Global multi-asset investment company eToro has reportedly launched a portfolio that allows investors to support companies crucial to the manufacturing and commercialization of semiconductors.
Semiconductors, commonly known as chips, are crucial components integrated into thousands of daily electrical products. This includes computers, smartphones, medical equipment, electric vehicles, gaming hardware, and home appliances.
This chip-tech portfolio supposedly includes 35 companies, that are important on different levels in the semiconductor domain.
Head of Portfolio Investment at eToro, Dani Brinker, apparently commented that semiconductors are responsible for the functionality of various electrical devices, right from airplanes to wristwatches. In essence, modern lifestyles cannot exist without semiconductors.
Chip designers and manufacturers are less visible than many of the consumer electronics brands that count on chips in their products. Investors have been noticing their importance to the global tech sector for some time and the launch of eToro’s portfolio will allow retail investors to easily invest in some of the most exciting chip designers in the world.
The portfolio comprises four types of companies- Fabless, companies like Nvidia, AMD, and Qualcomm that design, sell, and promote semiconductors, but do not produce them; Foundries, companies like United Microelectronics and Taiwan Semiconductor Manufacturing Company (TSMC) that manufacture chips; IDMs (Integrate Device Manufacturers) like Infineon Technologies, Intel, and Analog Devices that design as well as manufacture their own chips; and suppliers like Applied Materials and ASML, companies that produce technology and machines for manufacturing semiconductors.
Dani Brinker has reportedly stated that over the past two decades, the semiconductor industry grew three-fold. The US-China trade wars and COVID-19 have caused supply issues for the semiconductor sector and have emphasized how comprehensive the usage of these products is. Chip shortages have thereby resulted in delivery delays across a wide range of sectors, which include gaming and automotive, and are a major reason for the establishment of the Chip-Tech portfolio.
Source credits:
https://www.finextra.com/pressarticle/88443/etoro-launches-chip-tech-portfolio