Top 5 Semiconductor Companies To Watch For 2015


LONDON — Despite falling 28 points on the day on Friday to 6,215, the FTSE 100 had its first positive week since it closed at 6,723 points on Friday, May 17 — over the week it gained 99 points from the previous week’s close of 6,116. Investors, it seems, have realized that the U.S. economy is actually likely to survive a cutting-back of the Federal Reserve’s quantitative easing policy after all.

After our previous look at the FTSE showed us only falls, this week we’ll be optimistic and look at just a few gains instead.


Vodafone (LSE: VOD  )
Vodafone gained 12 pence (6.4%) to end the week at 188 pence after the price followed the FTSE down and back up again over the past couple of weeks. But the price rebounded higher, partly after Deutsche Bank upgraded its recommendation and set a 217 pence target on the stock. Is that realistic? Well, with one of the best forecast dividends of the FTSE 100 of around 6%, and at a forward P/E of only 12, I wouldn’t bet against it.

Top 5 Semiconductor Companies To Watch For 2015: Advanced Semiconductor Engineering Inc (ASX)


Advanced Semiconductor Engineering, Inc. is principally engaged in the manufacture, assembly, processing, testing and distribution of integrated circuits (ICs). The Company provides semiconductor packaging and testing services, including plastic leaded chip carriers (PLCCs), quad flat packages (QFPs) and flip chip packaging technology, among others, which are applied in the manufacture of household electrical appliances, communication devices, automobile components, personal computers, set top boxes, servers, memory integrated circuits (ICs), mobile phones, digital cameras, game consoles, projectors, high definition (HD) televisions, wireless communication network products and power management ICs, among others. The Company operates its businesses primarily in Taiwan, Europe and the Americas. In August 2010, the Company acquired a 100% interest in EEMS Test Singapore.


The Company is focused on packaging and testing logic semiconductors. The Company offers its customers turnkey services, which consist of packaging, testing and direct shipment of semiconductors to end users designated by its customers. The Company’s global base of over 200 customers includes semiconductor companies across a range of end use applications, including Altera Corporation, ATI Technologies, Inc., Broadcom Corporation, Cambridge Silicon Radio Limited and Microsoft Corporation. During the year ended December 31, 2008, the Company’s packaging revenues accounted for 77.7% of its net revenues and its testing revenues accounted for 20.1% of its net revenues.


Packaging Services

The Company offers a range of package types to meet the requirements of its customers, with a focus on packaging solutions. Within its portfolio of package types, the Company focuses on the packaging of semiconductors. These include advanced leadframe-based package types, such as quad flat package, thin quad flat package, bump chip carrier and quad flat no -lead package, and package types based on substrates, such a! s flip-chip ball grid array (BGA) and other BGA types, as well as other packages, such as wafer-bumping products. Leadframe-based packages are packaged by connecting the die, using wire bonders, to the leadframe with gold wire. The Company’s leadframe-based packages include quad flat package (QFP)/ thin quad flat package (TQFP), quad flat no-lead package (QFN)/microchip carrier (MCC), advanced quad flat no-lead package (AQFN), bump chip carrier (BCC), small outline plastic package (SOP)/thin small outline plastic package (TSOP), small outline plastic j-bend package (SOJ), plastic leaded chip carrier (PLCC) and plastic dual in-line package (PDIP). Substrate-based packages employ the BGA design, which utilizes a substrate rather than a leadframe. It also assembles system-in-a-package products, which involve the integration of more than one chip into the same package. The Company’s substrate-based packages include Plastic BGA, Cavity Down BGA, Stacked-Die BGA, Flip-Chip BGA and land grid array (LGA).


The Company’s wafer-level packaging products include wafer level chip scale package (aCSP) and advanced wafer level package (aWLP). The Company offers module assembly services, which combine one or more packaged semiconductors with other components in an integrated module to enable functionality, typically using surface mount technology (SMT) machines and other machinery and equipment for system-level assembly. End use applications for modules include cellular phones, personal digital assistant (PDAs), wireless local area network (LAN) applications, bluetooth applications, camera modules, automotive applications and toys.


