Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Manufacturing/Packaging

IBM's 300mm jump could bode well for PDF Solutions

Posted: 23 Jan 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Dylan McGrath? IBM? 300mm? PDF Solutions?

The news of a 250 percent jump in revenue from IBM Corp.'s 300mm fab in East Fishkill, New York could bode well for process integration technology provider PDF Solutions Inc., said one semiconductor industry financial analyst.

In a research note published last week (Jan. 18), Adams Harkness analyst Dennis Wassung said his firm believes that PDF Solutions receives gain share revenue on IBM's 90nm production at the 300mm East Fishkill fab. Wassung believes PDF Solutions will report its first material gain share related to the Xbox 360, the Microsoft game machine featuring a processor being fabricated by IBM on a foundry basis, when the company releases fourth quarter results on Jan. 26.

IBM reported the 250 percent jump in 300mm production when it report a 12 percent year-to-year drop in fourth quarter 2005 sales.

"Considering IBM's statement that Q4 was the first full quarter of production shipments for the game processors, we believe volume will continue to ramp well into 2006, driving [PDF Solutions] gain share," Wassung said in the research note.

Wassung said he expects to PDF Solutions to further benefit from production of the Xbox processor by IBM partner and fellow PDF Solutions customer Chartered Semiconductor Manufacturing Pte. Ltd., as well as the upcoming launch of Sony Corp.'s PlayStation 3, the processor for which will also be manufactured by IBM and Chartered.

Adams Harkness reiterated its "buy" rating at price target of $20 for PDF Solutions, saying, "We remain confident in our estimates and see room for upside."

PDF Solutions was up 50 cents, or 2.7 percent Wednesday, closing at $19 on a tough day of trading that saw the Nasdaq composite index slip 23 points to close at 2,279.

- Dylan McGrath
EE Times

Article Comments - IBM's 300mm jump could bode well for...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top