Email of the day - on supply inelasticity in chip supply
Comment of the Day

June 11 2021

Commentary by Eoin Treacy

Email of the day - on supply inelasticity in chip supply

Should I prefer longs in the European chip companies including machine manufacturing companies like ASML (almost a monopolist), ASML and Besi and chip producing companies like INFINEON or STM or the US companies like NVDIA, INTEL, AMD, QUALCOMM?

Should we consider the expected weakening usd while comparing? Especially chip machine producing companies should have a very bright future when both the US and Europe want to produce more chips themselves with a shortage of machines and chips for the foreseeable future it is unlikely any price discounts will be given interesting isn't it? kind regards

Looking forward as always to your long-term video have a nice weekend

Eoin Treacy's view

Thank you for this kind email and I am delighted you are enjoying the videos. Semiconductors have become a nationalist priority as a result of the current shortage, the drought in Taiwan which questions the ability to increase supply, and geopolitical tensions. These factors have highlighted short-term thinking that was behind the migration of domestic European manufacturing to Asia, over the last couple of decades.

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