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In these times of acute stock market turmoil, it becomes important to step back and think about strategy and how to take advantage of secular trends. One of them is the deglobalization of the supply chain as the
Fujimi And Siltronic: Two Of Intel's Suppliers To Put On Your Watchlist
Summary
- Silicon wafers are the foundation of the semiconductor industry, with Siltronic producing them and Fujimi making the equipment to polish them.
- Both companies have benefited from high sales volumes, better pricing, together with currency tailwinds since the beginning of this year.
- However, in view of demand concerns raised by some of the major semiconductor plays including Intel, and some recent U.S. government restrictions aimed at China, it is important to exercise caution.
- In view of their cash positions and low debt, I consider the German and the Japanese companies as hold, despite the former exhibiting favorable valuations.
- Both companies should be on investors' watchlist.
As a tech-focused industry Research Analyst, I aim to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher from the financial sector, but, I come from the IT world as the Director of Keylogin InfoTech and my insights are based on my own experience investing for 25 years.Also, my research is often backed by analytics and I make frequent use of charts to support my position.Based on losses during the GFC, I am often moderate and focus more on the direction and look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I like to write around themes like automated supply chains, Generative AI, telcos Capex, the deflationary nature of software, semiconductors, etc. and I am often contrarian. I also cover biotechs with more of a "techbio" focus.I have also been an entrepreneur in real estate ( a mediocre one), a business owner, and a farmer, and dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I help needy families by providing sponsored work and contributing peer reviews and opinions for enterprise tech.My investment journey started in mutual and indexed funds before later opting for individual stocks. Got a lot of experience in the 2008/2009 crash when I lost a lot due mostly to wrong advice. Since then I have done my research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best analysts.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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