both to the chip fabricators—which could hurt their margins— but also to the equipment makers themselves, though that’s probably at least five years o. Another risk is that both have concentrated customer bases. Bottom Line: The IoT should provide a steady and stable increase in future chip demand. That bodes well for LRCX and AMAT. Prior “Signals” Date Topic Subject / Ticker The Signal Nordic SemiconductorContinued IoT Growth Good News for Nordic 6/17/20 Stock (Nod.NO) Semiconductor Helmerich & Payne Stock Could Energize Your 6/10/20 Stock Helmerich & Payne (HP) Portfolio Van Hulzen Asset For Income Seekers, Why Covered Calls Top 6/3/20 Options Management Junk Bond ETFs Why JPMorgan Chase Belongs in Portfolios 5/27/20 Stock JP Morgan Chase (JPM) Post-COVID-19 Horizon Therapeutics Is Inexpensive; 2 Drugs 5/20/20 Stock Horizon (HZNP) Show Promise ‘Plain Vanilla’ Bank OZK Could Be Long Term 5/13/20 Stock Bank OZK (OZK) Opportunity Graham HoldingsPost COVID-19, Graham Holdings Could Return 5/6/20 Stock (GHC) to Growth Pacira To Benefit from Surgery Trend Away 4/29/20Stock Pacira (PCRX) from Opioids Avalara Stock Could Benefit from Catalysts 4/22/20Stock Avalara (AVLR) Boosting Amazon First Republic Stock Looks Cheap in Post 4/15/20 Stock First Republic (FRC) COVID-19 World If Galapagos Arthritis Drug Is Approved, Stock 4/8/20 Stock Galapagos (GLPG) Looks Cheap In Uncertain Markets, DaVita’s Stable Rev/EPS 4/1/20 Stock DaVita (DVA) Look Attractive In Roiled Market, Insider Activity Could Oer 3/25/20 Q&A InsiderInsights Directional Clues 3/18/20 Market US Stock Market Market Discounts Recession; GDP, EPS Growth Worries Mount COVID-19 Worry Overblown; Market Discounts 3/11/20 Market COVID-19 Recession iHeartMedia Stock Could Rise on Cost Cuts, 3/4/20 Stock iHeartMedia (IHRT) Digital Revenue Vito J. Racanelli SENIOR EDITOR & MARKET INTELLIGENCE ANALYST Disclosures (show).
Load more

Recommended publications
  • In the United States District Court for the District of Delaware
    IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE SEMCON TECH, LLC, Plaintiff, v. C.A. No. _________ APPLIED MATERIALS, INC., APPLIED MATERIALS SOUTH EAST ASIA PTE. JURY TRIAL DEMANDED LTD., APPLIED MATERIALS TAIWAN, LTD., APPLIED MATERIALS CHINA, APPLIED MATERIALS FRANCE S.A.R.L., AND APPLIED MATERIALS ITALIA SRL, Defendants. COMPLAINT FOR PATENT INFRINGEMENT This is an action for patent infringement arising under the Patent Laws of the United States of America, 35 U.S.C. § 1 et seq. in which Plaintiff Semcon Tech, LLC makes the following allegations against Defendants Applied Materials, Inc., Applied Materials South East Asia Pte. Ltd., Applied Materials Taiwan, Ltd., Applied Materials China, Applied Materials France S.A.R.L., and Applied Materials Italia Srl (collectively, “AMAT” or “Defendants”). PARTIES 1. Plaintiff Semcon Tech, LLC (“Semcon”) is a Delaware limited liability company. 2. On information and belief, Defendant Applied Materials, Inc. (“AMAT- US”) is a Delaware corporation with its principal place of business at 3050 Bowers Avenue, Santa Clara, California. On information and belief, AMAT can be served through its registered agent, The Corporation Trust Company, Corporation Trust Center, 1 1209 Orange Street, Wilmington, Delaware 19801. 3. On information and belief, Defendant Applied Materials South East Asia Pte. Ltd. (“AMAT-SG”) is a corporation organized under the laws of Singapore with its principal place of business at 8 Upper Changi Road North, Singapore 506906. 4. On information and belief, Defendant Applied Materials Taiwan, Ltd. (“AMAT-TW”) is a corporation organized under the laws of Taiwan with its principal place of business at No.
