chip industry

Wars, terrorist attacks, natural disasters – the more globalised a company's activities, the more drastic the effects of such exogenous shocks. The current political climate is therefore making forecasts in the chip industry increasingly uncertain.

Beijing's demand that domestic car manufacturers use more Chinese-made chips would be a blow to the strategies pursued by Western semiconductor manufacturers.

Due to escalating political tensions worldwide, the early-cycle semiconductor industry is more exposed than ever to exogenous shocks. This increased risk contributes to even greater volatility in the market valuation of semiconductor producers.