He added that KGB will be the first line beneficiary of chip shortage, which stemmed from a wafer fab capacity constraint.
The pandemic has changed the workplace towards a more remote or home-based and this will likely be the set up for the foreseeable future even if the pandemic subsides eventually. MIDF Research senior analyst Martin Foo explained that when chip producers have limited resources, they would try to cater to the bigger segments first such as electronics, where the majority of the demand comes from.
“On China’s side, they are trying to increase their imports and also for the transfer of knowledge, so they might pay a premium for that, ” he said, adding that in the longer term, the electric vehicles segment will be able to provide better earnings visibility for semiconductor companies.