The Most Elite Semiconductor companies are here to stay!

/ adezeno

semiconductor is a very capital intensive & very competitive industries to be in.

At Eastspring Investments. We had position companies like this to be include into our portfolio.

Originally tweeted by adezeno S.O (@adezeno_s_o) on July 6, 2021.

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source:

  • The past 20 years we see [[mobile phone]] evolved from a telecommunications 📡 device with basic function such as ^^sms^^ & ^^call^^ into a personal information platform. 
    • What’s behind every [[smart phone]] today is the little thing call [[semiconductor]] or ^^integrated Circuit^^ (IC)
      • This is like the “Brain” that run your [[smart phone]]
    • [[semiconductor]] are manufactured in a foundry know as Fabrication plan or (Fab)
      • [[Taiwan]], [[South Korea]] & [[China]] account for 90% of Global capacity 
      • The current Valuation for [[semiconductor]] foundry market is USD 42 Billion -> expected to reached USD 62 Billion by 2026
        • [[Taiwan]] control 80% of the market share for smallest & most efficient chip. 
      • How much it takes to Run a [[semiconductor]] foundry?
        • Today it cost about $3 -4 Billion USD to build a Fab & produce Chip that car maker need. 
          • And they company need to throw even more money 💸 into R&D to keep up with the latest technology. 
        • [[Taiwan Semiconductors]] [[$TSMC]] is a world leading [[semiconductor]] foundry. 
          • They recently announce will invest $100 Billion USD to expand its chip fabrication capacity. 
          • Currently TSM is already mass producing chip using very advanced ^^Extreme Ultraviolet (EUV)^^ lithography technology 
            • This technology enable it to make Smaller & Faster Chip at lower cost. 🚀
        • Having said that, it’s difficult for newcomer to get into this field and compete with [[Taiwan Semiconductors]] & other season player such as [[samsung technology]]
      • How profitable is [[semiconductor]] industries?
        • According to McKinsey, our of 254 [[semiconductor]] companies, the top 5 company have the largest combine annual profit compare with the rest. 
        • It’s a winner takes all enavironment. 
      • Trend that Drive the [[semiconductor]] demand.
        • The chip shortage experience this year was cause by unexpected high demand for [[electric Vehicle]]
        • The other demand also drive by [[5G]], Artificial intelligence [[AI]], & Internet of Thing [[IoT]]
        • The Gaming 🥌 sector also contribute the the demand. Games that demand for cutting edge chip for cloud & [[5G]] connectivity, and Virtual Reality [[VR]]
      • Sales of [[semiconductor]] chips is expected to grow at a compounded average growth rate (CAGR) of 10.7% 
        • above Graf shows Global semiconductor sales (USD billions)
        • Source: Eastspring Investments. 
        • Summerize by: http://www.adezenoso.com

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