Discover Concentrations In Industry Supply Chains: Semiconductors

The boom in AI has focused market attention on semiconductors. Nvidia has emerged as a clear leader in the space with its stock gaining 239% this year. 

Using Capnote, we can easily look across the semiconductor value chain to find the most common suppliers and customers of the largest semiconductor companies. 

Methodology: To do this, we created a portfolio on Capnote and included the below list of large US semiconductor companies (data as of 4 Sept 2023). After building the portfolio, we clicked on Sensitivities and selected suppliers and customers from the drop down list.

Top Suppliers: The below extract from Capnote shows the 3 the most common suppliers to the largest US semiconductor companies.

  • PDF solutions supplies big data analytics for semiconductor manufacturing and supplies 11 of the 15 largest semiconductor companies including names like Nvidia and Broadcom. Its stock is up +47% year on year.  With market cap of $1.4 billion, it appears to have room to grow.
  • Amkor Technologies provides semiconductor packaging and test services to 8 out of the 15 semiconductor companies in our portfolio. Its stock is up +49% year on year. With market cap of $6.9 billion and dividend yield of 1%, it is worth researching further. 
  • Taiwan Semiconductor Manufacturing provides contract manufacturing and design services to 7 out of 15 constituents of the portfolio. Its stock is up +16% year on year. With market cap of $445 billion, its the largest supplier on the list and also pays a 2% dividend. 

Top Customers: The below extract from Capnote shows the 3 most common customers of the largest US semiconductor companies. 

Notably, Apple, Samsung and Intel are amongst the largest electronics companies in the world with year on year stock growth of +22%, +23% and +21% respectively Their size and strong credit quality make them beneficial customers for any semiconductor firm to have. 

Try discovering industry value chain concentrations for yourself by signing up to Capnote for free and building a themed portfolio. 

Written by Ikenna Ene

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