    [Show full text]
  • Sponsors Announced for Taiwan and China Semiconductor Industry Outlook 2003
    Taiwan and China Semiconductor Industry Outlook – 2003 September 15-16, 2003 San Jose, California www.taiwan-china-outlook.com FOR IMMEDIATE RELEASE September 10, 2003 San Jose, Calif. SPONSORS ANNOUNCED FOR TAIWAN AND CHINA SEMICONDUCTOR INDUSTRY OUTLOOK 2003 The US-Taiwan Business Council, in conjunction with the Fabless Semiconductor Association, today announced the sponsors for Taiwan and China Semiconductor Industry Outlook 2003. Platinum sponsor - Agilent Technologies Gold sponsors - Applied Materials, Intel, NVIDIA, Synopsys, Teradyne, and Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC) This event, focusing on the challenges and opportunities presented by the increasing economic integration of the United States, Taiwan and China semiconductor industries, will be held from September 15-16, 2003 in San Jose, Calif. Conference presentations, panels and Q&A sessions will cover economic integration; investment; export controls and dual-use technologies; intellectual property rights; business partnerships; market potential and acquiring market share. Keynote speeches will be given by Dr. Morris Chang, chairman, CEO and founder of TSMC, Kenneth Juster, under secretary of commerce for the Bureau of Industry and Security and Lisa Bronson, deputy under secretary of defense for Technology Security Policy & Counterproliferation. Additional speakers, updates to the conference agenda and registration information are available at www.taiwan-china-outlook.com. About the Conference Sponsors: Agilent Technologies (http://www.agilent.com)
    [Show full text]
  • United States District Court for the Western District of Texas Waco Division
    Case 6:20-cv-01211 Document 1 Filed 12/31/20 Page 1 of 83 UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS WACO DIVISION Ocean Semiconductor LLC, Civil Action No.: 6:20-cv-1211 Plaintiff JURY TRIAL DEMANDED v. PATENT CASE NVIDIA Corporation (“NVIDIA”), Defendant. COMPLAINT FOR PATENT INFRINGEMENT Plaintiff Ocean Semiconductor LLC (“Ocean Semiconductor” or “Plaintiff”) files this Complaint against NVIDIA Corporation (“NVIDIA” or “Defendant”), seeking damages and other relief for patent infringement, and alleges with knowledge to its own acts, and on information and belief as to other matters, as follows: NATURE OF THE ACTION 1. This is an action for patent infringement arising under the Patent Laws of the United States, 35 U.S.C. § 1 et seq. THE PARTIES 2. Plaintiff Ocean Semiconductor is a limited liability company organized and existing under the laws of the State of Delaware, and its registered agent for service of process in Delaware is Rita Carnevale, 717 N. Union Street, Wilmington, DE 19805. Case 6:20-cv-01211 Document 1 Filed 12/31/20 Page 2 of 83 3. On information and belief, Defendant NVIDIA is a corporation organized and existing under the laws of Delaware, with its principal place of business at 2701 San Tomas Expressway, Santa Clara, CA 95050. NVIDIA is registered with the State of Texas and may be served with process through its registered agent, Corporation Service Company d/b/a CSC- Lawyers Incorporating Service Company, 211 E. 7th St., Suite 620, Austin, TX 78701. On information and belief, NVIDIA has a regional office in this District, including at least at 11001 Lakeline Blvd., Building 2, Suite 100, Austin, TX 78717.
    [Show full text]
  • Lam Research Corporate Social Responsibility Report for 2015 Lam Research | Corporate Social Responsibility Report for 2015
    Lam Research Corporate Social Responsibility Report for 2015 Lam Research | Corporate Social Responsibility Report for 2015 Further information on the material topics prioritized in this About This Report report are found in the Company Overview section. Lam Research Corporation (Lam Research, Lam, or the company) has developed this Corporate Social Boundaries Responsibility (CSR) Report to provide an overview of the company’s facilities and operations relating to Data reported in this document are for Lam Research. This environmental, social, and economic performance. This information covers subsidiaries, except for a few places report covers calendar year 2015. where we are still harmonizing our global systems to incorporate all of our data worldwide. Other exceptions and limitations are noted throughout the report. Content Our report is informed by the Global Reporting Initiative Company Data (GRI) G4 Guidelines, which provide a globally relevant framework for a standardized approach to reporting Lam Research is headquartered in Fremont, California, environmental, social, and economic performance. We and maintains a network of facilities throughout Asia, have included a GRI G4 Guideline Index to show our Europe, and the United States to meet the needs of our alignment with GRI reporting elements and to document global customer base. Our research and development our progress at integrating sustainability into our business. (R&D) facilities are located in Fremont and San Jose, As we continue to refine our reporting process, we are California; Tualatin, Oregon; and Villach, Austria. We have working to further align our report with the GRI framework. manufacturing facilities in the U.S. (California and Oregon), Austria, and Korea.
