Nelson Peltz should definitely be on the Disney board!

Nelson Peltz should definitely be on the Disney board!

He would help reform the company, improve the quality of product and generally serve in the best interests of shareholders, as he has done at many other companies.

This would significantly improve Disney’s share price.

There have been a few recent articles in the press about @Disney 'winning' its proxy contest with Nelson Peltz based on early election returns that have been leaked to the media.  We don't have an investment in Disney, but I thought it useful to point out the inappropriateness of these leaks to the press.

Only the company and its advisors have access to how shareholders have voted before the day of the annual meeting.  My understanding is that it is illegal to release the outcome of the vote prior to it being finalized as it has the effect of manipulating the outcome.  Here, the company and/or its advisors have leaked that Disney is winning the contest.  It is really inappropriate that they have done so.

And how does one know that it is Disney and/or its advisors that are the source of the leak?

If Peltz were 'winning,' there would be no leaks to the press.

The reason why the progress of an election for directors must be kept confidential until the results are final is that leaking the results can affect the ultimate outcome.  

Institutional shareholders worry about offending management by voting with an activist.  They are concerned that if management learns that they have voted against the incumbent directors, they may lose 'access' to management going forward.  In other words, Bob Iger is less likely to come visit and/or take a call with a shareholder if the shareholder voted with the dissident.

This is clearly a close election.  Institutions don't want to risk voting against the incumbent board if it is clear that the activist will lose.  They want to be on the winning side of the election.  

Here, the company and/or its advisors have leaked the early results in order to tip more institutions and other shareholders to vote for the incumbent board, unfairly tipping the scale in the incumbent board's favor.  In other words, an institution may think: if Peltz is going to lose, it is not worth taking the risk of offending management by voting for him.

This is unfortunately not an uncommon practice.  Years ago, in our proxy contest with ADP, the company and/or its advisors did the same thing.

The @SECGov  should do a thorough investigation of this proxy contest and appropriately punish whoever is responsible for this miscarriage of shareholder governance and justice.

Companies of the caliber of Disney and/or its advisors should not behave this way.

Lastly but importantly, I think highly of Nelson Peltz.  I am sure he would be greatly additive as a member of the Disney board.  Ask yourself, why is the company fighting so hard to keep him off?  The fact that the company leaked the early returns to the media is further evidence that an activist of Nelson's caliber deserves to be on this board for all shareholders benefit.

Based on my knowledge of Nelson's capabilities and the dirty tricks implemented by the company and its advisors, I strongly recommend that shareholders vote for Nelson Peltz for the Disney board.

Institutions who have already voted still have time to change their vote.  It is time that we make an example of Disney here so that this bad practice does not continue to poison shareholder democracy.

wsj.com/finance/disney…


Building 2nm Wafer Factory, Accelerating Global

Amid a growing wave of artificial intelligence (AI), the importance of advanced process chips is emerging day by day. Currently, the 3nm process is the most advanced node in the industry. Meanwhile, manufacturers such as TSMC, Samsung, Intel, and Lapidus are actively promoting the construction of a 2-nanometer wafer fab. TSMC and Samsung originally planned to mass-produce 2nm chips in 2025, while Lapidus planned to start trial production in 2025.

1. 2nm wafer fab, finished construction within this year?

Recently, the International Semiconductor Equipment and Materials Association (SEMI) announced that both TSMC and Intel are expected to potentially complete the construction of the 2nm wafer fab by the end of this year.

It is expected that Intel will be the first to commercialize 2-nanometer chips. Intel PC CPU Arrow Lake products utilize 2nm process nodes. TSMC's 2nm process is expected to be applied to Apple's iPhone AP chip. As a result, TSMC's 2nm Capa is also expected to increase rapidly.

TSMC's installation of 2nm process equipment is accelerating, according to a report in the Commercial Times. TSMC's new Fab20 P1 plant in Baoxan is scheduled to install equipment in April this year, with trial production to begin in the second half of 24 and small production to begin in the second quarter of 25.

For Intel, ASML already provided Intel with the world's first NA (High Numeral Aperture) EUV EXE:5200 in late 2023, supporting the production of 2nm chips. Later, Intel began calibrating the lithographic machine, which went smoothly.

2. Both Samsung and Rapidus will move

According to the previously announced technology roadmap, Samsung will first mass-produce 2-nano process chips for mobile handsets from 2025, and produce high-performance computing (HPC) products by 2026. The company plans to expand the scope to automotive chips by 2027.

Rapidus is establishing a 2nm chip fab in Chitose City, Hokkaido, Japan. It launched a pilot production line in April 2025 and aims to mass-produce it in 2027.

Recently, it has been reported that several Japanese manufacturers will supply their products to Lapidus to facilitate the development of advanced wafer fabs in Japan. Among them, DNP plans to mass-produce masks for 2nm chips at its Fukuoka plant and other businesses in Japan in 2027 and supply them to Lapidus.

In addition to the DNP, Japanese company TOPAN Holdings is also working with IBM to develop masks for 2nm chips and aim to mass-produce them by 2026, with Rapidus reportedly the buyer. Also, companies such as Tokyo Ohka Kogyo (TOK), JSR, and Shin-Etsu Chemical are expected to be suppliers of Rapidus.

3. The 1nm chip plan has been revealed

Following 2 nm, 1nm chips will be the next target of wafer fabs. The industry expects to mass-produce 1nm chips from 2027 to 2030.

TSMC plans to reach the A14 node (1.4 nm) in 2027 and the A10 node (1 nm) in 2030. According to a recent report by Economic Daily News, TSMC plans to set up a plant in the Science Park in Taibao City, Zai Prefecture, central Taiwan. It produces 1nm chips.

Samsung expects to release 1.4nm process by the end of 2027. Samsung's SF1.4 (1.4nm) process will increase the number of nanosheets from three to four, which is expected to significantly improve performance and power consumption.

According to Intel's latest foundry roadmap, Intel 14A (1.4 nm level) nodes will go into production in 2026, and Intel 10A (1 nm level) will start developing or producing by the end of 2027.