The Company provides module assembly services primarily at its facilities in Korea for radio frequency and power amplifier modules used in wireless communications and automotive applications. Interconnect materials connect the input/output on the semiconductor dies to the printed circuit board. Interc onnect materials include substrate, which is a multi-layer m! iniature ! printed circuit board. The Company produces substrates for use in its packaging operations.

Testing Services

The Company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, final testing of logic/mixed-signal/radio frequency (RF) and memory semiconductors and other test-related services. The Company provides front-end engineering testing services, including customized software development, electrical design validation, and reliability and failure analysis. The Company provides final testing services for a variety of memory products, such as static random access memory (SRAM), dynamic random access memory (DRAM), single-bit erasable programmable read-only memory semiconductors and flash memory semiconductors.


The Company provides a range of additional test-related services, including burn-in testing, module sip testing, dry pack, tape and reel, and electric interface board and mec hanical test tool design. The Company offers drop shipment services for shipment of semiconductors directly to end users designated by its customers.

Advisors’ Opinion:

  • [By Jeff Reeves]

    Next Page

    Best Stocks to Buy for Around $5: Advanced Semiconductor Engineering (ASX)

    Advanced Semiconductor Engineering (ASX) builds and distributes integrated circuits and other electronics. While that’s not as sexy as other chipmakers that play to mobile, it’s still a good business, considering the general demand for microchips in everything from cars to computers to TVs.

  • [By David Dittman]

    Crown Resorts is a buy all the way up to USD16.50 on the Australian Securities Exchange (ASX) using the symbol CWN and on the US over-the-counter (OTC) market using the symbol CWLDF.

  • [By Namitha Jagadeesh]

    The FTSE 100 Index (UKX) fell 1.31 points, less than 0.1 percent, to 6,679.77 at 10:12 a.m. in London, trimming an earlier decline of as much as 0.6 percent. The gauge has climbed 13 percent this year as central banks maintained stimulus measures to support the global economy. The broader FTSE All-Share Index (ASX) was also little changed today, while Ireland’s ISEQ Index retreated 0.3 percent.

  • [By Jeff Reeves]

    Advanced Semiconductor Engineering (ASX) builds and distributes integrated circuits and other electronics. It’s not as sexy as some mobile chipmakers, but thankfully it doesn’t have to be — ASX is simply capitalizing on the general demand for microchips in everything from cars to computers to TVs.

Top 5 Semiconductor Companies To Watch For 2015: NeoPhotonics Corp (NPTN)

NeoPhotonics Corporation, incorporated on October 31, 1996, is a designer and manufacturer of photonic integrated circuit (PIC)-based modules and subsystems for bandwidth-intensive, high-speed communications networks. The Company has a portfolio of over 300 products, including products that enable data transmission at 10 gigabytes per second, 40 gigabytes per second and 100 gigabytes per second, agility products, such as reconfigurable optical add/drop multiplexers (ROADMs) that allocate bandwidth to adjust for volatile traffic patterns, and access products that provide high-bandwidth connections to more devices and people over fixed and wireless networks. In October 2011, the Company acquired Santur Corporation. In June 2013, it announced first shipments of optical transceiver modules out of its new, high capacity factory in Dongguan, Guangdong Province, China.


The Company’s products are categorized in 34 product families. The Company sells its products t o the network equipment vendors globally, including ADVA AG Optical Networking Ltd., Alcatel-Lucent SA, Ciena Corporation (including its recent acquisition of Nortel’s Metro Ethernet Networks business), Cisco Systems, Inc., FiberHome Technologies Group, ECI Telecom Ltd., Telefonaktiebolaget LM Ericsson, Fujitsu Limited, Harmonic, Inc., Huawei Technologies Co., Ltd., Mitsubishi Electric Corporation, NEC Corporation, Nokia Siemens Networks B.V. and ZTE Corporation.


The Company competes with Finisar Corporation, JDS Uniphase Corporation, MRV Communications, Inc., NTT Electronics Corporation and Sumitomo Electric Device Innovations, Inc.

Advisors’ Opinion:

  • [By Anders Bylund]

    Close competitor NeoPhotonics (NYSE: NPTN  ) soared 15% higher. Larger rival JDS Uniphase (NASDAQ: JDSU  ) jumped 7.9% to become the fastest gainer on the S&P 500. If Ciena can beat its own expectations in selling Internet backbone equipment to a bevy of major telecoms, its chief rivals must eventually follow suit. JDS is only one month removed from its latest quarterly report, which sent shares diving 7% overnight (but all was forgiven a week later). NeoPhotonics also reported in early May, but didn’t make any waves then.

