Taiwan Semiconductor Leads Foundry Market, Samsung and Intel Ramp Up Advanced Process Efforts: Report
Portfolio Pulse from Anusuya Lahiri
Taiwan Semiconductor Manufacturing Co (TSM) leads the global foundry market with a 62% share, driven by strong AI demand and plans to increase production capacity and prices. Samsung Electronics (SSNLF) and Intel Corp (INTC) are also advancing in semiconductor technologies. TSM's stock rose 80% in the past year, while Intel's fell over 40%. Investors can consider ETFs like SPDR S&P Semiconductor ETF (XSD) and ProShares Ultra Semiconductors (USD) for exposure.
August 27, 2024 | 1:11 pm
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POSITIVE IMPACT
Taiwan Semiconductor leads the foundry market with a 62% share, driven by AI demand. Plans to increase production capacity and prices could enhance profitability.
TSM's dominant market position and strategic plans to increase production capacity and prices are likely to boost its profitability and market share, positively impacting its stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Samsung Electronics holds a 3% market share in the foundry market and is advancing in AI and HPC applications, focusing on 2nm process technology.
Samsung's advancements in AI and HPC applications are strategic but its smaller market share compared to TSM limits immediate impact on its stock price.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
ProShares Ultra Semiconductors ETF offers leveraged exposure to the semiconductor sector, including TSM and Intel.
USD provides leveraged exposure to the semiconductor sector, which can amplify gains or losses depending on market conditions.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
SPDR S&P Semiconductor ETF offers exposure to the semiconductor sector, including companies like TSM and Intel.
XSD provides diversified exposure to the semiconductor sector, balancing the positive outlook for TSM with challenges faced by Intel.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Intel plans to introduce 1.4nm processes by 2027 but reported a modest 0.9% growth in Q2, trailing analyst estimates. Plans to downsize workforce by over 15%.
Intel's modest growth and workforce downsizing indicate challenges, likely leading to negative short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80