    [Show full text]
  • Terell Johnson (323) 323-0646 [email protected] Unified Communication and Collaboration Engineer Linkedin.Com/In/Terelljayjohn Son
    8692 Falmouth Ave #3 Playa Del Rey, Ca 90293 Terell Johnson (323) 323-0646 [email protected] Unified Communication and Collaboration Engineer linkedin.com/in/terelljayjohn son EXPERIENCE SKILLS Video Engineer Snapchat, ​Venice, CA —IT Video Engineer Voice Engineer April 2017 - PRESENT IT Infrastructure Video Engineer and service owner responsible for Streaming and Content designing, deploying and managing all internal Video Conferencing, Live Delivery Streaming, Voice, Video and Collaboration technologies used globally by Collaboration Engineer Snap Inc. Placed, Looksery and Zen.ly..​F Enterprise Design Deployment Facebook, Menlo Park, CA—UC Engineer SEPT 2015 - APR 2017 Operations Engineer supporting Facebook's Global Video Conference Administration Infrastructure as apart of the AV/VC Team. Designed Global Dial plan and Cisco VCS worked cross functional with other Facebook Collaboration teams, Service Providers, VARs, and Vendors. Cisco TMS Cisco Call Manager Cisco Systems (Insight Global), ​San Jose, CA​ ​—UC Engineer Fuze FEB 2012 – SEP 2015 Zoom Cloud Conferencing Engineering Lead for the Advanced Cisco Experience Hangouts Meet Team supporting the Cisco Worldwide Sales Organization in rolling out WebEx Collaboration Meeting and TelePresence Cloud Conferencing Okta Solution. Architect and Partner Engineer for the rollout of and integration Teem of VBrick Content Management System. Jira Scrum master and site admin for creating group workflows for managing products, bugs, enhancements, and various types of team projects for Cisco IT, ACE, and Software Innovation Group. Infrastructure Cisco UCS Cisco Systems (Insight Global), ​San Jose, CA​ ​—Lead Video Analyst and QA Engineer VMWare FEB 2010 – OCT 2014 Lead QA Engineer and Service Manager for the ACE Endpoint Experience AWS Validation Team.
    [Show full text]
  • Still Evolving: 200Mm
    V10/Issue 1/2015 Growing Scope 2 Demand for 20 China: 32 of 200mm Applications 200mm Tools Investment Fever Drives Advances in MEMS Outstrips Supply Kicks IC Industry Process Technologies Into High Gear Solutions for Factory and Equipment Efficiency Still evolving: 200mm MANAGEMENT SPONSOR Cheryl Knepfler CONTENTS cheryl_knepfl[email protected] PUBLISHER Growing Scope Peggy Marcucci of 200mm Applications [email protected] Drives Advances in MEMS Process Technologies 2 EDITOR-IN-CHIEF Liz Baird [email protected] TECHNOLOGY ADVISOR Helen Armer [email protected] Advanced Service Collaboration— The Fab’s CONTRIBUTING EDITORS New Normal 7 Gary Dagastine David Lammers Silicon Labs Jill O’Nan Tackles IoT Challenges 12 DESIGN Jane Olson Graphic Design Trends in Subfab Energy Consumption and Emissions NANOCHIP is published by Control 16 Applied Materials, Inc. © Copyright Applied Materials, Inc., 2015 20 www.appliedmaterials.com Demand for 200mm Tools Outstrips Supply Nanochip Fab Solutions is now delivered in an environmentally friendly online version. 26 Printed copies are available upon request. Deploying Multivariate Analysis to Improve For a free subscription, or to Fab Productivity add colleagues to the mailing list, please send an email to [email protected] with the following information: 29 • Name Case Study: • Title Wafer Scrap Reduction in • Company a 300mm Logic Foundry • Business address China: • Business email* Investment Fever Kicks IC Industry *Sorry—no general accounts, e.g., Gmail, AOL, Yahoo Into High Gear 32 All trademarks so designated or PLUS: ABOUT THE COVER: otherwise indicated as product names 38: 10 in 10: Celebrating Just as the chambered nautilus or services are trademarks of Applied Materials, Inc.
