Investors seeking to grow their wealth over the next decade should include semiconductors in their portfolio, according to deVere CEO Nigel Green.
It follows an escalating, trillion-dollar battle between rival powerhouses the US and China, with the Chinese government recently announcing that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China.
Meanwhile, the Japanese government has overhauled its chip strategy to triple sales of domestically-produced semiconductors to over $108 billion by 2030 and France has vowed to invest $3.1 billion of public money into a factory to make microchips.
Green says: “Semiconductors are tiny, but these mighty chips power our world. They are fuelling this current industrial revolution. Semiconductors are at the forefront of technological progress. As our reliance on electronic devices continues to grow, the demand for semiconductors is skyrocketing – and will continue to do.
“From smartphones and computers to automobiles and advanced infrastructure, semiconductors are indispensable in powering our daily lives. This ever-increasing demand has created a fiercely competitive market, with companies vying to capture larger market shares and gain technological superiority.”
In addition, Green says semiconductors have also become critical strategic assets, vital for national security, defence applications and emerging technologies such as artificial intelligence, 5G and the Internet of Things.
Against this backdrop, Green believes investors building wealth for the long-term should include exposure to chips in their portfolios. However, he warns that investors will need to seek advice, particularly amid geopolitical tensions and economic considerations.
He adds: “With every boom, there will be winners and losers. A good fund manager will be critical in helping you make informed decisions.
“Semiconductors will remain a fiercely contested battleground for market dominance and technological advancements. Their strategic importance is what makes them such an attractive, a potentially hugely rewarding, proposition. Savvy investors keen to build wealth over the next decade.”
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