Technology

Report by the IDEA!

The escalating dispute between the Dutch government, China and chipmaker Nexperia has become a flashpoint in the global semiconductor power struggle. With parent company Wingtech already on a US trade blacklist and facing tighter restrictions, Nexperia’s plan to separate its Chinese and European operations is now in jeopardy. The export ban poses an immediate risk to Europe’s industrial supply chain, especially in the automotive sector. Finding and certifying alternative suppliers could take months, echoing the chip shortages of 2021/22. Strategically, it spotlights the West’s push for technological sovereignty and the Netherlands’ pivotal role in the China–West tech decoupling. Several (Dutch) companies could be affected including ASML, NXP, Philips and ASM International.

Technology

The party is just getting started - MRVL is the best semiconductor idea for 2022. While there are many great companies to choose from, MRVL stands out as the top semi supplier in terms of multi-year growth prospects. Since Matt Murphy took the reins the company has made several great acquisitions, pulled off the divesture of the decade (Wireless to NXP Semiconductors for $1.8bn), and is poised to take on Broadcom as the dominant communications semiconductor provider focused on the datacenter.