Selected! Semiconductor-related stocks that hold the fate of the Japanese and global economy

While many industries are struggling to grow due to the Covid-19 disaster, there is one area that continues to grow at a rapid pace. This is the semiconductor industry.

More than a year and a half has passed since March of last year, when stock prices plummeted due to the Covid-19 shock, and many stocks have risen two to three times. I think this trend will continue for more than half a year,” said Masanori Konuma, president of Kizuna Asset Management.

The reason behind the strong performance is the global shortage of semiconductors that started around last fall. The reason behind the strong performance is the global shortage of semiconductors, which started last fall,” explains Yasuo Imanaka, chief analyst at Rakuten Securities, Inc.

With the growth of cutting-edge technologies such as 5G communication devices and electric vehicles, which are increasingly being introduced in Japan, the demand for semiconductors to support them has skyrocketed. In particular, high-performance semiconductors are required for smartphones in order to cope with the increase in communication volume caused by 5G.

Genichiro Tenkai, a stock journalist, says that now is the perfect time to invest.

Genichiro Tenkai, a stock journalist, says now is a good time to invest. Semiconductor stocks have been affected by this, but that is an opportunity. The strong performance of the semiconductor industry is due in large part to Covid-19’s special demand, such as the replacement of PCs for telecommuting and sales of game devices for hibernation demand. If the demand for nest eggs, etc. increases again, related stocks will go up significantly in price. Now is the perfect time to buy, as stock prices are falling.

Among the semiconductor-related stocks, which ones are particularly noteworthy? The one that Mr. Konuma believes is certain to rise in price is Tokyo Electron, Japan’s leading manufacturer of semiconductor production equipment.

Tokyo Electron is the leading company in Japan’s semiconductor industry, and has revised its sales for the current fiscal year upward from 1.7 trillion yen to 1.9 trillion yen, as it is on track to build a plant with a production capacity of 2 trillion yen. The stock price has already quadrupled from 16,000 yen to 60,000 yen in March last year, and is expected to rise further.

There are many other popular semiconductor-related companies in Japan.

For example, SCREEN Holdings, which develops equipment for cleaning semiconductors with pure water, has the world’s largest share of the market for this product. Lasertec has a 100% share of the global market for defect inspection systems. We can look forward to the next generation of inspection technology using special ultraviolet rays.” (Mr. Amami, above)

One concern is that many of the stocks are expensive, costing more than 10,000 yen per share, so buying a unit of stock (100 shares) would require more than 1 million yen. However, Mr. Konuma told me about a relatively inexpensive stock that can be purchased.

Shinko Electric Industries is priced at 5,000 yen per share, so you can buy it for around 500,000 yen. The company is engaged in the manufacture of glass terminals for semiconductors, and has raised its operating profit forecast for the current fiscal year from 33.4 billion yen to 59.4 billion yen. Since further upward revisions are expected, the stock price may rise to over 7000 yen.

Other companies that can be purchased for less than 500,000 yen include SUMCO, a manufacturer specializing in silicon wafers, and JSR, which focuses on semiconductor materials.

Meanwhile, overseas companies should not be overlooked. Taiwan, which is at the forefront of semiconductor manufacturing, also has some noteworthy companies. Mr. Imanaka reveals the following.

Taiwan Semiconductor Manufacturing is expected to grow in 2010 and beyond. Taiwan Semiconductor Manufacturing is currently the most advanced semiconductor manufacturer in the world, and it is repeatedly investing trillions of yen in new plants and other facilities. As soon as each plant goes into full-scale operation and produces results, the stock price will start to rise.”

There are many other stocks to watch. Don’t miss out on the semiconductor stock boom.

From the December 17, 2021 issue of FRIDAY