Top 5 Semiconductor Companies To Watch For 2015: Universal Display Corp (OLED)


Universal Display Corporation, incorporated on April, 24, 1985, is engaged in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel display, solid state lighting and other product applications. The Company’s primary business strategy is to develop and license its OLED technologies to product manufacturers for use in these applications. Its primary business is to develop and license its OLED technologies to manufacturers of products for display applications, such as cell phones, portable media devices, tablets, laptop computers and televisions, and specialty and general lighting products; and develop new OLED materials and sell the materials to those product manufacturers. The Company sells its OLED materials to customers for evaluation and use in commercial OLED products. As of December 31, 2012, the Company owns, exclusively license or have the sole right to sublicense more than 3,000 pate nts issued and pending worldwide. On July 23, 2012, the Company entered into a Patent Sale Agreement (the Agreement) with FUJIFILM. Under the Agreement, FUJIFILM sold more than 1,200 OLED related patents and patent applications.


Phosphorescent Organic Light Emitting Diode Technologies

Phosphorescent OLEDs utilize specialized materials and device structures that allow OLEDs to emit light through a process known as phosphorescence. Traditional fluorescent OLEDs emit light through an inherently less efficient process. Theory and experiment show that phosphorescent OLEDs exhibit device efficiencies up to four times higher than those exhibited by fluorescent OLEDs. Phosphorescence substantially reduces the power requirements of an OLED and is potentially useful in displays for hand-held devices, such as Smartphone’s, where battery power is often a limiting factor. Phosphorescence is also important for area displays such as televisions, where higher de vice efficiency and lower heat generation may enable longer ! product lifetimes and increased energy efficiency.


Additional Proprietary Organic Light Emitting Diode Technologies

Additional OLED Technologies include FOLED Flexible OLEDs, Thin-Film Encapsulation, UniversalP2OLED Printable Phosphorescent OLEDs, OVJP Organic Vapor Jet Printing, OVPD Organic Vapor Phase Deposition and TOLED Transparent OLEDs. The Company is working on a number of technologies required for the fabrication of OLEDs on flexible substrates. As of December 31, 2012, it was conducting research and development on FOLED technologies internally, under several of its United States government programs and in connection with the government-sponsored Flexible Display Center at Arizona State University (ASU). The Company announced its, patented encapsulation technology for the packaging of flexible OLEDs and other thin-film devices, as well as for use as a barrier film for plastic substrates. Its approach for manufacturing a small molecule OLED, including a PHOLED, is based on a vacuum thermal evaporation (VTE) process.


The Company has partnered with Aixtron AG, which is a manufacturer of metal-organic chemical vapor deposition equipment, to develop and qualify equipment for the fabrication of OLED displays utilizing the OVPD process. It has developed a technology for the fabrication of OLEDs that have transparent cathodes. TOLEDs use a transparent cathode and either a transparent, reflective or opaque metal anode.

Organic Light Emitting Diode Materials Supply Business

The Company supplies its proprietary UniversalPHOLED materials to display manufacturers and others. The Company qualifies its materials in OLED devices before shipment in order to ensure that they meet required specifications. During 2012, the Company continued supplying its proprietary UniversalPHOLED materials to SDC for use in its commercial AMOLED display products and for its development efforts. During 2012 , the Company also supplied its UniversalPHOLED materials to! LG Displ! ay for use in its commercial AMOLED display products, to Tohoku Pioneer for use in its commercial PMOLED display products, and Konica Minolta for its manufacture of commercial OLED lighting products. During 2012, the Company also supplied its proprietary OLED materials to these and various other product manufacturers for evaluation and for purposes of development, manufacturing qualification and product testing.


The Company competes with Eastman Kodak Company (Kodak), Cambridge Display Technology, Ltd. (CDT), Sumitomo Chemical Company (Sumitomo), Idemitsu Kosan Co., Ltd. (Idemitsu Kosan), Merck KGaA and BASF Corporation.

