Caution prevails as storm clouds continue to gather. Order activity for semiconductor equipment continued to trend lower, slipping to 57 degrees. Although the rate decline in order activity has moderated in the last two weeks the level of uncertainty among chipmakers and equipment suppliers is high.

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Chip Market Research Services
Caution prevails as storm clouds continue to gather
• Order activity for semiconductor equipment continued to trend
lower, slipping to 57 degrees
• IC Inventory Levels
Semiconductor Analytics
Semi Market results from last week:
Semiconductor sales slowed significantly last
week
Semiconductor Sales Nowcast: 1Q20/1Q19
Slipped to +3%
– Semiconductor Weather1 Report:
Warmed from Cold to Chilly
– IC Supply-Demand2 Metrics:
Saturated
– Electronics Price Trend: Rising
Overall Semi Sales Status Trend:
Peaked: Mar 18 Cold with Dark Clouds: Sep 18 Freezing: Nov 18 Frozen: Jan 19
Freezing: Mar 19 Cold: May 19 Cool: July 19 Temperate: Oct 19 Sunny: Nov 19
Warm: Dec 19 Flu Chills: Feb 28
Chip History Center
People: Robert N. Noyce, Intel’s first CEO. Some links to
learn about him.
The Chip Insider
Strategy and Tactics: The bright & dark sides of the
Coronavirus.
Semiconductor Stocks
• VLSI’s Semiconductor Stock Indices returned to
negative territory
– March jobs report missed expectations
• Semiconductor Stock Index gave back 1.6%
– Despite claiming five of the top six stocks
• Semiconductor Equipment Stock plunged 6.7%
– All companies finished in the negative
• EDA Stock Index was led up 1.4% by Cadence
• Electronics Materials Stock Index fell 5.3%
– SOITEC came out on top
• Hottest Stocks: MagnaChip Semiconductor, Xilinx,
SOITEC, Kingpak Technology, Intel, and Max Linear.
Semiconductor WEEK: April 3, 2020
An overview of results and conclusions from recent reports at VLSI

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The Chip Insider®'s Graphics File
March 2020
Caution prevails as storm clouds continue to
gather
This issue contains the latest forecast.
Call us to access more details
• Order activity for semiconductor equipment
continued to trend lower, slipping to 57
degrees
• Although the rate decline in order activity has
moderated in the last two weeks the level of
uncertainty among chipmakers and equipment
suppliers is high
• Equipment suppliers have not seen a
significant reduction in demand yet; however,
tool delivery in some areas has been
challenging due to ongoing lockdown
• Chipmakers’ visibility in the near term is fairly
limited
• The Chip Price Performance Index (CPPI)
tumbled

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Mild COVID-19 impact--VLSI Forecast
Forecast as of March 2020: 2019 2020 2021
Semi Equipment ($B): 76.6$ 72.8$ 85.2$
Sequential Change -8.3% -5.1% 17.2%
Capacity Utilization: 84.6% 82.1% 90.3%
ICs ($B): 352.3$ 337.4$ 418.0$
Sequential Change -13.4% -4.2% 23.9%
IC Units (BU): 299.4 284.8 342.1
Sequential Change -6.0% -4.9% 20.1%
Electronics ($B) : 2,122$ 2,020$ 2,362$
Sequential Change -2.0% -4.8% 16.9%
Mild COVID-19, but delayed recovery in 4Q20.
Forecast as of March 2020: 2019 2020 2021
Semi Equipment ($B): 76.6$ 61.9$ 85.2$
Sequential Change -8.3% -19.2% 37.7%
ICs ($B): 352.3$ 303.4$ 418.0$
Sequential Change -13.4% -13.9% 37.8%
IC Units (BU): 299.4 255.1 342.1
Sequential Change -6.0% -14.8% 34.1%
Electronics ($B) : 2,122$ 1,885$ 2,362$
Sequential Change -2.0% -11.2% 25.3%
Severe COVID-19 impact, recovery 1Q21
Forecast as of March 2020: 2019 2020 2021
Semi Equipment ($B): 76.6$ 58.4$ 85.2$
Sequential Change -8.3% -23.8% 46.1%
ICs ($B): 352.3$ 282.7$ 418.0$
Sequential Change -13.4% -19.8% 47.9%
IC Units (BU): 299.4 238.3 342.1
Sequential Change -6.0% -20.4% 43.5%
Electronics ($B) : 2,122$ 1,741$ 2,362$
Sequential Change -2.0% -18.0% 35.7%

