Chip Stocks Slump as Industry Eyes Vietnam

[Viet]

Story Highlights
The chip industry is looking to Vietnam for its future.

The Vietnam War lasted two decades, though the United States was only in on half of it. Even today, it’s a divisive subject. But there’s a whole new part of Vietnam that’s catching attention these days, and that’s its potential as a chip maker. Several companies have plans to do something in Vietnam, ranging from major household names like Microsoft () and Nvidia () to somewhat lesser names like Marvell (), Amkor () and Synopsys (). Nevertheless, slumped at the time of writing.

Microsoft, for example, plans to connect with Vietnam’s Trusting Social to build a generative AI solution in the region. Nvidia, meanwhile, is teaming up with a coalition of Vietnamese firms to also make some new artificial intelligence moves, this time with a cloud focus.

Amkor plans a new factory for chips, Synopsys has a “design and incubation center” planned, and even Marvell showed up for the Vietnam-U.S. Innovation and Investment Summit. It’s bringing a whole new spirit to the tech sector, particularly for chip stocks.

Microsoft was the only chip stock to gain ground out of those listed today, even if the gains were fractional. It’s one of four Strong Buys on the list, and its $390.81 average price target gives it the second-lowest upside potential on the list at 16.17%. Meanwhile, the only Moderate Buy on the list, Amkor, offers the strongest upside potential of 63.71% with an average price target of $36.

Chip Stocks Slump as Industry Eyes Vietnam - TipRanks.com

The Vietnam War lasted two decades, though the United States was only in on half of it. Even today, it’s a divisive subject. But there’s a whole new part of <di...

www.tipranks.com

 

[huanghong]

I don’t quite understand the significance of opening a chip manufacturing plant in Vietnam. Currently, chip manufacturers are in a dilemma of oversupply, especially when the Chinese market, which accounts for more than 40% of the global chip market, is increasingly reducing imports and relying on self-production.
Maybe this is why chip stocks are plummeting? Because new manufacturers will increase the oversupply trend?

China's rising production and falling imports of chips indicate increasing self-reliance

Amid the US's efforts to contain China's semiconductor ambitions, China has seen its production of integrated circuits begin to recover, implying both the stabilized Chinese economy as well as the chip manufacturing industry that is eager to decouple from the US-controlled supply chain.

www.digitimes.com

Layoffs at Micron roughly double, total workforce reduction now 15%

Micron increased plans to reduce its global workforce by 10% to 15% - about 2/3 of which will be layoffs.

www.boisestatepublicradio.org

Intel layoffs 2023: Targeting $10B in annual savings - SiliconANGLE

Intel is reportedly planning significant workforce reductions, targeting $10B in annual savings by 2026. Intel layoffs 2023 have already begun.

siliconangle.com

Qualcomm prepares for more layoffs as smartphone sales drop - Times of India

Qualcomm has reported a 25% decrease in sales of mobile chips in Q3 2023 due to the weaker global economy and slow growth in China that has led to low

timesofindia.indiatimes.com

 

[Viet]

I don’t quite understand the significance of opening a chip manufacturing plant in Vietnam. Currently, chip manufacturers are in a dilemma of oversupply, especially when the Chinese market, which accounts for more than 40% of the global chip market, is increasingly reducing imports and relying on self-production.
Maybe this is why chip stocks are plummeting? Because new manufacturers will increase the oversupply trend?

China's rising production and falling imports of chips indicate increasing self-reliance

Amid the US's efforts to contain China's semiconductor ambitions, China has seen its production of integrated circuits begin to recover, implying both the stabilized Chinese economy as well as the chip manufacturing industry that is eager to decouple from the US-controlled supply chain.

www.digitimes.com

Layoffs at Micron roughly double, total workforce reduction now 15%

Micron increased plans to reduce its global workforce by 10% to 15% - about 2/3 of which will be layoffs.

www.boisestatepublicradio.org

Intel layoffs 2023: Targeting $10B in annual savings - SiliconANGLE

Intel is reportedly planning significant workforce reductions, targeting $10B in annual savings by 2026. Intel layoffs 2023 have already begun.

siliconangle.com

Qualcomm prepares for more layoffs as smartphone sales drop - Times of India

Qualcomm has reported a 25% decrease in sales of mobile chips in Q3 2023 due to the weaker global economy and slow growth in China that has led to low

timesofindia.indiatimes.com

That’s temporary, the up and down of the market. If it comes to a war of Taiwan, then the world needs alternative. Vietnam can supply the market, that’s the logic. Without alternative Ccp will blackmail the West.

Look how Putin blackmails the EU with gas delivery then it’s easy to understand.

 

[huanghong]

That’s temporary, the up and down of the market. If it comes to a war of Taiwan, then the world needs alternative. Vietnam can supply the market, that’s the logic. Without alternative Ccp will blackmail the West.

Look how Putin blackmails the EU with gas delivery then it’s easy to understand.

However, Taiwan has already built a chip manufacturing plant in the United States. Why does it need to worry about Chinese blackmail?
And Vietnam even needs China to provide it with industrial electricity.

 

[Viet]

However, Taiwan has already built a chip manufacturing plant in the United States. Why does it need to worry about Chinese blackmail?
And Vietnam even needs China to provide it with industrial electricity.

Why worry? Because Ccp is not trustworthy. Half of TW exports are semiconductor and electronics. The Tsmc plant will provide just a fraction of semiconductor what needed. What’s about electronics? The West is very concerned. The effect will be more devastating than Russia invasion of Ukraine.

 

[huanghong]

Why worry? Because Ccp is not trustworthy. Half of TW exports are semiconductor and electronics. The Tsmc plant will provide just a fraction of semiconductor what needed. What’s about electronics? The West is very concerned. The effect will be more devastating than Russia invasion of Ukraine.

So placing manufacturing plants in Vietnam is a strange approach. It is obviously easier to attack manufacturing plants in Vietnam to cut off the supply of chips than to attack Taiwan.

 

[Viet]

So placing manufacturing plants in Vietnam is a strange approach. It is obviously easier to attack manufacturing plants in Vietnam to cut off the supply of chips than to attack Taiwan.

Please don’t make joke. We remain neutral in any confrontations be between Russia and Ukraine, US and China. We will award a medal to the winner.