What is a semiconductor?

        Semiconductor is a material product typically composed of silicon, with a higher conductivity than insulators such as glass, but lower conductivity than pure conductors such as copper or aluminum. It is possible to modify its conductivity and other properties by introducing impurities (called doping) to meet the specific needs of the electronic components in which it resides. Semiconductors, also known as semiconductors or chips, can be found in thousands of products, such as computers, smartphones, devices, gaming hardware, and medical devices.

Key points

        Semiconductor exists in thousands of electronic products and is a material with higher conductivity than insulators but less conductivity than pure conductors.

        There are four basic types of semiconductors.

        The semiconductor industry survives and dies with a simple belief: a belief in being smaller, faster, and cheaper.

        Investors should remember that the semiconductor industry is a highly cyclical industry that is subject to cyclical ups and downs.

Understanding semiconductors

        Semiconductor devices can display a range of useful characteristics, such as variable resistors, which are easier to pass current and react to light and heat in one direction than in one direction. Their practical functions include signal amplification, switching, and energy conversion. As a result, they are widely used in almost all industries, and the companies that manufacture and test them are considered excellent indicators of overall economic performance.

        Semiconductor type

        Broadly speaking, semiconductors are divided into four main product categories:

        Memory: Memory chips act as temporary repositories of data and transfer information to and from the brain of computer devices. The consolidation of the memory market continues, pushing the price of memory to such a low level that only a few giants such as Toshiba, Samsung, and NEC can afford it.

        Microprocessors: These are central processing units that contain the basic logic to perform tasks. Intel's dominance in the microprocessor field has forced almost all other competitors (except for AMD) to exit the mainstream market and enter smaller segments or completely different fields.

        Commodity integrated circuits: Sometimes referred to as "standard chips," they are produced in large quantities for routine processing. This market segment is dominated by large Asian chip manufacturers, with minimal profit margins, and only the largest semiconductor companies can compete.

        Complex SOC: "System on Chip" is essentially the creation of integrated circuit chips that have the entire system functionality. The market revolves around the growing demand for consumer products with new features and lower prices. As the market for memory, microprocessors, and commodity integrated circuits closes, the SOC segment is undoubtedly the only one with sufficient opportunities to attract many companies.