Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Marketing information.
Semiconductors and computer chips form the invisible backbone of our digital world. They are found in everyday technology such as smartphones, fridges and cars. Specialised chips also play a key role in the development of artificial intelligence (AI), 5G mobile networks and electromobility.
The manufacture of computer chips is complex, which is why companies often focus on individual steps in production.1 Chip designers such as Apple, Nvidia or Qualcomm, for example, do not have their own chip factories (fabless). They are therefore dependent on contract manufacturers (foundries) such as the Taiwanese group Taiwan Semiconductor Manufacturing (TSMC) or GlobalFoundries.2
There are also integrated device manufacturers (IDMs) that take over all production steps from design to manufacture themselves. Examples include Intel, Infineon, Samsung and Texas Instruments.3 Some IDMs, such as Samsung and Intel, offer contract manufacturing for other companies - in other words, they compete with pure foundries.4
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.
Due to the ongoing digitalisation in all areas of life and technological progress, the demand for semiconductors is constantly increasing. The US market research company Gartner expects global sales of semiconductors to increase by 17 per cent year-on-year to USD 624 billion in the current year.5
There is no guarantee that any forecasts made will come to pass.
The semiconductor industry is heavily dependent on the global economy. Trade conflicts and unexpected supply bottlenecks could put a damper on the industry in the short to medium term. In addition, there is always the risk that a new generation of chips will disrupt the existing semiconductor market and turn today's winners into tomorrow's losers. Another aspect that should be considered when investing in the semiconductor sector is the reorganisation of supply chains. This in turn could offer investment opportunities for investors.
There are various ways to invest in the chip industry:
Sources
This document is marketing material. Before investing please read the Prospectus and the PRIIPs KID available on www.ishares.com/it, which contain a summary of investors’ rights.
Risk Warnings
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.
Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time and depend on personal individual circumstances.
Regulatory Information
In the European Economic Area (EEA): this is issued by BlackRock (Netherlands) B.V. is authorised and regulated by the Netherlands Authority for the Financial Markets. Registered office Amstelplein 1, 1096 HA, Amsterdam, Tel: 020 – 549 5200, Tel: 31-20-549-5200. Trade Register No. 17068311 For your protection telephone calls are usually recorded.
In Italy: For information on investor rights and how to raise complaints please go to https://www.blackrock.com/corporate/compliance/investor-right available in Italian.
Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.
This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.
© 2024 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
Risk Disclaimer – There are risks associated with investing. The value of your investment may fall or rise. Losses of the capital invested may occur. Past performance, simulations or forecasts are not a reliable indicator of future performance. We do not provide investment, legal and/or tax advice. Should this website contain information on the capital market, financial instruments and/or other topics relevant to investment, this information is intended solely as a general explanation of the investment services provided by companies in our group. Please also read our risk information and terms of use.