    [Show full text]
  • 2021 Logic Master Class Speaker
    Mike Sullivan CVP, INVESTOR RELATIONS Michael Sullivan is corporate vice president and head of Investor Relations. His team is responsible for investor relations and marketing communications including media relations, product and technology communications, and industry events. Mr. Sullivan joined Applied in 2009 after working at Intel Corporation for 16 years. He was Intel’s primary interface to equity analysts and the company’s largest institutional shareholders in the U.S. and Europe. He also held corporate communications positions at the company’s U.S. and European offices, where he drove corporate and competitive initiatives, new microprocessor introductions, computing platform campaigns, and flash memory PR. Mr. Sullivan is past president of the Silicon Valley chapter of NIRI, the National Investor Relations Institute. He earned his MBA at Santa Clara University and his BA in Public Relations at San Jose State University. 1 | Applied Materials Confidential Chidi Chidambaram, Ph.D. VP, ENGINEERING Chidi Chidambaram leads the process technology and foundry engineering team at Qualcomm as Vice President Engineering. Qualcomm is a leader among the fab less industry in bringing leading edge semiconductor technologies to manufacturing - Qualcomm was the first company to ship large volume products in 10 nm technology in 2017. Chidi’s team is also responsible for RF devices based on finlet and SOI transistors. Earlier Chidi developed silicon technology at Texas Instruments and was instrumental in the first embedded SiGe implementation by semiconductor Industry. Chidi is recognized as a IEEE fellow for contribution to strain engineering and Design technology co-optimization (DTCO). Chidi’s 20+ year semiconductor career has evenly straddled research and development with over 60 each of refereed articles and patents.
    [Show full text]
  • LOGIC MASTER CLASS JUNE 16, 2021 Forward-Looking Statements and Other Information
    LOGIC MASTER CLASS JUNE 16, 2021 Forward-Looking Statements and Other Information Today’s presentations contain forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our investment and growth strategies, our development of new products and technologies, our business outlook for fiscal 2021 and beyond, the impact of the ongoing COVID-19 pandemic and responses thereto on our operations and financial results, strategic acquisitions and investments, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; the effects of regional or global health epidemics, including the severity and duration of the ongoing COVID-19 pandemic; global trade issues and changes in trade and export license policies, including the recent rules and interpretations promulgated by the U.S. Department of Commerce expanding export license requirements for certain products sold to certain entities in China; consumer demand for electronic products; the demand for semiconductors; customers’ technology and capacity requirements; the introduction
    [Show full text]
  • LAM RESEARCH CORPORATION (Name of Registrant As Specified in Its Charter)
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant ☑ Filed by a Party other than the Registrant ☐ Check the appropriate box: ☐ Preliminary Proxy Statement ☐ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) ☑ Definitive Proxy Statement ☐ Definitive Additional Materials ☐ Soliciting Material Pursuant to §240.14a-12 LAM RESEARCH CORPORATION (Name of Registrant as Specified In Its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): ☑ No fee required. ☐ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: ☐ Fee paid previously with preliminary materials. ☐ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
    [Show full text]
  • Lam Research Corporation Names Thierry Fried Vice President, Europe Regional Operations
    Lam Research Corporation Names Thierry Fried Vice President, Europe Regional Operations FREMONT, Calif.-Sept. 21, 2000-Lam Research Corporation (Nasdaq: LRCX) today announced the appointment of Thierry Fried as vice president, Europe Regional Operations. Fried will report directly to Steve Newberry, president and chief operating officer for Lam. Fried has 18 years of semiconductor equipment experience. He spent the first five years of his career in the area of etch process technology followed by 13 years of increasing responsibility in sales and service management roles. Fried joins Lam from Applied Materials, Inc. where he most recently held the position of general manager for STMicroelectronics worldwide and country manager for Applied Materials, S.A.R.L. "Thierry has an excellent track record of success as a sales and service executive in the European semiconductor industry," said Newberry. "Our European customers are very important to Lam and we are proud of the long-term strategic relationships we have there. Thierry's leadership, combined with his extensive relationships with our customers, further solidifies our commitment to provide world class service and support in this important region. I am confident that he will contribute significantly to our vision to be number one in customer trust," Newberry added. Fried has a Masters degree in Chemistry from the University Grenoble, France. Lam Research Corporation is a leading supplier of front-end wafer processing equipment and services to the worldwide semiconductor manufacturing industry. The company's common stock trades on the Nasdaq National Securities Market under the symbol LRCX. Lam's World Wide Web address is http://www.lamrc.com.
