FBR Capital Markets Analyst Christopher Rolland says Fairchild Semiconductor Intl Inc (FCS) has underperformed its peers in recent years. But, he believes the company has finally gotten itself on firmer footing.
“They are shutting down three old fabs in the United States, and they are consolidating that footprint into South Korea, which is their state-of-the-art fab. And that will allow them to pretty substantially increase gross margin over time,” Rolland says. “So there is a self-help story going on there in that name, and then they are seeing some of their end markets start to pick up as well.”
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Rolland says Fairchild is also seeing an uptick in the auto, industrial and mobile segments. Specifically, he sees opportunity for Fairchild in adaptive charging for mobile phones.
“Adaptive charging allows users to get very, very fast charge times to their cell phones, something like four hours of talk time on a 10-minute battery charge,” he says. “And so their intelligent charging products have just started to take hold at some major OEMs. We think those things together make Fairchild pretty well-positioned right now.”
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