Semiconductor Industry News

[BlueKelah]

Value investors receive their training by looking at the "supply side" of the capital cycle. Has semiconductors escaped this inevitably or history will rhyme again?

In the Middle of Transition: 2022 Semiconductor Outlook

A strongly held belief I have is that semiconductors are in the middle of a new golden age. I think that most of my readers would agree. But something that’s always concerned investors is the industry’s cyclicality. Of course, it worries me, too, but as the “chip shortage” has gone on longer and longer I’ve pretty much concluded that no one knows when it will end, and in many ways, this would be exactly what the shift from a cyclical industry to a secular market would look like. Let me explain.

Semiconductors seem to have swapped from a supply-driven industry to a demand-driven industry since the pandemic. That, to me, is the big key of what the cyclical-to-secular market would look like. Additionally, semiconductors actually grew through a recession, which is pretty telling for the secular argument.

https://www.fabricatedknowledge.com/p/in...ition-2022

we are now in transition into EVs which i think is the main contributing factor to high chip demand next 5-10years. 5G and more smart devices are also increasing in demand as we get more and more new homes with smart features.

Depends on how much capacity china is bringing online I guess. They are pushing hard for wafer fabs now, thats why companies like AMAT is doing well as they provide the wafer fabs with the machines to make chips (UMS also doing very well)

If china's new fabs suddenly all start producing in 5 years time we could get a glut of supplies then. But for next 2-3 years probably this sector will continue to outperform.