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The Chip Insider® Graphics
I:B ratio is soaring as
sales are falling faster
than inventories
IC Inventory Levels: chart gives rolling averages for semiconductor
integrated circuit inventories held at OEMs, in Die Banks, and the total
Inventory-to-Billing Ratio

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Semiconductor Analytics
Last Week in the Semiconductor Market:
Overall Semi Sales Status Trend:
Peaked: Mar 18 Cold with Dark Clouds: Sep 18 Freezing: Nov 18 Frozen: Jan 19
Freezing: Mar 19 Cold: May 19 Cool: July 19 Temperate: Oct 19 Sunny: Nov 19
Warm: Dec 19 Flu Chills: Feb 28
W/W:Week-over-WeeksequentialgrowthW/Q:Week-over-QuarterW/Y:Week-over-Year
1: Measures Order Activity 2: Measures Pricing Power
5
Thank you for supporting us through this last issue
of 2018. Semiconductor Analytics will return
January .
Semiconductor sales slowed significantly last week
as logistics issues from COVID-19 slowed OEM
shipment levels. It also re-infected the 1Q20/1Q19
Semiconductor Nowcast. DRAM, NAND, Logic,
Auto, Analog & Power IC sales were all below 2019.
Semiconductor Sales Nowcast: 1Q20/1Q19
Slipped to +3%
Semiconductor Weather1 Report: 61˚ F
Warmed from Cold to Chilly
IC Supply-Demand2 Metrics: Saturated
Electronics Pricing Trend: Rising
Notebooks, Smartphones, and Consumer
Electronics have a seasonal inversion driven by
WAHE (Work-at-Home Economy)

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2020 Semiconductor Market Drivers
6
Coronavirus has had a deep negative
impact on Integrated Circuit sales:
• Certainties:
– Coronavirus Pandemic
– Macroeconomic ‘V’acuum
– WAHE* & Win 7 EoL refresh
– 7/10nm and 5/7nm demand ramps
– Memory Price Elasticity
– 5G: Smartphone, Auto, Industrial
• Uncertainties:
– Ability of Governments to prevent economic
infection from Coronavirus
– 2020 Elections in U.S.
*Work-At-Home Economy

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The Chip Insider®
Strategy & Tactics
Strategy and Tactics: The bright & dark sides of the
Coronavirus
Summaries:
The bright side of the Coronavirus: Chip makers have been
working hard as ever to come out of the COVID-19 storm gaining
market share. What is good about this is it can generally be expected
that semiconductor manufacturers will keep Capital Expenditures
going for technology upgrades for new nodes, and even capacity
expansions where they see growth opportunities. Chipmaker
responses to the Coronavirus was to aggressively… Meanwhile,
TSMC Taiwan started … SMIC and other Chinese companies in the
semiconductor industry were quickly propped up by the China Big
Fund. The backdrop to this is a government in China that sees
semiconductor self-sufficiency as essential to its future. Outside of
China, wafer fabs around the world are running at utilization rates
similar to normal times that would be expected for this year back in
early January.
Macroeconomics and the WAHE restructuring: The Coronavirus has
had an unprecedented impact everywhere in a way that hasn’t been
seen since Pearl Harbor with its forced restructuring of business to a
Work-At-Home Economy (WAHE, pronounced like the words ‘Way’
and ‘Whey’). WAHE will be to the post-Coronavirus world what the
Auto was to the post-WWII and the second half of the twentieth
century.
The dark side of the Coronavirus: The business and
macroeconomic issue can be framed by China’s experience, where
general utilization dropped below 50% with the shutdown. Since then,
it increased back to normal levels for semiconductor, as well as for
other factories. However, consumers have not returned to normal
patterns… Another macroeconomic problem facing China’s factories
and economy is that the rest of the world is well behind them in
recovering from the Coronavirus.
Supply Chain constraints: If you’re a semiconductor equipment or
materials supplier, there are two constraints affecting delivery to
customers and demand is not currently one of them. One is in the
2nd and 3rd tiers of critical subsystem suppliers and the other is in
logistics… Supply Chain strategy had shifted from Just-in-Time to
Just-in-Case, creating new problems.
Contact us to get the full report and more

