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Semiconductor Industry Stocks Design Companies (Fabless) Design companies are also your fabless companies, with the core business purpose being to design chips to be used for different purposes (ie mobile phones, consumer electronics, auto, etc). These companies focus heavily on R&D, with the intent of developing new chips...I recently wrote 2 articles on the semiconductor industry (see links below). I will like to follow up with a 3rd article that seeks to look at the valuation of different semiconductor stocks. Semiconductor stocks can be broadly categorized into 5 segments: 1) Design, 2) Foundry, 3) IDMs, 4) OSATs and 5) Equipment Manufacturers. Global semiconductor supply chain: Where are the opportunities? 5 Small-Cap Semiconductor stocks that have crushed the market in 2021 Which of these segments command the greatest valuation premium in terms of Price/Earnings ratio? Let’s take an in-depth look at each segment.
