I am not an expert by any means on the specifics of semiconductors on a technical level, but I know that one large downside of SiC compared to silicone (at least for now) is that they cost as a rule of thumb 3x as much to produce. A lot of use cases for analog semiconductors require cheap chips in mass production. SiC will most likely remain a niche market for a while.
GaN is another thing that's hyped up as a new material. I know that TXN is leading here, but at the end of the day I believe that the breadth of portfolios for TXN and ADI is a competitive advantage against other players and innovation in niche markets like SiC.
Thanks - I think that COGS impact is clear when you look at the gross margins of the big SiC players. However, I would not consider the major SiC companies as niche players, even if the SiC products they make are niche.
I might consider adding a non-SiC player to my portfolio - either Broadcom or TI, I think. But I'm trying to bring the number of stocks I invest in down, not keep adding new companies! 😁
I've just published my own take on this industry - I like TXN and AVGO, but I'm holding STM, predominantly for the SiC exposure
I'd be interested in your thoughts on my article? Anything you think I've overlooked?
https://showmethevalue.substack.com/p/industry-dive-analogue-semiconductors?r=1ukiw6
I am not an expert by any means on the specifics of semiconductors on a technical level, but I know that one large downside of SiC compared to silicone (at least for now) is that they cost as a rule of thumb 3x as much to produce. A lot of use cases for analog semiconductors require cheap chips in mass production. SiC will most likely remain a niche market for a while.
GaN is another thing that's hyped up as a new material. I know that TXN is leading here, but at the end of the day I believe that the breadth of portfolios for TXN and ADI is a competitive advantage against other players and innovation in niche markets like SiC.
Thanks - I think that COGS impact is clear when you look at the gross margins of the big SiC players. However, I would not consider the major SiC companies as niche players, even if the SiC products they make are niche.
I might consider adding a non-SiC player to my portfolio - either Broadcom or TI, I think. But I'm trying to bring the number of stocks I invest in down, not keep adding new companies! 😁