Gokul Hariharan, a leading semiconductor analyst at JPMorgan, said that the current situation with a shortage of chips - which has negatively affected production in many industries - may improve from mid-2022 amid the emergence of new supplies. Meanwhile, some analysts and investors expect the shortage of chips to continue until 2023.
However, Hariharan does not expect that there will be a shortage of supply in 2023. He added that the prospects for 2022 are "a little more complicated" - the situation with the deficit may improve in the second half of the year against the background of new supplies, but from January to June there may still be pockets of shortage in the industry.
Hariharan noted that JPMorgan is recommending that investors start pursuing longer-term trends in the semiconductor space that are more structural than cyclical.
According to him, JPMorgan identifies two trends that it is positive about over the next three to five years. "The first is high-performance computing segments, which are becoming fragmented as more and more companies enter this field. The second is Chinese semiconductor companies that focus on legacy, long-tail technologies", Hariharan said.
"We are seeing that more and more companies are coming up in China aiming to target some of these longtail technologies," Hariharan added.