Macro Minutes: Performance Drivers for Semiconductors

Key Points

  • Accelerated chip demand during the pandemic and supply chain issues led to stronger pricing power and margin expansions for chipmakers.
  • From an investment perspective, not all semiconductor companies are created equal. Semiconductor companies may design, manufacture or provide infrastructure for chip production.
  • Semiconductor margins meaningfully expanded over the years due to specialised equipment and complexity in technology.
Investing in financial markets involves a risk of loss and there is no guarantee that all or any invested capital will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.