Semiconductors find important applications in countless electronic products used daily by people around the world. Integrated circuits, microprocessors, transistors, and diodes are some of the many critical components that heavily rely on semiconductors.
One of the core reasons behind the usage of semiconductors lies in their unique properties. They are neither good conductors like metals nor insulators like glass. Instead, they have a resistivity which lies in between these two extremes. This property makes them exceptionally useful for controlling electrical current. Furthermore, semiconductors can change their conductive properties based on factors such as temperature, light, and even the presence of minute impurities.
Today, the semiconductor industry is witnessing a tremendous growth trajectory. Driving this growth are diverse factors starting from our increasing reliance on digital technology to the fast-rising popularity of electric vehicles. The pandemic has necessitated a shift to remote working, thereby increasing our dependence on cloud technology. This, in turn, drives the demand for more powerful, efficient servers which cannot function without advanced semiconductors. Additionally, the surge of electrification within the auto industry has pushed the demand for power semiconductors.
Despite these favourable factors, the semiconductor industry has been facing certain challenges. For instance, the ongoing global chip shortage crisis has sent ripples across various industries, revealing our vulnerability to semiconductor supply disruptions. The high demand for semiconductors, coupled with supply chain disruptions due to the COVID-19 pandemic, has resulted in the current shortage.
In the face of these challenges, various global tech giants are working towards being self-reliant for their semiconductor requirements. One such move is seen by Apple with the introduction of their own M1 chips. Many companies are also investing heavily in the semiconductor industry, while countries are building domestic semiconductor manufacturing capacities. This is particularly true with countries in the Asia-Pacific region, such as Taiwan and South Korea, which are home to some of the world’s biggest semiconductor manufacturers like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung.
With attractive growth prospects alongside the challenges faced by the industry, the semiconductor sector has attracted keen interest from investors. The trading room serves as a place where investors can gain valuable insights into both the long-term trends and daily fluctuations of various semiconductor stocks. It offers services such as frequent and up-to-date news from the industry, daily analysis of the trading scene, and a community of traders where one can share, learn, and discuss trading strategies and ideas.
To summarise, semiconductors play a crucial role in our digital lives, and their importance will only continue to grow in the future. As the semiconductor industry is set to evolve further, it would be interesting to watch how the sector reshapes itself to meet the future demands in technology. Despite the present challenges, the semiconductor industry’s growth and essentiality make it a valuable addition to the portfolios of discerning investors.