Dear Reader,
Happy Tuesday.
Today is Tuesday, April 21st.
I am genuinely excited for our webinar today at one o'clock.
Not because we're doing a webinar — but because of the company we're going to be talking about.
I think we've really nailed this one.
Here’s a quick recap
Yesterday we talked about the three steps of making a semiconductor.
Step one is design.
Step two is manufacturing.
Step three is packaging.
The designers have done extraordinarily well since the AI boom started in 2022.
Nvidia, AMD — tremendous winners.
The manufacturers have done extraordinarily well too.
TSMC's stock has been one of the great winners of the AI era.
Their business is just doing gangbusters.
But the opportunity we're onto now is packaging.
And I don't think people are perceiving this correctly yet.
Why Packaging Used to Be Simple
The reason there's no famous company in chip packaging is because it used to be a commoditized business.
You take a chip, put a plastic shell around it, ship it.
Low margins.
Maybe 2%, 3%, 4% on every hundred million dollars in sales.
It's like packaging anything — when you're just wrapping something up, there's not a lot of value to capture.
Why That Has Completely Changed
Manufacturers are no longer making one massive, perfect chip.
That has become increasingly expensive and difficult to do.
So instead, engineers are now breaking chips down into what are called chiplets.
They separate memory from logic from sensors, and they stack them together like microscopic Lego blocks.
And now the packaging firm has to assemble these extraordinarily complex pieces together in ways that reduce heat, maximize efficiency, and allow everything to communicate seamlessly.
This is not putting a plastic shell around a silicon chip anymore.
This is a highly sophisticated engineering process.
Where the Value Is Now
The reason Nvidia is so successful is because their engineers spent years perfecting chip design.
The reason TSMC is so successful is because their engineers spent years perfecting chip manufacturing.
The packaging side of this value chain has not yet had its moment.
But it is coming.
And once you cross the threshold of doing this at true scale and sophistication, you are not quite a monopoly — but you have a serious competitive advantage that will take competitors years to catch up to.
The investment in engineering and specialized machinery required to do this well creates a moat that most people haven't even noticed yet.
Who Is Already Working With This Company
Apple is a strategic partner.
Nvidia works with them.
Every major chip company you hear about every day is pushing this packager to become the next generation standard.
And they are well on their way.
This is also central to Elon's AI5 ambitions — the chip that powers the robo taxis and the Optimus robots.
Click Here to Join Us Today at 1:00 PM
We are going to walk through exactly where this fits in the semiconductor value chain, why the timing is right, and why I think this is one of the most compelling opportunities I’ve seen in years.
I hope you will join us.
[Register for Today's Webinar at 1:00 PM Here]
Have a wonderful morning.
I'll see you this afternoon.
Tidak ada komentar:
Posting Komentar