- 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
