Guinness Sustainable Energy Fund on NXP Semiconductors
Thesis
The fund owns NXP Semiconductors for its power-semiconductor and microcontroller exposure to higher-voltage electric vehicles. The managers expect EVs to represent a growing share of global vehicle sales, which should increase the value of electronic content sold into each platform. NXP is therefore positioned to benefit from the electrification of transport rather than solely from unit growth in the overall auto market.
“Infineon and NXP Semi are providers of power semiconductors and microcontrollers”
Key risks
- EV adoption can be slower than expected
- Semiconductor demand and valuations can be cyclical