so you wait till a customer showing revenue is signed before you buy wbt as you have stated as a hedge perhaps
the HBM numbers detail clearly the volume cost advantage and the power it has to drive trends and technology HBM is an intricate manufacturing process up to 12 layers accessed by complex TSV interconnect - costly and difficult - impractical to scale and yet it is in continuing development and high volume across the big 3 - for one key reason HBM industrial comprises only 4% of bit output yet returns 20% of the revenue numbers - reports differ marginally depending on where you source the numbers but that is the understood advantage. - the big 3 can't get enough of it
Intel struggle numbers on a macro example back this up - the opportunity they missed was once volumes on pcs' peaked in 2012 and began declining they lost the volume advantage - wafer volumes from ARM filled the void and shot past x86 volumes and delivered market advantage to TSMC and its design partners apple, qualcomm, nvidia and amd. - we know where that has ended up for those guys - interestingly this is one of the main areas the new Intel CEO has begun addressing straight away - chatting to TSMC re a foundry partnership in certain nodes
technological advantage combined with volume / cost reduction over time is the key formula for success - (Wrights Law - more relevant than Moores Law imo) driving down the cost of circuits compared to your competitors is honey for the fabs/foundries - that's where the action is for long term growth and increasing revenue - and that is the first question end user customers ask even before design is finalised ....'how can we get the cost down' ? - volume is always the answer - spread the fixed manufacturing costs across increased volume and the customer product has greater margin - ie it gets cheaper to manufacture all those DBH and Onsemi customers are about to increase their margin on current production by adopting wbt as a replacement - 150 deg really opens the door wide - that is the tornado ch and the management are referring too imo no brainer
all the holder here needs to do is sit and wait and let management get on with it and the market will follow
its a very smart strategy just an opinion of course from a holder
WBT Price at posting:
$1.87 Sentiment: None Disclosure: Held
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