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Highlights
- Since the pandemic started semiconductor chip companies have been in the spotlight due to increasing demand but supply shortage.
- The shortage of semiconductor chips is hurting various industries and has caused manufacturers to delay productions.
- But now industry insiders feel the shortage may ease in 2022 and production may go back to normal.
Since the pandemic started, semiconductor chip companies have been in the spotlight due to increasing demand. Despite manufacturers increasing the production, there was a serious shortage of semiconductor chips, which hurt various industries, like car manufacturers who depend on semiconductor chips for minute things like interior lighting to seat control to blind-spot detection.
As per estimates of LMC Automotive, manufactures could have made at least 9.6 million more cars in 2021 but due to the supply crisis the manufacturers suffered. The top 3 worst affected companies were Ford, which fell short of 1.26 million units globally, the Volkswagen Group fell short by 1.15 million units, and General Motors by 1.09 million units.
Not just car companies, these electronic circuits are used in powering a wide range of products such as smartphones, computers, electronic gadgets, and TVs. These chips are mostly made from silicon and are a vital component in electronic goods. Due to complexities in the chip production process, the manufacturers had to delay productions, prioritize certain models, and even close plants down.
But now industry insiders feel the shortage may ease in 2022 and production may go back to normal.
Let us look at five FTSE listed semiconductor stocks that you may consider diversifying your portfolio.
- CML Microsystems Plc (LON: CML)
CML Microsystems Plc is engaged in designing and manufacturing of semiconductor solutions such as radio frequency (RF), mixed-signal and microwave semiconductors for the global communication market.
It has given a return of 30.88% to its shareholders in the last one year and its year-to-date return stands at -6.17% as of 15 February 2022. Its shares were trading at GBX 385, down by 1.28%, at 11 AM (BST), with a market capitalization of £64.73 million on 15 February 2022.
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- Oxford Instruments Plc (LON:OXIG)
Oxford Instruments Plc is a manufacturing and research company that is engaged in designing and manufacturing of tools and systems for industry and research.
The FTSE 250-listed company has given a return of 1.50% to its shareholders in the last one year and its year-to-date return stands at -22.43% as of 15 February 2022. Its shares were trading at GBX 2,040, up by 0.49%, at 11 AM (BST), with a market capitalization of £1,170.17 million on 15 February 2022.
- IQE Plc (LON: IQE)
IQE Plc is leading global manufacturer and supplier of advanced epitaxial wafers and material solutions to semiconductor sector. The company serves consumer mobile, automotive, aerospace & defence, cloud, healthcare, 5G network infrastructure, networking & IoT and industrial market across the US, Asia, and Europe.
IQE Plc has given a return of -57.29% to its shareholders in the last one year and its year-to-date return stands at 2.75% as of 15 February 2022. Its shares were trading at GBX 35.50, down by 2.16%, at 11:00 AM (BST), with a market capitalization of £279.44 million on 15 February 2022.
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- Samsung Electronics Co Ltd (ATT) (LON: SMSN)
Samsung Electronics Co Ltd is a South Korean-based multinational electronics manufacturer. The company operates through four main segments that include consumer electronics, technology & mobile communications, the device solutions, and the Harman.
Samsung Electronics Co Ltd has given a return of -18.01% to its shareholders in the last one year and its year-to-date return stands at -5.97% as of 15 February 2022. Its shares were trading at GBX 1,550.25, up by 0.31%, at 11 AM (BST), with a market capitalization of £273,129.04 million on 15 February 2022.
- Electrocomponents Plc (LON: ECM)
FTSE 100 constituent Electrocomponents Plc offers industrial and electronic products across EMEA, Asia Pacific, and Americas. Electrocomponents Plc has given a return of 4.90% to its shareholders in the last one year and its year-to-date return stands at -13.85% as of 15 February 2022. Its shares were trading at GBX 1,039, up by 0.97%, at 11:10 AM (BST), with a market capitalization of £4,846.51 million on 15 February 2022.
