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As the golden age of semiconductors begins, it is expected that Intel, TSMC, ASML, AMD, and Nvidia will benefit. It is analyzed that the recent semiconductor supply shortage is due to structural factors and will lead to improvement in industry performance.
Weatherbush analyst Matt Bryson said in an interview with CNBC on the 25th (local time), “I think the next two or three years will be the golden age of semiconductors.” He recommended stocks such as Intel, saying, “The shortage of semiconductor chips will continue.”
He cited the rapid increase in electronic product purchases following the introduction of 5G as the reason for the shortage of semiconductor supply. “This happened sooner than expected,” Bryson said.
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Second, there is not enough supply capacity to meet that demand. About 80% of the world’s semiconductors are produced in Asia, with the US making 15% and Europe making about 5%.
Intel announced this week that it would invest $20 billion to build a new foundry plant in Arizona. “Intel is doing the right thing,” Bryson said. “I think it’s going to cost a lot of money and negatively impact profitability, but it’s going to be an opportunity to go back to the best Intel in the past 3 to 5 years.”
Since Intel’s announcement, the share price of TSMC, the world’s number one foundry industry, has fallen by about 4%. Bryson analyst said that if TSMC’s stock price falls, it should be viewed as an’opportunity’. This is because it is expected that the foundry capacity shortage will continue globally over the next two to three years.
Despite the current supply shortage, semiconductor prices have not risen significantly. “Semiconductor foundry contracts tend to be long-term, so I don’t think the price hikes have been in full swing,” Bryson analyst said.
Bryson saw Intel’s $20 billion investment plan as positive for the equipment industry. Intel plans to spend a lot of money on extreme ultraviolet lithography (EUV) to make semiconductors. “Intel’s EUV investment is expected to be good for ASML producing EUV,” Bryson analyst said.
Bryson also predicted that Nvidia and AMD, which make graphics chips for computers, will perform very well.
Reporter Kim Hyun-seok [email protected]
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