Capital Ideas^TM

How fast things can change: there was a major shortage of semiconductors at the start of the pandemic, and now the industry is grappling with too much inventory in parts of the supply chain. This has led to a sell-off in semiconductor stocks and prompted questions about the depth and duration of this downturn. 

The US has also stepped up restrictions on shipments of semiconductors and related equipment to China. Meanwhile, the US and the European Union have laid out plans to reshore semiconductor manufacturing in the interest of national security, which is expected to have longer-term implications for industry efficiency and chip prices.

Investment analyst Shailesh Jaitly recently visited Taiwan, Japan and South Korea, where he met with company management teams and some key industry contacts. In this piece he covers his current ideas about the state of the semiconductor business.

 

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