Page 29 - Fortune-November 01, 2018

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ALPHABET TOKYO ELECTRON SUNING.COM
U.S. [GOOGL, $1,092] JAPAN [TOELY, $32] CHINA [$2]

2.9 2.8 2.8
1.6 1.3 2.0 0.8 1.7 1.1

THE CORE GOOGLE search prod- IT MAY NOT BE a household SUNING IS A ROLE MODEL for traditional retailers seeking to adapt
uct remains the driver of Al- name in computer chips like In- smoothly to e-commerce. The electronics retailer has become a
phabet’s business, thanks to tel or AMD, but Tokyo Electron, “clicks and mortar” powerhouse, exploring new retail formats
its incredibly lucrative on- which had $10.6 billion in sales such as “unmanned stores,” and over 40% of its sales are now on-
line advertising franchise. But in its most recent fiscal year, line. Suning has used its network of some 4,000 stores and over
other businesses are emerg- plays a crucial role in the semi- 6 million square meters of warehousing to facilitate deliveries
ing as potential blockbusters: conductor industry. Besides of online orders; that same network is the foundation of a fast-
Google’s Waymo self-driving selling the equipment used to growing third-party logistics service. Sales for Suning as a whole
car division is on the rise, its manufacture chips, Tokyo Elec- rose 32% year over year in the first half of 2018.
cloud-computing platform re- tron also makes machines Market value: $17.1 billion
cently had its first $1 billion used to produce high-quality
quarter, and analysts believe flat-panel display screens for
YouTube’s video service could personal computers and LCD
generate up to $20 billion in televisions. Though it’s vulner-
revenue this year. The multibil- able to overall slowdowns in the
lion-dollar question: Whether semiconductor industry,
discomfort with Google’s mar- Tokyo Electron’s exposure to
ket power could create more the screen industry offers it a
tension with regulators. separate source of growth.
Market value: $756.0 billion Market value: $21.4 billion

33

MICROCHIP
TECHNOLOGY
U.S. [MCHP, $66]

2.8
2.0 0.8

WHEN THIS Arizona-based
microelectronics maker went
public in 1993, it was a penny
stock. Twenty-five years later,
the company’s shares trade
at $66. The world’s seem-
ingly bottomless appetite for
computer chips has kept the
business growing at a healthy
clip, leading to nearly $4 bil-
lion in sales in its last fiscal
year. Microchip Technology,
known for its tiny, computer- SNACKBOT
like, microcontroller circuits, Electronics retailer
continues to expand by mak- Suning uses
ing big acquisitions, most re- autonomous robots
cently picking up Microsemi, to deliver parcels—
and in some cities,
IM AGINECHIN A $10 billion. drinks and food.
a California manufacturer, for
Market value: $15.7 billion

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