Our Pure-Play Semiconductor Foundries Portfolio Is UP 13% MTD

What Is A Pure-Play Semiconductor Foundry? 

A pure-play semiconductor foundry (also known as a fabrication or “fab” plant) does not create its own integrated circuit products but, instead, concentrates all its efforts in the manufacturing of chips based on designs provided by other semiconductor companies which allows it to specialize in manufacturing processes and technologies.

What Is An Integrated Circuit?

Wikipedia defines an integrated circuit, also known as a microchip, computer chip, or simply chip, as a small electronic device made up of multiple interconnected electronic components, created by photolithographic techniques, which are etched on to a small piece of semiconductor material, usually silicon, which, in turn, is laminated on printed circuit board and fused with a metal alloy to create a permanent bond between metal workpieces to create a finished integrated circuit.

What Is A Semiconductor?

Again, according to an edited and abridged version from Wikipedia, a semiconductor is a material that has an electrical conductivity value falling between that of a conductor, such as copper, and an insulator, such as glass. In many cases their conducting properties are altered by introducing impurities (doping) into the crystal structure and when two differently doped regions exist in the same crystal, a semiconductor junction is created. Connecting the two materials causes creation of a depletion region near the boundary, as the free electrons fill the available holes, which, in turn, allows electric current to pass through the junction only in one direction. and is the basis of diodes, transistors, and most modern electronics. Silicon is a critical element for fabricating most  electronic circuits and is the most common semiconductor. After silicon, gallium arsenide is the second-most common semiconductor and is used in laser diodes, solar cells, microwave-frequency integrated circuits, and others.

The MunAiMarkets Pure-Play Semiconductor Foundries Portfolio

There are only 4 pure-play semiconductor foundries trading on U.S. stock exchanges and they are outlined below as to their stock performances MTD in May (i.e. May 23rd), in descending order, and YTD along with their market share based on revenue:

1. Taiwan Semiconductor Manufacturing Company (TSM): UP 15.2% MTD; DOWN 3.0% YTD
   • TSM was the world’s first pure-play and is the largest foundry company. Its primary fab is in Taiwan with additional wholly owned subsidiary fabs in Japan (2), USA (1); China (1); Germany (1 – a JV fab with ESMC to begin production in 2027; U.S. (3 in Arizona with production to begin in 2025, 2028, and 2029/2030; and Japan (2 – by majority owned JASM with production to begin in 2024 and 2027)
   • Market Capitalization of $834B.
   • Market Share: 62%
2. Tower Semiconductor (TSEM): UP 13.6% MTD; DOWN 21.1% YTD
   • TSEM is domiciled in Israel with a design center there and operates 7 manufacturing facilities: Israel (2); USA (2); Japan (2) and Italy (1 shared with ST Microelectronics).
   • Market Capitalization: $4.7B
   • Market Share: 1%
3. United Microelectronics Corporation (UMC): UP 11.1% MTD; UP 20.5% YTD
   • UMC is headquartered in Taiwan, with fabs in Taiwan (8); China (2); Singapore (1) and Japan (1).
   • Market Capitalization: $19.2B
   • Market Share: 6%
4. GlobalFoundries (GFS): UP 4.2% MTD; DOWN 14.8% YTD
   • GFS is headquartered in New York with fabs in Singapore (2); the U.S. (2); and Germany (1). GFS has already received over $1.5 billion via the CHIPS and Science Act.
   • Market Capitalization: $20.6B
   • Market Share: 6%

In Summary:

The above 4 pure-play semiconductor foundry stocks account for 75% share of the total market, are UP 3.3% MTD but are DOWN 7.2% YTD.

Not included in the above analysis are Samsung Foundry; SMIC, HuaHong; PSMC; VIS; and DB Hitek with at total of 25% in total market share as they are either not pure-play foundries or are not traded on a U.S. stock exchange.

Please note: For

• a chart of the historical Portfolio YTD, 1M, 6M and 1Y Performances, go HERE, Add Specific Portfolio Symbols, Scroll Down to Portfolio Performance Settings & Click on Calculate Performance, Scroll Down to Portfolio Performance Chart & Specify Time Period and Scroll Down to Returns by Period.
• a specific stock price performance (currently, yesterday, over the past 5 days, 1 month, 6 months and 1 year) go HERE, type in the Stock Symbol, and Click on Time Period
• a specific stock’s performance statistics and financials go HERE, type in Stock Symbol, and Click on Statistics and Financials
• the reasons behind the price change in a specific stock go HERE and ask “Why did x stock change price so much this week?”