January 18th, 2022 | 11:30 CET
Taiwan Semiconductor, BrainChip, JinkoSolar - Markup in the chip industry
The chip crisis was one of the most discussed topics of 2021. The shortage of semiconductors led to production stops, short-time work in the automotive industry, and skyrocketing prices. Even for the current year, manufacturers still do not see any relief on the market. In general, the semiconductor industry is in a strong state of flux. With the development of chips based on artificial intelligence, a new generation is now finding its way to the mass market. The best example is the Australian Company BrainChip, for which the doors to commercialization have been opened wide.
time to read: 3 minutes | Author: Stefan Feulner
ISIN: TAIWAN SEMICON.MANU.ADR/5 | US8740391003 , BRAINCHIP HOLDINGS LTD | AU000000BRN8 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007
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Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Ready for commercialization
The start of the new year could not have gone better for the Australian Company BrainChip Holdings, which also has offices in the United States. Two pieces of news, in particular, caused a stir at the leading provider of ultra-low-power, high-performance artificial intelligence technology and the world's first commercial manufacturer of neuromorphic AI chips and IP. As a result of the good news, the share price has risen from EUR 0.45 to over EUR 1.05 since the first trading day of the new year in Frankfurt. The Company is currently trading at EUR 0.92, equating to a market value of EUR 1.62 billion.
The Akida chip developed by BrainChip Holdings, which according to management, represents "the most efficient AI solution ever produced", has the potential to conquer the mass market. Extremely low-power and high-performance, the Akida processor supports the growth of edge AI technology by using neuromorphic architecture, a type of artificial intelligence inspired by the biology of the human brain. With each transaction, Akida thereby learns on its own. That makes the technology ideal for modern edge devices, and it is expected to be used in autonomous driving, IoT devices, robotics, medical diagnostics, and security technology.
Hey, Mercedes!
Information Systems Laboratories, a technology company specializing in advanced signal processing, space exploration, underwater technologies, surveillance and tracking, cybersecurity, advanced radar systems, and energy independence, announced that it is developing an AI-based radar research solution for the Air Force Research Laboratory (AFRL) based on the Akida™ neural network processor.
Even greater attention was generated by Mercedes' announcement that its Stuttgart-based engineers will work with BrainChip to develop systems based on the Company's Akida hardware and software. Among other things, the technology will make the "Hey, Mercedes" voice control in the EQXX five to ten times more efficient than conventional voice control. Neuromorphic computing is still in its infancy, but Mercedes says similar systems could be available in various consumer products within a few years. And if deployed on a large scale in an electric vehicle, neuromorphic computing has the potential to significantly reduce the energy required to run the latest artificial intelligence technologies. BrainChip is likely to get a bigger piece of that pie.
More information is expected from the Company at the International Investment Forum (IIF) on February 17, 2022. You can register free of charge at www.ii-forum.com.
Growth spurt due to strong demand
Global semiconductor leader Taiwan Semiconductor ended the fourth quarter with double-digit revenue and earnings growth. Earnings per share were USD 1.15 on revenue of USD 15.74 billion, up 24% from a year earlier. Analyst estimates were USD 1.11 per share on revenue of USD 15.77 billion.
For the first quarter, Taiwan Semiconductor expects revenue between USD 16.6 billion and USD 17.2 billion and gross margin between 53% and 55%, while operating profit margin should be between 42% and 44%.
Discussing the results, TSM CEO C.C. Wei said the Company would spend between USD 40 billion and USD 44 billion on capital expenditures to alleviate the global chip shortage and capitalize on demand. TSM shares could mark a new all-time high after rising nearly 2%. Invested investors should successively tighten the stop.
Promising after announcement
The chart picture of the solar module producer JinkoSolar is more positive. The bottoming out at USD 42.50 could be completed by a breakout above the USD 49.80 mark and generate a new buy signal.
The stock market community positively received the approaching IPO of the subsidiary Jiangxi Jinko. Jiangxi Jinko is to be listed on the STAR Market of the Shanghai Stock Exchange. Two billion shares are to be issued in the first step, with 600 million shares already earmarked for institutional investors such as the China Insurance Investment Fund and China Energy Investment Corporation.
The issue price per share is expected to be 5 yuan, after which the total gross proceeds would amount to USD 1.57 billion. After the IPO, JinkoSolar will remain the majority shareholder with a quota of just under 60%.
The semiconductor crisis is expected to continue in the current year. With the new generation of chips based on artificial intelligence, BrainChip Holdings is leading the way and has excellent development potential through its cooperation with Mercedes. Taiwan Semiconductor continues to be in demand, and JinkoSolar could soon generate a buy signal.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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