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Macro Insight: Semiconductor chips in short supply

The global shortage of semiconductors has highlighted the impact on the corporate sector and questioned the sustainability of existing supply chains.
06 August 2021
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    Key takeaways:

    • The semiconductor chip shortage should begin to ease in the coming months
    • Global supply chain diversification and regional cooperation should support Asia’s industrial sector, trade and growth outlook
    • The chip shortage highlights the structural theme in semiconductors
    • It also underscores the importance of allocating selectively to growth stocks, despite their sensitivity to the risk of higher bond yields
    • In H2, we need to remain realistic about what kind of investment returns are achievable, and open-minded to more barbell approaches to building equity portfolios
    • The industry's market share is now more heavily concentrated in the hands of a few
    • More countries are recognising the risk that an inability to secure chips may also compromise national security, with ambitious plans to boost domestic investment and production