- Summary:
- Swissquote has introduced an investment portfolio focusing on the semiconductor industry. We tell you the motivation behind it.
Swissquote, the Swiss online trading platform, has expanded its Themes Trading offerings to include the Semiconductor Industry Portfolio. The companies in the Semiconductor Industry Portfolio are industry leaders in supplying goods and services to the semiconductor industry. They cut across the entire value chain. Swissquote’s Themes Trading is a group of themed portfolios that investors can buy rather than single stocks.
Swissquote leveraging growing semiconductor demand
The demand for semiconductors has skyrocketed in recent years. That is because the digital industry has become increasingly influential in people’s daily lives. The industry is also central to the functioning of organizations. However, geopolitical concerns and chip shortages are two of the industry’s biggest problems right now. Nonetheless, confidence in the semiconductor industry continues to be high, and Swissquote is preparing for the expected expansion.
A $30 billion funding agreement between Intel and Brookfield Asset Management Inc. has been one of the week’s most highlighted transactions. In terms of international relations, it appears that tensions between the United States and China regarding Taiwan have subsided. Notably, neither side in the dispute took any action that may have damaged Taiwan’s position as a leader in the global semiconductor sector.
In addition, President Joe Biden of the United States recently signed the Chips Act, which provides $52 billion in subsidies to American semiconductor firms. The benefits include a tax credit for investments in chip production, funding for research, and grants for the semiconductor industry. Swissquote has positioned itself advantageously in the market by releasing the Semiconductor Industry Portfolio.
Potential investors will be keeping a closer eye on the sector for the foreseeable future. According to a new report by McKinsley, the semiconductor sector will be worth $1 trillion by the decade’s end. The number is based on the expectation of a 2% annual price increase and a stabilization of supply and demand from the recent volatility. The Themes Trading has been around for about 7 years and Swissquote will likely be adding more portfolios in coming days.