The semiconductor value chain refers to the various stages involved in the production and distribution of semiconductor devices such as microprocessors, memory chips, and sensors which are used in a wide range of electronic devices, including smartphones, computers, and automobiles.Its 6 segments are presented below, in descending order, along with a list of the constituents in each Portfolio. Those with returns this week of +5% or more and -5% or more are boldfaced, and accompanied by any pertinent news, analyses and commentary.
- Segment Focus: assembles chips into finished semiconductor components and tests for defects
- Constituents: ASX; AMKR (+5.1%)
- Pertinent news, analyses and commentary:
- Amkor Technology (AMKR) Advances
- Segment Focus: designs, manufactures, and sells its own semiconductor products to allow them to control the entire production process, from design to fabrication, resulting in greater efficiency and quality control.
- Constituents: INTC (+7.7%); STM; IFNNY; MU; MCHP; ADI; TXN; NXPI
- Pertinent news, analyses and commentary:
- Why Intel Stock Popped
- Segment Focus: concentrates all its efforts in the manufacturing of chips based on designs provided by other semiconductor companies which allows it to specialize in manufacturing processes and technologies
- Constituents: TSM; GFS; UMV; TSEM
- Segment Focus: designs and sells hardware devices and semiconductor chips while outsourcing their fabrication (or fab) to a specialized manufacturer
- Constituents: AVGO; AMD (+5.6%); NVDA; QCOM; MRVL; MPWR
- Pertinent news, analyses and commentary:
- AMD Stock A Buy Ahead Of Chipmaker’s Q2 Earnings Report
- AMD signs $665m deal to acquire Silo AI
- Segment Focus: provides essential equipment for manufacturing semiconductors such as lithography machines, etching, test and packaging equipment, automation and inspection systems and production materials such as chemicals, gases, wafers and packaging
- Constituents: ENTG (4.6%); ASML; KLAC; LRCX; AMAT
- Pertinent news, analyses and commentary:
- A Look at Entegris and Its Peers
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- Segment Focus: uses electronic design automation (EDA) software to assist engineers in the custom design and development of complex chips
- Constituents: CDNS; SNPS
SummaryOn average, the above 6 segments went up 0.5% this week compared to a 0.3% increase in the Nasdaq and are now up 38.6% YTD vs. the Nasdaq which is “only” up 23.9% YTD. Understanding the semiconductor value chain and the companies involved in it is crucial for anyone interested in technology and its impact on the global economy.More By This Author:A Comparative Analysis Of The 12 Largest Cannabis Companies Puts Green Thumb #1
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4 Of 6 Semiconductor Portfolios Outperformed The Nasdaq This Week
