Merrill Lynch Says Now’s Your Chance to Buy 4 Semiconductor Giants
For years, the semiconductors were big sector leaders, and with good reason. The increase in uses for a wide variety of chips in everything from cars to industrial to video gaming made demand jump. While the demand skyrocketed, so did the need for the machines that make and calibrate semiconductors. Last month the semiconductors and capital equipment stocks were shown the way to the woodshed, where they took a beating.
In a recent research report, Merrill Lynch noted that October data showed that the semiconductor weighting versus the S&P 500 held at a 1.1 times figure, compared with a much higher peak of 1.46 times in March of 2017. Versus overall technology, semiconductors are equal weight, and below electronic equipment, software and information technology services.
Bosch to invest a billion euros in new semiconductor factory
Every car nowadays makes use of semiconductors, and that has been true for quite a while. A key technology in today’s modern world, these chips are core components of electrical systems – including those in vehicles. They regulate the powertrain and vehicle handling, tell the navigational system which way the vehicle is going, and signal the airbag to deploy when needed.
Bosch has been making semiconductors for more than 45 years and at present is one of the leading manufacturers of chips for mobility applications worldwide. “Semiconductors may have been around for a long time, but we have yet to realise their full potential. These components are key to modern-day mobility, and it is impossible to imagine cars today without them,” said, Jens Fabrowsky, member of the executive management of Bosch’s Automotive Electronics division.
The company claims that in 2016, every vehicle newly registered worldwide had an average of more than nine Bosch chips on board. “When it comes to semiconductors for cars, we have a singular advantage: Bosch is the only company equally at home in both the automotive and semiconductor industries,” added Fabrowsky.
In 2018, every new vehicle featured semiconductors worth $370 dollars (Rs 27,026) (source: ZVEI), and thanks to increasing electrification and automation the demand for chips in vehicles is expected to rise further over the next few years.
Semiconductors for the auto industry The global semiconductor market is worth billions, and according to the market research company Gartner global semiconductor sales is expected to reach $ 451 billion (Rs 3,291,849 crore) in 2018. By 2019 alone, the market will have grown at an annual growth rate of more than 5 percent (source: PwC).
In the semiconductor market, the ultimate discipline is making chips for vehicles, and Bosch says it has been making vehicles smart since the 1970s, when it started equipping them with its application-specific integrated circuits (ASICs). In a vehicle, the chips are exposed to strong vibrations and extreme temperatures that range from far below zero to far above 100 degrees Celsius.
This require higher standards for the toughness of these special components. Developing semiconductors that can withstand these stresses for a vehicle’s entire lifetime is an intensive process. Bosch says it leverages its special dual role: while other companies can process the information collected from semiconductors, the company says it can also apply its deep understanding of the physical principles at work in the chips, and of how to gather the data and ultimately integrate it into the vehicle systems.
KESM has opened high with little volume in the last two trading days. What does it tell us? It means retailers are hungry to get into the bus. The strategy is to avoid KESM for now till it reached RM 10 support where most high chasers would be flushed out
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
dompeilee
11,888 posts
Posted by dompeilee > 2018-11-05 10:07 | Report Abuse
dompeilee Bought more @ 10.28 & 10.30
25/10/2018 15:56
SOLD @ the open this morning! Switch to panic sold Genting & Genm !!! =)))