back to article Risk-averse Kyocera gambles nearly $10b of own shares on semiconductor growth

In spite of uncertain economic conditions, Kyocera is reportedly putting its stake in Japanese telecommunications operator KDDI on the line to expand its semiconductor footprint. While many know Kyocera for its ruggedized smartphones, tablets, or perhaps its office equipment, the company is actually a major supplier of ceramic …

  1. skwdenyer

    The article questions whether new fabs are needed.

    Given the latest well-sourced predictions of China invading Taiwan (and the very likely major sanctions and supply chain shocks likely to result), there seems to be a very real supply chain risk to *not* having new fabs brought on-line outside of China's sphere of influence.

    1. Version 1.0 Silver badge
      Megaphone

      Every world view would change if Xi Jinping stood up and said that in future China would respect and support Taiwan as a respected and independent country with its own Chinese culture, and I would love to visit China again.

      1. An_Old_Dog Silver badge

        When a Politician Speaks

        ... one best weigh the potential (dis-)truthfulness of that politician's statements against their own past record. If Xi Jinping said, "in future China would respect and support Taiwan as a respected and independent country with its own Chinese culture." I would not believe he meant it.

        I too would love to visit China, but not under the current regime!

      2. Jan 0

        Re: if Xi Jinping stood up and said that in future China would respect and support Taiwan

        I'd expect an invasion the day after.

        ++ Bring back Dabsy! Now! ++

  2. Richard 12 Silver badge

    Why has demand faltered?

    I have a suspicion that a lot of the lowered demand for high-value semiconductors is because it's too difficult to get hold of the low-value ones that make the bigjobs work.

    Micron may be creating serious trouble for themselves 12-18 months down the line.

    The companies that do well are the ones who invest during a downturn, as they are ready when economies improve.

  3. John Brown (no body) Silver badge

    While many know Kyocera for its ruggedized smartphones, tablets, or perhaps its office equipment,

    Um...wot? I must admit to never having really thought about it, and it's common for these big far eastern conglomerates to have their fingers in all sorts of pies, but I can, with hand on heart, say I've never associated the brand Kyocera with anything other than printers.

    1. electricmonk

      Re: While many know Kyocera for its ruggedized smartphones

      You're witnessing another step in the gradual Americanisation of El Reg. Kyocera's ruggedised phones are well-known in Japan and the US; elsewhere, they're unavailable and pretty much unknown. You'd think the writer would know that.

      1. MOV r0,r0

        Re: While many know Kyocera for its ruggedized smartphones

        Back in the days of TTL their logo was all over components so maybe it's partly the readership getting younger?

        1. John Brown (no body) Silver badge

          Re: While many know Kyocera for its ruggedized smartphones

          I did have a nagging sense of that, but wasn't sure enough to mention in.

    2. Glen Turner 666

      Kyocera do ceramics, and things which use ceramics

      Kyocera basically do what it is on the tin -- Kyoto Ceramics.

      Kyocera got into laser printers via ceramic components in the high-temperature fuser unit. Kyocera got into kitchenware via knives via ceramic blades. Kyocera got into smartphones via ceramic speakers, which are now the norm across all thin devices from phones to TVs. Their newer rugged phones use the entire front glass as both a speaker and a tissue conduction actuator (which means you can use the phone without removing hearing protection, just hold the phone touching the earmuffs).

      Basically the company makes components and if it sees a hole in the market it is selling components into, then it fills the gap.

  4. Dinanziame Silver badge

    Makes sense to me. If we're seeing capability issues in the middle of a downturn, then what will it be when the economy picks up? The alternative being that the economy never picks up.

    1. Yet Another Anonymous coward Silver badge

      Yes but if you don't cut costs and headcount during a downturn the share price drops and you, as CEO, get fired. It doesn't help if it puts your replacement in a great position for the next economic cycle

      1. rcxb Silver badge

        It doesn't help if it puts your replacement in a great position for the next economic cycle

        It helps quite a lot if your pay package (and golden parachute) includes lots of company stock. Even if you get fired, you likely have to hold-on to that company stock for several years.

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