Two years of the pandemic were fueled by demand for semi-conductor components, but this year a number of segments of the industry are facing a crisis of overproduction, as demand has fallen because of poor macroeconomic factors. Morgan Stanley's experts believe that the bottom will be reached either at the end of this quarter or at the beginning of the next quarter, and the second half of 2023 will bring the industry up altogether.
In the second half of 2023, analysts say that the semi-conductor industry will begin to recover clearly, and the best recommendation for investors from this point of view is to buy TSMC shares at current levels, because this company is believed to be a Morgan Stanley company. Experts also believe that paraconductor companies from South Korea and Taiwan deserve separate attention, because their influence is very high in local markets.
The demand for semi-conductor products, according to the authors of the analysis note, passed in September last year. It is premature to speak about the start of a new growth cycle, but the break point is close, according to Morgan Stanley. They also point out that Chinese semiconductor companies also deserve attention because they are working in a growing market. Buy shares of subject matter issuers should be bought in advance because they are returning to growth a little faster than the general rise in the industry.