The semiconductor upcycle will likely continue, with global powers fighting for chip dominance and independence, shortage of chips supply, as well as an increased demand for chips, says RHB Group Research Jarick Seet.
Seet is maintaining “neutral” on the sector, with “buy” calls on top picks Frencken Group (target price $2.02), Fu Yu Corp (37 cents) and Venture Group ($20.70).
About 29 new fabrication facilities (fabs) have been planned for construction in the next few years. This should ensure a high demand for equipment and will likely benefit the whole supply chain, says Seet in a July 28 note.
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