Singapore Technology Stocks - DBS Research 2022-10-18: Semiconductor Outlook Turning Negative Near Term

Singapore Technology Stocks - Semiconductor Outlook Turning Negative Near Term

Published:
Semiconductor Sector Outlook - DBS Group Research | SGinvestors.ioVENTURE CORPORATION LIMITED (SGX:V03) MICRO-MECHANICS (HOLDINGS) LTD (SGX:5DD) GRAND VENTURE TECHNOLOGY LTD (SGX:JLB) FRENCKEN GROUP LIMITED (SGX:E28) AZTECH GLOBAL LTD. (SGX:8AZ)
  • The Singapore technology sector P/E has dipped below -1 standard deviation of its 5-year average P/E. Semiconductor players were the main culprits owing to mounting macro headwinds. (see also recent SGX Market Updates: Technology Stocks Take Spotlight On US Trade Policy & Growth Outlook and summary of SGX technology sector stocks share price performance.)
  • - Read this at SGinvestors.io -
  • US CHIPS Act and US export controls have major implications to global semiconductor supply chain –
    • The former, signed in August, seeks to increase the US’ chips resilience by incentivizing chip manufacturers to re-shore and produce chips back in the US. Companies (or integrated device manufacturers) that are involved in the fabrication/production/manufacturing process are expected to benefit the most from subsidies under the US Chips Act. Examples include domestic players like Intel’s 8 fab-plants worth US$100bn in Ohio, Micron’s US$100bn mega-fab in New York, and GlobalFoundries’ US$4.2bn plant in New York. On the other hand, most leading US semiconductor players (e.g., Qualcomm, Broadcom, Nvidia, and AMD) are focused on chip-design and operate on a “fabless” business model, and thus do not stand to benefit directly from this.
    • - Read this at SGinvestors.io -

Lower valuation peg for technology sector stocks

  • Read more at SGinvestors.io.




Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.




Lee Keng LING DBS Group Research | Singapore Research Team DBS Research | https://www.dbs.com/insightsdirect/ 2022-10-18



More views on outlook of manufacturing / technology sector:
Analyst Reports on Singapore Manufacturing & Technology Sector





Advertisement

You May Also Like




SGX Stock / REIT Search

Advertisement

Most Read

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁

Advertisement