WS Amati Global Innovation Fund: Auto semiconductors 2.0 – the new chapter(s) of growth
The automotive semiconductor story has changed, but the opportunity hasn’t gone away.
In fact, from where we sit, the next phase of growth looks broader and more resilient.
While EV momentum has cooled and autonomy has taken longer to develop, semiconductor demand is now being driven by multiple areas:
Rising content per vehicle: electrification, sensors and processing power
AI data centres: a fast-growing new market for power semiconductors
Software-defined vehicles: increasing demand for processing and control
Industrial automation: reinforcing many of the same trends
We’re seeing this play through in companies we hold, including Infineon and Allegro MicroSystems, where demand is coming from both automotive and AI-related applications.
Just as importantly, signs of a cyclical recovery are starting to emerge, alongside these long-term structural drivers.
We’ve pulled together a short piece on how we’re thinking about the sector and where we see opportunity. Read the full article here.