Advisors’ Opinion:

  • [By Jake L’Ecuyer]

    Equities Trading UP
    Universal Display (NASDAQ: OLED) shares shot up 14.68 percent to $28.52 after the company reported stronger-than-expected Q1 results.

  • [By Dan Caplinger]

    Stocks finished the week on the plus side, as the Dow hit a new high, and the broader market held its own against more bearish investors who are arguing more forcefully that the long bull market has to come to an end at some point. Several stocks helped to build some excitement for market participants, and Clean Energy Fuels (NASDAQ: CLNE  ) , Universal Display (NASDAQ: OLED  ) , and Nuverra Environmental Solutions (NYSE: NES  ) were among the best-performing stocks in the market Friday.

  • [By Peter Graham]

    The Q1 2014 earnings report for advanced materials stock GT Advanced Technologies Inc (NASDAQ: GTAT), a potential peer of stocks like Corning Incorporated (NYSE: GLW), UniPixel Inc (NASDAQ: UNXL) and Universal Display Corporation (NASDAQ: OLED), is due out after the market closes later today. Aside from the GT Advanced Technologies earnings report, it should be said that Corning Incorporated already reported earnings on Monday, April 28 while UniPixel Inc  and Universal Display Corporation are both scheduled to release earnings after the market closes on Thursday. All of these stocks are interesting because all supply advanced materials to consumer electronics, mobile device, solar and organic light emitting diode (OLED) or light emitting diode (LED) makers.

Top 5 Semiconductor Companies To Watch For 2015: Xilinx Inc (XLNX)


Xilinx, Inc. (Xilinx), incorporated on February 5, 1984, designs, develops and markets programmable platforms. These programmable platforms have a number of components, including integrated circuits (ICs) in the form of programmable logic devices (PLDs), including Extensible Processing Platforms (EPPs); software design tools to program the PLDs; targeted reference designs; printed circuit boards, and intellectual property (IP), which consists of Xilinx and various third-party verification and IP cores. In addition to its programmable platforms, Xilinx provides design services, customer training, field engineering and technical support. The Company’s PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs) that its customers program to perform logic functions, and EPPs. Xilinx’s products are offered to electronic equipment manufacturers in end markets, such as wired and wireless communications, industrial, scientific and medical, a erospace and defense, audio, video and broadcast, consumer, automotive and data processing. The Company sells its products globally through independent domestic and foreign distributors and through direct sales to original equipment manufacturers (OEMs) by a network of independent sales representative firms and by a direct sales management organization. In January 2011, the Company acquired AutoESL Design Technologies, Inc. In August 2012, the Company acquired embedded Linux solutions provider PetaLogix.


Product Families

The 7 series devices that comprise the Company’s 28-nanometer (nm) product families are fabricated on a high-K metal gate 28-nm process technology. These devices are based on an architecture, which enables design and IP portability and re-use across all families, as well as provides designers the ability to achieve the appropriate combination of I/O support, performance, feature quantities, packaging and power consumption to addr ess a range of applications. The 7 series devices consist of! three families: Virtex-7 FPGA, Kintex-7 FPGAs and Artix-7 FPGAs. The Zynq-7000 family is the family of Xilinx EPPs. The Virtex-6 FPGA family consists of 13 devices and is the sixth generation in the Virtex series of FPGAs.


Virtex-6 FPGAs are fabricated on a high-performance, 40-nm process technology. There are three Virtex-6 families: Virtex-6 LXT FPGAs, Virtex-6 SXT FPGAs and Virtex-6 HXT FPGAs. The Spartan-6 family is the PLD industry’s 45-nm high-volume FPGA family, consisting of 11 devices in two product families: Spartan-6 LX FPGAs and Spartan-6 LXT FPGAs. The Virtex-5 FPGA family consists of 26 devices in five product families: Virtex-5 LX FPGAs for logic-intensive designs, Virtex-5 LXT FPGAs for high-performance logic with serial connectivity, Virtex-5 SXT FPGAs for high-performance DSP with serial connectivity, Virtex-5 FXT FPGAs for embedded processing with serial connectivity and Virtex-5 TXT FPGAs for high-bandwidth serial connectivity. Prior gene ration Virtex families include Virtex-4, Virtex-II Pro, Virtex-II, Virtex-E and the original Virtex family. Spartan family FPGAs include 90-nm Spartan-3 FPGAs, the Spartan-3E family and the Spartan-3A family. Prior generation Spartan families include Spartan-IIE, Spartan-II, Spartan XL and the original Spartan family.


