Listen as Eventide Portfolio Manager and Senior Research Analyst Anant Goel explains why we believe semiconductors—the building blocks of the digital economy—are poised to promote the flourishing of society and the long-term secular growth of the technology industry for decades to come.

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Anant Goel:
Semiconductors are the building blocks of the digital economy. They’re what power and enable every device to have greater and deeper functionality.

In 2019, nearly 300 billion chips were sold. That’s about 40 chips for every person on the planet. We have already seen that in the last 25 years semiconductors have gone from one end market, which was the personal computer, to smartphones in the 2000s, to now multiple markets such as data centers, automotive, and the internet of things, and that all these end markets are experiencing long-term secular growth. On top of the end markets, there are a range of architectures and materials that are driving adoption of semiconductors across industries and use cases. We should continue to see this explosion in the number of semiconductors, but also see an expansion in the types of semiconductors that are available.

While the industry has historically been highly cyclical with greater consolidation in the industry and the expansion of these end markets and use cases, we believe the swings are likely to be less violent and the industry is poised to experience long-term secular growth for decades to come. Semiconductors will help society by enabling capabilities that we could never have considered some time ago–capabilities like safer and smarter cars in cities, robotic medical devices saving lives, greater productivity of machines and individuals, leading to a more dynamic and flourishing society.