Lam Research Eyes Vietnam To Diversify Supply Chain Away From China: Report
Portfolio Pulse from Anusuya Lahiri
Lam Research Corp is considering diversifying its supply chain to Vietnam from China due to U.S. export controls affecting its business. The company discussed a $1 billion investment in Vietnam with the Prime Minister, aiming to reduce reliance on China, which represents 26% of its income. Despite no immediate expansion plans in Vietnam, Lam Research is exploring collaborations, notably with Seojin in South Korea. Meanwhile, Intel Corp has halted further investments in Vietnam, citing power supply and bureaucracy concerns. Lam Research's stock has surged over 94% in the last 12 months, with exposure through ETFs like SEMI and BUL.
March 22, 2024 | 9:45 am
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Intel Corp has halted further investments in Vietnam, citing concerns over power supply stability and excessive bureaucracy, which could impact its operational and expansion strategies in the region.
Intel's decision to halt investments in Vietnam could signal challenges in the region, potentially affecting its growth and operational efficiency in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Lam Research's stock performance, with over 94% surge in the last 12 months, is accessible to investors through Pacer US Cash Cows Growth ETF.
Investing in ETFs like BUL, which includes Lam Research, offers investors a way to participate in the company's significant stock performance and sector growth.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Lam Research is exploring supply chain diversification to Vietnam from China due to U.S. export controls, with a potential $1 billion investment discussed. Despite no immediate plans for expansion, the company's strategic shift aims to reduce reliance on China.
Diversifying supply chains away from China could mitigate risks associated with U.S. export controls, potentially improving Lam Research's operational stability and investor sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Investors can gain exposure to Lam Research's stock, which surged over 94% in the last 12 months, through Columbia ETF Trust I Columbia Seligman Semiconductor And Technology ETF.
The ETF's exposure to Lam Research, amid its strategic diversification and stock performance, could attract investors looking for semiconductor and technology sector growth.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70