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semiStockWEEK: VLSI's Semiconductor Stock Indices returned to negative
territory along with the market following the March jobs report missed expectations.
Semiconductors -2%, Equipment -7%, EDA 1%, Electronic Materials -5%.

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Semiconductor Stocks:
Weekly Growth and Forward P/E Ratios by Company
VLSI’s Semiconductor Stock Index
gave back 1.6% despite claiming 5 of
the top 6 stocks.
IDM -5.5%
Foundry & OSAT -0.2%
Fabless & Fablite -0.7%
AMD AMD Analog Devices ADI AmkorAMKR
ASE ASX Broadcom AVGO IBM IBM
Infineon IFNNY.PK Intel INTC JCET600584.SS
Kingpak Technology6238.TWO
Micron Technology MU
On Semiconductor ON Panasonic PC
MagnaChip Semiconductor MX Maxim MXIM
MaxLinear MXL MediaTek 2454.TW
NVIDIA NVDA Qualcomm QCOM
Samsung Electronics 005930.KS Silicon
Laboratories SLAB Skyworks SWKS SMIC SMI
STMicroelectronics STM
Texas Instruments TXN TSMC TSM UMC
UMC Western Digital WDC Xilinx XLNX
Weekly Gains 4/3/2020
Semiconductor Stocks
Price
Change
Forward P/E Semiconductor Stocks
Price
Change
Forward P/E
IDM Fab-lite to Fabless
Intel 3.4% 11 AMD -8.6% 27
Micron -5.2% 8 Analog Devices -2.4% 16
ON Semiconductor -15.1% 7 Broadcom 1.5% 10
Samsung Electronics -2.7% – IBM -1.4% 8
SK hynix -4.4% Infineon -2.2% 13
STMicroelectronics -4.9% 12 MagnaChip Semiconductor 17.4% 13
Western Digital -9.6% 5 Maxim 2.3% 20
Foundry & OSAT MaxLinear 3.3% 11
Amkor -4.4% 8 MediaTek -1.8% –
ASE 0.1% 13 NVIDIA -3.5% 27
JCET 0.3% 66 Panasonic -7.6% 9
Kingpak Technology 4.1% – Qualcomm -2.0% 11
SMIC 0.3% 1218 Silicon Laboratories -3.7% 22
TSMC 0.3% 15 Skyworks -7.8% 11
UMC -1.8% 13 Texas Instruments -0.5% 18
Xilinx 5.1% 25

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Chip Equipment & Related Stocks:
Weekly Growth and Forward P/E Ratios by Company
VLSI’s Semiconductor Equipment
Stock Index plunged 6.7% with all
companies finishing in the negative.
WFE -7%
Test -9.4%
Assembly -5.1%
Applied Materials AMAT Advantest ATEYY
ASM International ASMI
ASM Lithography ASML ASM Pacific 0522.HK
BE Semiconductor BESIY.PK
FormFactor FORM KLA KLAC
Kulicke & Soffa KLIC Lam Research LRCX
Onto Innovation ONTO Nikon 7731
Teradyne TER Tokyo Electron Limited 8035
Veeco VECO
Weekly Gains 0 4/3/2020
Equipment Stocks
Price
Change
Forward P/E Equipment Stocks
Price
Change
Forward P/E
Wafer Process: Test:
Applied Materials -6.1% 10 Advantest -12.6% –
ASM International -4.8% 14 Teradyne -3.6% 15
ASML -3.2% 22 FormFactor -12.1% 15
KLA -10.1% 12
Lam Research -9.6% 11 Assembly:
Onto Innovation -2.3% – BESI -8.5% –
Nikon -8.5% – Kulicke & Soffa -2.6% 10
TEL -8.2% – ASM Pacific Technology -4.3%
Veeco Instruments -10.0% 9

