Opportunities across the Semiconductor industry

William van der Weyden
Semiconductor chips are some of the fundamental building blocks for progress in technology. And this is true across industries and applications. End customers are continually demanding more complex, high performing and efficient chips. All to innovate and improve their own product lines. 

Because of this, we see a strong pathway to long term growth within the industry. To add a bit more colour, I can give an example within the autos industry. If we take a standard car today with an internal combustion engine. This has around $600-$700 of semiconductor chips plumbed in and an electric vehicle has nearly double this. So not only are we going to see a mix shift towards EV's, but other technologies such as autonomous driving systems are expected by 2030 to drive chip content closer to $2,000. 

This trend of increasing chips per device is not unique to autos, but many applications, renewable energy and data centres to name a few. 

Clearly this will be to the benefit of both chip designers and foundries in terms of increasing demand. 

If we look up the stream, semiconductor equipment manufacturers will need to supply the equipment to service, both increasing complexity and capacity requirements. We've seen significant investment across the market and at the end of 2023, there are around 50 new semiconductor fabs or factories being built globally. And we're now expecting hundreds of billions of dollars in CapEx across the industry between now and the end of the decade. So semi equipment firms are also very well-positioned to benefit. Looking across the opportunity set, there are a number of very high quality competitively advantage and growth orientated companies across the whole value chain.