Canon has a new way to make chips

Article Excerpt

CANON INC. ADRs $30 remains a hold. The Japanese conglomerate (Over-the-counter Pink Sheets market symbol CAJPY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.1 billion; Market cap: $33.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.canon.com) recently developed a new way to manufacture of computer chips. Called “nanoimprint lithography,” this method stamps chip designs onto silicon wafers instead of carving them using light. These chip-making machines also cost less than traditional equipment. Advances like this will help cut Canon’s reliance on cameras and printers. However, it could have a hard time convincing chipmakers to replace their current machines. Japanese export controls would also prevent the company selling the new equipment to chipmakers in China. Canon is a hold. hold. …