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Electronic Materials Stocks:
Weekly Growth and Forward P/E Ratios by Company
VLSI’s EDA Stock Index was led up 1.4%
by Cadence.
VLSI’s Electronics Materials Stock Index
fell 5.3%, SOITEC came out on top.
BASF BASFY Cabot Microelectronics CCMP
Cadence CNDS DNP 7912 DuPont DD
JSR 4185 Shin-Etsu 4063 SOITEC
SOI.PA Synopsys SNPS Tokyo Ohka 4186
Weekly Gains 4/3/2020
EDA & Electronic Materials Stocks
Price
Change
Forward P/E EDA & Electronic Materials Stocks
Price
Change
Forward P/E
EDA DNP -12.8% –
Cadence 2.6% 24 DuPont -5.7% 4
Synopsys 0.1% 21 JSR -0.4% –
Electronic Materials Shin-Etsu -9.3% –
BASF -3.1% 2 SOITEC 4.9% –
Cabot Microelectronics -6.4% 14 Tokyo Ohka -9.5% –

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Semi
Stocks
Equipment
Stocks
Materials
Stocks
EDA
Stocks
Semi
Stocks
Equipment
Stocks
Materials
Stocks
EDA
Stocks
30-Aug-19 81.2 75.8 87.7 99.0 3.2% 1.5% 2.4% 3.8% 45 7.3% -9 -6.6% 13.9% 90.3 2.8%
06-Sep-19 84.7 79.3 91.2 101.4 4.3% 4.6% 4.0% 2.5% 53 10.2% -1 -2.8% 13.0% 91.9 1.8%
13-Sep-19 87.6 83.4 95.8 94.3 3.5% 5.2% 5.0% -7.0% 45 17.1% -8 -7.5% 24.6% 92.8 1.0%
20-Sep-19 85.4 84.5 94.5 95.0 -2.6% 1.3% -1.3% 0.8% 19 5.7% -35 -8.3% 14.0% 92.3 -0.5%
27-Sep-19 83.6 83.6 93.8 94.7 -2.1% -1.1% -0.7% -0.4% 16 3.7% -37 -12.1% 15.8% 91.4 -1.0%
04-Oct-19 84.6 84.4 93.1 96.0 1.1% 1.1% -0.8% 1.4% 34 10.1% -20 -3.5% 13.6% 91.1 -0.3%
11-Oct-19 86.0 86.4 95.0 96.0 1.7% 2.3% 2.0% 0.0% 35 9.0% -15 -4.4% 13.4% 91.7 0.6%
18-Oct-19 86.2 86.7 97.5 94.5 0.2% 0.3% 2.7% -1.5% 28 11.2% -23 -6.0% 17.2% 92.2 0.5%
25-Oct-19 88.2 92.4 100.0 94.9 2.4% 6.6% 2.5% 0.4% 46 15.6% -7 -16.3% 31.9% 93.3 1.2%
01-Nov-19 90.3 92.6 101.2 94.8 2.4% 0.2% 1.3% -0.1% 36 9.9% -15 -12.1% 22.0% 94.7 1.5%
08-Nov-19 91.7 94.9 103.2 96.1 1.5% 2.5% 1.9% 1.3% 37 12.5% -14 -4.2% 16.7% 95.5 0.9%
15-Nov-19 92.0 97.0 101.5 97.6 0.4% 2.1% -1.6% 1.6% 31 10.8% -20 -5.0% 15.8% 96.3 0.9%
