Semiconductors Sector Scorecard Q1 2024 Update - Thematic Intelligence

Companies scoring strongly in artificial intelligence (AI) and geopolitics-related themes lead the thematic screen of the publisher's semiconductors sector scorecard. Indeed, the AI, AI chips, geopolitics, and China impact themes jointly account for 50% of the weighting of the thematic screen, reflecting both the growing importance of AI, particularly generative AI, in the industry and the impact of the ongoing US-China trade dispute. Among the thematic leaders are companies with either advanced AI products, such as Nvidia, Amazon, Tesla, and Alibaba, or capital equipment technologies essential to manufacture those advanced AI chips, such as ASML.

The trade dispute between the US and China continues to escalate. Huawei’s Mate 60 Pro smartphone, launched in August 2023, appeared to include a Kirin 9000s chip manufactured by SMIC using a 7-nanometer process node. In response, the US tightened its export rules to include high-end deep ultraviolet (DUV) lithography machines. China may be starting to make progress on domestic production of advanced semiconductors, but until confirmed, the leading Chinese vendors, including Alibaba, Huawei, and Baidu, have weaker thematic scores than their US counterparts due to their limited access to AI chips and advanced semiconductor manufacturing technologies.

Scope

This sector scorecard provides a top-down, comprehensive outlook for the key players in the semiconductors sector over the next two years, based on the key themes set to transform their industry landscape.

Reasons to Buy

• Companies that invest in the right themes become success stories. Those that miss the important themes in their industry end up as failures.
• The thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
• The publisher has developed a unique thematic methodology for ranking all major companies in all major sectors based on their relative strength in the big themes that are impacting their industries.

Our thematic engine tags over 180 million data items across six alternative data sets-patents, jobs, deals, filings, social media, and news-to themes. The vast datasets within our thematic engine help our analysts to produce sector scorecards that identify the companies best placed to succeed in a future filled with multiple disruptive threats.