Boiling semiconductor stocks
2021 year month day (Sun) Rain
・Boiling Semiconductor Stocks: The Changing Winners Who Move the World Behind the Scenes
The semiconductor industry is abuzz with unprecedented demand. Just as the high-speed通信 standard "5G" has entered the practical stage, the global spread of the novel coronavirus has
drastically changed economic activities that relied on physical contact, with many communications shifting to online bases.
Demand for semiconductors used in data centers and other applications has surged.
Furthermore, with the global shift away from carbon, electric vehicles—the major source of CO2 emissions—have emerged as a long-term theme in focus.
Every crisis increases the need for semiconductors, and the view that "demand growth is structural" is spreading.
・Boiling Semiconductor Stocks: The Changing Winners Who Move the World Behind the Scenes
Automakers are pushed to reduce production due to semiconductor shortages.
The balance of power between final-product manufacturers, such as automakers and electronics manufacturers, and the semiconductor companies that supply the critical components is reversing.
Semiconductors have properties between conductors like metals and insulators like rubber.
Humankind has drawn fine electrical circuits on silicon, the representative semiconductor, and evolved it as the brains of numerous devices.
When supply is tight, prices rise, and when production expands beyond demand, overcapacity leads to lower utilization and manufacturer losses—a well-known “silicon cycle.”
・Boiling Semiconductor Stocks: The Changing Winners Who Move the World Behind the Scenes
According to the British research firm IHS Markit, the global semiconductor market contracted 29% in 2001 after the IT (information technology) bubble burst,
and shrank 11% again in 2009 after the Lehman Brothers shock.
However, with market structure changes, the view that the cycle will soften has become widespread.
The Philadelphia Semiconductor Index (SOX), which is composed of major U.S. semiconductor stocks, rose by 50% in 2020.
Despite a pullback as long-term interest rates rise, it remains more than 60% higher than at the end of 2019.
IHS Markit predicts that the global semiconductor market will exceed $5 trillion for the first time in 2022.
・Boiling Semiconductor Stocks: The Untold Story of Semiconductors in an Unforgiving Power Struggle
5G, EV, IoT... The semiconductor market is entering an unprecedented growth phase due to expanding new applications.
Taiwan Semiconductor Manufacturing Co. (TSMC) stock price has risen 80% since the end of 2019, and Nvidia has surged 2.3 times.
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