22-Nov-19 90.0 92.0 98.7 95.9 -2.2% -5.1% -2.8% -1.8% 7 5.7% -44 -17.7% 23.4% 96.0 -0.3%
29-Nov-19 90.9 93.7 96.7 100.1 1.0% 1.8% -2.0% 4.4% 37 5.0% -14 -15.0% 20.0% 96.9 1.0%
06-Dec-19 92.6 94.7 95.5 95.5 1.8% 1.1% -1.2% -4.6% 33 8.2% -19 -4.8% 13.0% 97.1 0.2%
13-Dec-19 96.7 98.0 100.0 96.9 4.5% 3.5% 4.7% 1.5% 48 10.7% -3 -1.4% 12.1% 97.8 0.7%
20-Dec-19 99.2 99.9 100.1 99.6 2.6% 1.9% 0.1% 2.7% 39 12.5% -13 -8.4% 20.9% 99.4 1.7%
27-Dec-19 100.0 100.0 100.0 100.0 0.8% 0.1% -0.1% 0.4% 29 5.9% -23 2.7% 8.6% 100.0 0.6%
03-Jan-20 100.3 100.2 98.9 100.5 0.3% 0.2% -1.1% 0.5% 23 9.5% -24 -3.4% 12.9% 99.8 -0.2%
10-Jan-20 101.5 100.9 99.2 104.7 1.2% 0.7% 0.2% 4.2% 32 7.2% -22 -4.8% 12.0% 100.8 0.9%
17-Jan-20 104.7 104.8 101.0 106.4 3.2% 3.9% 1.8% 1.7% 45 19.1% -10 -3.8% 22.9% 102.8 2.0%
24-Jan-20 106.1 105.1 100.5 107.8 1.3% 0.3% -0.5% 1.3% 29 14.9% -25 -10.8% 25.7% 101.7 -1.0%
31-Jan-20 98.4 98.4 96.0 103.8 -7.3% -6.3% -4.5% -3.8% 3 2.2% -51 -17.7% 19.9% 99.5 -2.1%
07-Feb-20 102.5 101.3 100.4 107.2 4.2% 2.9% 4.6% 3.3% 45 21.4% -10 -11.7% 33.1% 102.7 3.2%
14-Feb-20 106.5 106.6 101.0 114.2 3.9% 5.3% 0.6% 6.5% 47 27.5% -8 -10.0% 37.5% 104.3 1.6%
21-Feb-20 103.7 99.3 98.1 106.4 -2.6% -6.9% -2.8% -6.9% 6 4.5% -49 -17.1% 21.6% 103.0 -1.3%
28-Feb-20 93.1 90.4 85.5 96.2 -10.2% -8.9% -12.9% -9.5% 0 -0.8% -55 -21.3% 20.5% 91.2 -11.5%
06-Mar-20 91.8 91.0 84.8 95.1 -1.5% 0.6% -0.7% -1.2% 18 7.9% -35 -11.0% 18.9% 91.7 0.6%
13-Mar-20 81.1 78.3 71.0 90.7 -11.6% -13.9% -16.3% -4.6% 0 -2.1% -55 -26.6% 24.5% 83.7 -8.8%
20-Mar-20 69.6 65.2 67.0 78.4 -14.2% -16.7% -5.7% -13.6% 3 15.3% -52 -28.9% 44.2% 71.1 -15.0%
27-Mar-20 78.3 78.7 76.6 88.7 12.6% 20.6% 14.4% 13.1% 52 36.1% -3 -11.7% 47.8% 78.4 10.3%
03-Apr-20 77.1 73.4 72.6 89.9 -1.6% -6.7% -5.3% 1.4% 14 17.4% -41 -15.1% 32.5% 76.8 -2.1%
The Prior
Week's
Close
S&P500
MaxGrowth
Companies
Up
Companies
Down
Rangeof
Growth
MinGrowth
S&P500
Growth
VLSI’s Indices of Chip Industry Stocks Weekly Growth