“As the things around us get smarter, more capable, and electronic, semiconductors are literally the foundation of all that,” says Albrecht in a recent interview with Wealth Professionals. “They say data is the new oil. I want to say that semiconductors are the new oil, because they are literally the makeup for everything that leads to data in this digital world in which we live.
The fund (CHPS) has 52 holdings around the world, including some of the industry’s best-known companies, including Taiwan Semiconductor Manufacturing Co. Ltd., Nvidia Corp., Applied Materials Inc., and ASML Holdings in the Netherlands. Even as countries become more inclined to make their own semiconductors rather than rely on Taiwanese people, Albrecht has modified only a few ingredients.
This became most evident when manufacturers were unable to keep up with production of home appliances, automotive parts and electronics due to shortages, while semiconductor shortages during the pandemic brought this tiny chip to everyone’s attention,
Even though factories are capital-intensive and will take time to come online, Albrecht expects “exponential growth in semiconductors” for all smart devices.
“We see these forecasts for a trillion of these new devices over the next 10 years,” he says, “so the sky is the limit for semiconductors.”