May 2025 Monthly Market Insights - Flipbook - Page 2
Market updates
Market Sentiment
• The iShares Semiconductor ETF (SOXX) is trading at $208.03, reflecting strong investor confidence.
• Semiconductor production expected to grow 1% to 12 billion units globally in 2025.
• Uncertainty from U.S. tariffs remains a risk, prompting diversification of production (e.g., Apple and TDK
shifting production to India and Vietnam).
Tech Trends Shaping the Market
• AI and Edge Computing are primary demand drivers.
• Growth in electric vehicles (EVs) and smart factories is spurring demand for advanced chips and power
components.
• Companies are focusing on energy-efficient, compact technologies, from TDK’s batteries to Vishay’s highpulse SMD resistors.
Outlook
With strong fundamentals, diversified supply chains, and demand from next-gen technologies, the
semiconductor industry is poised for sustained growth through 2025. However, geopolitical dynamics, talent
shortages, and energy costs will require strategic navigation by global players.
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