    [Show full text]
  • Portfolio of Investments
    PORTFOLIO OF INVESTMENTS Columbia Seligman Premium Technology Growth Fund, September 30, 2020 (Unaudited) (Percentages represent value of investments compared to net assets) Investments in securities Common Stocks 98.9% Common Stocks (continued) Issuer Shares Value ($) Issuer Shares Value ($) Communication Services 11.0% Information Technology 84.3% Diversified Telecommunication Services 0.5% Communications Equipment 3.3% AT&T, Inc. 52,600 1,499,626 Arista Networks, Inc.(a) 7,900 1,634,747 (a) Ooma, Inc. 20,387 266,050 Cisco Systems, Inc. 54,800 2,158,572 Total 1,765,676 CommScope Holding Co., Inc.(a) 141,900 1,277,100 Entertainment 1.7% F5 Networks, Inc.(a) 24,900 3,056,973 Activision Blizzard, Inc. 63,708 5,157,163 Lumentum Holdings, Inc.(a) 9,100 683,683 Sciplay Corp., Class A(a) 60,106 974,919 Plantronics, Inc. 131,536 1,557,386 Total 6,132,082 Telefonaktiebolaget LM Ericsson, ADR 124,800 1,359,072 Interactive Media & Services 6.6% Total 11,727,533 Alphabet, Inc., Class A(a) 7,991 11,711,610 IT Services 9.2% Alphabet, Inc., Class C(a) 6,479 9,521,538 Boa Vista Servicos SA(a) 181,700 469,465 Twitter, Inc.(a) 44,381 1,974,955 DXC Technology Co. 52,100 929,985 Total 23,208,103 Fidelity National Information Services, Inc. 33,800 4,975,698 (a) Media 1.9% Fiserv, Inc. 31,900 3,287,295 Discovery, Inc., Class A(a) 186,500 4,060,105 Genpact Ltd. 52,770 2,055,391 Fox Corp., Class A 88,300 2,457,389 Global Payments, Inc.
    [Show full text]
  • The Impact of China's Policies on Global Semiconductor
    Moore’s Law Under Attack: The Impact of China’s Policies on Global Semiconductor Innovation STEPHEN EZELL | FEBRUARY 2021 China’s mercantilist strategy to grab market share in the global semiconductor industry is fueling the rise of inferior innovators at the expense of superior firms in the United States and other market-led economies. That siphons away resources that would otherwise be invested in the virtuous cycle of cutting-edge R&D that has driven semiconductor innovation for decades. KEY TAKEAWAYS ▪ No industry has an innovation dynamic quite like the semiconductor industry, where “Moore’s Law” has held for decades: The number of transistors on a microchip doubles about every two years, producing twice the processing power at half the cost. ▪ The pattern persists because the semiconductor industry vies with biopharmaceuticals to be the world’s most R&D-intensive industry—a virtuous cycle that depends on one generation of innovation to finance investment in the next. ▪ To continue heavy investment in R&D and CapEx, semiconductor firms need access to large global markets where they can compete on fair terms to amortize and recoup their costs. When they face excess, non-market-based competition, innovation suffers. ▪ China’s state-directed strategy to vault into a leadership position in the semiconductor industry distorts the global market with massive subsidization, IP theft, state-financed foreign firm acquisitions, and other mercantilist practices. ▪ Inferior innovators thus have a leg up—and the global semiconductor innovation curve is bending downward. In fact, ITIF estimates there would be 5,100 more U.S. patents in the industry annually if not for China’s innovation mercantilist policies.
    [Show full text]