The semiconductor industry has proved to be resilient despite broad economic weakness stemming from the COVID-19 pandemic. Companies in this space have capitalized on a pandemic-driven increased dependence by individuals and corporations on technology that requires microchips. The global semiconductor market is all set to witness robust, decade-long growth due to fast-paced progress on technologies such as AI, 5G, cloud computing, IoT and autonomous driving.
Given this favorable industry backdrop, chipmakers have been expanding their facilities to meet the surging demand.
As a result, we believe, Vishay Intertechnology, Inc. (VSH – Get Rating) and Kulicke and Soffa Industries, Inc. (KLIC – Get Rating) are strategically positioned to reap major benefits from the industry’s boom.
VSH is one of the world’s largest manufacturers and suppliers of discrete semiconductors and passive electronic components in the U.S., Europe, Asia, and internationally. The company’s components are used in virtually all electronic devices and equipment, including industrial, computing, automotive, consumer, telecommunications, military, aerospace, power supplies, and medical markets. VSH operates primarily in the following segments: Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors.
VSH recently extended its NCW AT family of wide terminal thin film chip resistors with a new line of devices in the 0612-case size, for powering electronics in automotive and industrial applications. The company has also introduced a new series of surface-mount multilayer ceramic chip capacitors (MLCCs) with a lead (Pb)-bearing termination finish. The capacitors are suitable for low Earth orbit (LEO) satellites and other space, military, and avionics applications that require tin whisker mitigation.
For the fourth quarter ended December 31, 2020, VSH reported top-line revenue of $667.2 million, representing a 9.4% increase year-over-year, which was driven by higher sales to automotive customers. Its operating margin for the quarter was 9%. At the same time, VHS’ product inventories were reduced by a further $24 million. The company delivered EPS of $0.26, rising 4% compared to the year-ago value of $0.10.
VSH designs its devices to increase the efficiency of high frequency applications by reducing switching losses regardless of the effects of temperature variances. This allows the diodes to operate at higher temperatures. With a year-to-date gain of 12.4%, the company’s product innovations, successful acquisition strategy, and “one-stop shop” service are driving its path toward global industry leadership. Wall Street analysts estimate VSH’s current year revenue and EPS will increase 15.5% and 71.7%, respectively, year-over-year.
VSH’s POWR Ratings reflect this promising outlook. VSH has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors with the weighting of each optimized to improve overall performance.
VSH has an A grade for both Value and Industry. It is ranked #17 of 96 stocks in the Semiconductor & Wireless Chip industry.
In total, we rate VSH on eight different levels. Click here to check additional POWR Ratings for VSH (Growth, Stability, Momentum, Quality and Sentiment).
Singapore-based KLIC is a leading provider of semiconductor, LED and electronic packaging and assembly solutions that support the global automotive, consumer, communications, computing, and industrial sectors. It operates in two segments – Capital Equipment, and Aftermarket Products and Services (APS).
Earlier this month, KLIC…
Continue reading at STOCKNEWS.com