Technology, Integrated Circuitry, and The Global Opportunity

There’s no doubt that technology plays a big part in our lives. It keeps us connected, helps us stay informed, and entertains us. But did you know that it also has a hand in the economy? The Microchip shortage is a perfect example of how technology can have an indirect impact on our everyday lives. Microchips are a vital component in many electronic devices, from smartphones to laptops to cars.

Microchip makers are struggling to keep up with demand as more and more companies adopt new technologies that require these tiny chips. This newfound demand for the, now unobtainable, microchip has brought attention to not only the major chipmakers but also smaller players, in the integrated circuitry industry, that sometimes get overlooked. While Silicon valley in the United States contains some of the largest chip-making conglomerations. Our new age of technology has a global impact that could uncover some diamonds in the industry outside of the American border.

Microchips are tiny components that play a big role in our electronic devices.

They’re responsible for processing information, storing data, and carrying out complex tasks. Microchips are found in just about everything that has the “smart” adjective appended to its name. smart tv’s, smart appliances, smart cars, and the list goes on and on. As we continue to adopt new technologies, the demand for microchips has increased dramatically. This shortage has affected both consumers and businesses alike. Many companies have had to halt production due to the lack of these vital components. This, in turn, has led to higher prices for devices that require microchips. It has also created an insatiable appetite for this handy piece of technology worldwide.

The Microchip shortage started in 2018, when Microchip makers began struggling to keep up with the demand for Microchips. The problem was exacerbated by the COVID-19 pandemic, as Microchip factories were forced to close or operate at reduced capacity. This has led to a shortage of Microchips, which has affected everything from smartphone production to the development of autonomous vehicles.

Integrated circuitry stocks have been on the rise in recent years, as the demand for Microchips continues to grow.

If you’re looking for an investment opportunity, Microchip stocks may be a good option. Microchip makers are also working on new technologies that could lead to even more demand for Microchips in the future. With this high demand for integrated circuitry, many manufacturers will be willing to get backordered microprocessing cards from whichever supplier can get them the items the fastest or first, for their production line to keep moving. And now the doors open to alternative suppliers in different regions of the world, and to smaller companies in America that can help meet this never-ending demand.

The demand for microchips has been skyrocketing, but the supply has not been able to keep up.

This is bad news for many industries that rely on microchips, but it could be good news for investors. Microchip makers outside of America are performing well, and there may be opportunities for investment in these companies, and smaller companies within America that produce integrated circuitry.

Nvidia Corporation NVDA always tops my list. Although their recent negotiations to merge with ARM, a chip designer based in the UK, hit a snag, their willingness to spend $40 billion to make the deal happen shows how serious their interest is in being a global force in the circuitry supply chain.

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Taiwan Semiconductor Manufacturing Company Limited TSM is the largest producer of semiconductors in the world, which most likely means they have the largest number of backorders to fill. TSM is located in Taiwan. In the heart of Asia’s Silicon Valley. A company that is at the forefront of microchip manufacturing and it plays a vital role in the global supply chain for microchips. Investors have been closely watching TSMC as the company looks to boost capacity and meet the demand. The company is well-positioned to benefit from the growing demand for microchips.

TSM

Chart courtesy of Yahoo

TSMC is an exciting investment opportunity in the microchip space. With strong fundamentals and a leadership position in the industry.

Then there’s a little guy I came across researching this opportunity named Hana Microelectronics Public Company Limited, located in Thailand. This stock followed the trend and doubled in price. It also retreated when the big boys fell. It seems it follows the same trend parameters as the leading semiconductor manufacturers. One thing I found appealing about this stock is its price, 47.5 Thai Baht is equal to about $1.39 at the time of this writing. A less expensive option for those willing to test this investment opportunity from an Asian base.

HANA Prices in Thai Baht

Chart courtesy of Yahoo

The big boys and the smaller players in the integrated circuitry arena all tend to follow the same price fluctuations. With the bearish market presently in play, many of these multi-billion dollar chip makers as well as the multi-thousand dollar chip producer’s stock prices may be at attractive levels for buying in. Advanced Micro Devices, Inc. (AMD) and Marvell Technology, Inc. (MRVL) are two names of smaller but substantial chip makers within the United States that we should also give our attention to. We’ll talk more about them in future articles.

New to finwars? read more about Microchips here