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5 things to know about the future of semiconductors
Shailesh Jaitly
Investment Analyst

How fast things can change: there was a major shortage of semiconductors at the start of the pandemic, and now the industry is grappling with too much inventory in parts of the supply chain. This has led to a sell-off in semiconductor stocks and prompted questions about the depth and duration of this downturn. 

The US has also stepped up restrictions on shipments of semiconductors and related equipment to China. Meanwhile, the US and the European Union have laid out plans to reshore semiconductor manufacturing in the interest of national security, which is expected to have longer-term implications for industry efficiency and chip prices.

Investment analyst Shailesh Jaitly recently visited Taiwan, Japan and South Korea, where he met with company management teams and some key industry contacts. In this piece he covers his current ideas about the state of the semiconductor business.

Chip stocks crumbled on inventory geopolitical concerns

five things to know

Data as at 31 October 2022. The PHLX Semiconductor Sector is a Philadelphia Stock Exchange capitalization-weighted index composed of the 30 largest US companies primarily involved in the design, distribution, manufacture and sale of semiconductors. Sources: Capital Group, Refinitiv Datastream


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Shailesh Jaitly is an equity investment analyst at Capital Group with research responsibility for semiconductor equipment globally, Asian technology excluding internet and IT services and as an Indian generalist, including utilities. He has 29 years of investment experience and has been with Capital Group for 11 years. He holds an MBA from National University of Singapore and a bachelor’s degree in electronics and communication engineering from the College of Engineering, Andhra University, India. He also holds the Chartered Financial Analyst® designation. Shailesh is based in San Francisco.

Past results are not a guarantee of future results. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

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