Design Platforms and Services

The Company offers three types of programmable platforms. The Base Platform is the delivery vehicle for all of its new silicon offerings used to develop and run customer-specific software applications and hardware designs. The Base Platform consists of FPGA silicon; Integrated Software Environment (ISE) Design Suite design environment; integration support of optional third-party synthesis, simulation, and signal integrity tools; reference designs; development boards and IP. The Domain-Specific Platform targets one of the three primary Xilinx FPGA user profiles: the embedded processing developer; the DSP developer; or the logic/connectivity developer. The Market-S! pecific P! latform enables software or hardware developers to build and run their specific application or solution. Built for specific markets, such as automotive, consumer, aerospace and defense, communications, audio, video and broadcast, industrial, or scientific and medical, the Market-Specific Platform integrates both the Base and Domain-Specific Platforms.


During April 2012, Xilinx introduced the Vivado Design Suite. Vivado supports Xilinx 7 series FPGAs and Zynq EPPs. Xilinx and various third parties offer hundreds of no charge and fee-bearing IP core licenses covering Ethernet, memory controllers Interlaken and PCIe interface, as well as domain-specific IP in the areas of embedded, DSP and connectivity, and market-specific IP cores. The Company also offers development kits, including hardware, design tools, IP and reference designs. Xilinx offers a range of configuration products, including one-time programmable and in-system programmable storage devices to config ure Xilinx FPGAs. These programmable read-only memory (PROM) products support all of the Company’s FPGA devices. Xilinx and certain third parties have developed and offer a ecosystem of IP, boards, tools, services and support through the Xilinx alliance program. Xilinx also works with these third parties to promote its programmable platforms through third-party tools, IP, software, boards and design services. Xilinx engineering services provide customers with engineering, ranging from hands-on training to full design creation and implementation.


The Company competes with Altera Corporation, Lattice Semiconductor Corporation and Microsemi Corporation.

Advisors’ Opinion:

  • [By Marc Bastow]

    Programmable devices and technologies designer Xilinx (XLNX) raised its quarterly dividend 11.5% to 29 cents per share, payable June 4 to shareholders of record as of May 14.
    XLNX Dividend Yield: 2.33%

  • [By Monica Gerson]

    Xilinx (NASDAQ: XLNX) dipped 3.03% to $46.10 after the company issued a weak current-quarter revenue outlook.

    Posted-In: PreMarket LosersNews Movers & Shakers Pre-Market Outlook Markets

Top 5 Semiconductor Companies To Watch For 2015: Rood Testhouse International NV (ROO)

Rood Testhouse International NV (RoodMicrotec) is a Netherlands-based company, operating an independent and certified test house and analysis lab for opto- and microelectronics. It is a supply chain management organization engaged in partial processes essential to reliable end-products. Its core services are managing the entire process from design idea all the way to supply to the end-user, including purchasing, logistics, warehousing/logistics; securing testability and manufacturability at an early stage in the chip design process. Its activities include supply chain amangement, test and end-of-line services, failure and technology analysis, test engineering, qualifications and reliability, as well as engineering/consulting/key account project management. It has six wholly owned subsidiaries: RoodMicrotec International B.V., RoodMicrotec Holding GmbH, RoodMicrotec Beteiligungs GmbH, RoodMicrotec Nordlingen GmbH + Co. KG, RoodMicrotec Dresden GmbH and RoodMicrotec Stuttgart G mbH. Advisors’ Opinion:

  • [By Alan Ellman]

    The day is Friday July 12, and the stock is LEAP Wireless International Inc. (LEAP), which is a takeover candidate by AT&T. In the late afternoon, the share price was near $8 per share, the July $9 call option was priced @ $0.10, and the August $9 call @ $0.40. Covered call writers could generate an initial profit (ROO) of 1% and 5%, respectively. The average daily option trading volume for this company is 1320 contracts over the last three months. It appeared to be a normal trading day until the last hour of trading when option volume went through the roof. By day’s end, 7139 contracts were traded, all but 350 were calls as traders were taking a bullish stance on this stock. I think you know what’s coming!