Semiconductors

This industry designs and manufactures the integrated circuits and microchips that serve as the computing brains and memory for virtually all modern electronic devices.

Why it exists
Semiconductors process, store, and move information at the atomic level.

Why it’s necessary
They are the core of AI, cloud computing, vehicles, networks, and every digital device.

Key components

• Logic processors

• Memory chips

• Analog & RF devices

• Power semiconductors

How to evaluate businesses
Key drivers include process-node leadership, yield improvement, end-market exposure, capex discipline, and gross margin stability. The best firms combine R&D dominance with manufacturing scale.

How the industry could be improved
More resilient global manufacturing, chiplet-based architectures, lower-energy compute designs, and faster AI-specific optimization cycles.