Introduction To Semiconductor Industry
with some basic technical stuffs explained
Semiconductor Industry 101
Industry Overview & Technical Prerequisites
Wikipedia had done a good job introducing the industry.
Investopedia also provided this and this articles that I think will greatly help.
The below videos are also very well make that will help you to grasp the basic concepts better than any words can describe.
Samsung’s Semiconductor Dictionary playlist is very good if you want a bit more of technical understanding of the industry. Some of the “must-watch” videos are:
For the “true hardcore” semiconductor enthusiast, I recommend Asianometry’s Semiconductor "Course". If you find this “easy”, then I think you are 200% technically capable to invest in this sector. Some “must-watch” videos
Industry Breakdown
Below is the very broad classification of the major players in the semiconductor industry, based on their positions in the value chain.
Please note that many companies have >1 businesses, so the list may be “technically incorrect” in a certain degree.
I recommend you to watch the videos & read the articles below for more details about the industry at a glance.
Semiconductor Geopolitics
Semiconductor is now one of the most “intense battlefield” of the “New Cold War” between US and China.
The videos below covered very well the most important things that I think semiconductor investors must know.
Interesting enough, the current rise of China have many similarities with the rise of Japan after WW2. Below are a brief recap of Japan’s economic rise (for people who need) & the focus on the semiconductor industry
Industry’s Most Important Companies
IT Hardware
PC / Computing Hardware: INTC, AMD, NVDA
Server Hardware: ORCL, VMW, HPE, SMCI, PSTG, NTAP
Networking Hardware: CSCO, JNPR, ANET, CIEN, UI, MSI
Digital Electronics
Memory Hardware (SSD): Samsung, SK Hynix, MU, Kioxia, RMBS
Memory Hardware (HDD): STX, WDC, Toshiba
Semiconductor Fab / Manufacturing: TSMC, UMC, GFS, SMiC
Semiconductor Equipment Suppliers (Manufacturing): ASML, AMAT, LRCX, KLAC, Tokyo Electron, ASM International, ACLS
Semiconductor Equipment Suppliers (Testing & Others): TER, Advantest, KLIC, FORM, ENTG, UCTT, Siltronic, Soitec
Assembly / Packaging: Foxconn, AMKR, ASX, KLIC, Pegatron, Wistron
“Low Profile” ICs / Components: HIMX, SIMO, PLAB
Industrial Electronics
Industrial Controllers: STM, MCHP, SLAB, LSCC, HIMX
Analog IC / Devices: TXN, ADI, ON, VSH, TSEM, WOLF, DIOD, SMTC
Industrial Analog Devices: NXPI, Infineon, TEL, MPWR,
RF Electronics: AVGO, QCOM, MediaTek, QRVO, SWKS, MTSI, MRVL, CRUS
EMS: JBL, SANM, CLS, FLEX, BHE, PLXS
Resources to learn more about the industry
Youtube Channels
Asianometry (and his Substack)
Substacks
Technical Updates / Readings
Highlight of the most high-profile companies
Intel
Once considered an undisputed leader in the PC hardware industry, Intel is now current struggling to compete with AMD and Nvidia in all of their business.
Story of company’s rise and struggle is well captured in the videos below
For analysis of Intel’s product technical competitiveness, please watch the videos below (there are some overlaps, but I think it’s worth it to watch all of them)
Intel’s biggest lost in the last few year was to lose Apple as a very big customer. In a recent move, their new CEO plan to save the company by expanding new fabs to the US
AMD
Once a competitor that seem to be forever behind its arch rival Intel, AMD had undergo a spectacular transformation under CEO Lisa Su to become the world’s leader in PC chip.
Story of company’s history & incredible comeback is well captured in the videos below
For some basic technical coverage of AMD’s technical success, please watch the videos below
Nvidia
Started as a graphic card provider, Nvidia is now currently the highest market-cap (albeit quite overvalued, as of Mar 23) semiconductors companies, the world’s leader in GPU, Machine Learning Hardware & many more.
Story of company’s development is well captured in the videos below
For some basic technical coverage of Nvidia’s technical success, please watch the videos below
TSMC
TSMC is the pure play manufacturers with the ability to produce the most advanced chips in the world.
Story of company’s development is well captured in the videos below
For some basic technical coverage of TSMC’s technical success, please watch the videos below
ARM
The company responsible for chip “IP”
For some basic technical coverage of ARM’s technical success, please watch the videos below
ASML
ASML is the sole supplier (monopoly) semiconductor equipment supplier providing EUV lithography machines.
Story of company’s development is well captured in the video below
For some basic technical coverage of ASML’s technical success, please watch the videos below
Samsung (Electronics)
Samsung is Korea’s largest conglomerate (or “Cheabol” in Korean) with footprint in virtually every key industry of Korea: Heavy Industry, Construction, etc.
Samsung Electronics is the company’s arm in the semiconductor industry, with business in smartphone, memory devices, home appliances & many more
Story of company’s development is well captured in the videos below
Foxconn
Foxconn is the world’s most well know “electronic assembler”, responsible for the production of iPhone.
Story of company’s development is well captured in the videos below
Carl Zeiss
Zeiss is the sole supplier (monopoly) of the lithography systems required to make ASML machines.
Story of company’s development is well captured in the videos below
Others
Notable Non-Chinese Semiconductor Companies
China & Taiwan Semiconductors / Electronics Companies