Question 1

What is a semiconductor foundry?

Accepted Answer

A semiconductor foundry is a factory that manufactures chips to the precise specifications of other companies, rather than designing its own. Taiwan Semiconductor Manufacturing Company (TSM) is the world's leading example — it physically produces the processors that power devices for some of the most valuable technology brands on the planet. Without foundries like TSM, companies that design chips would have no way to bring their products to market.

Question 2

What is EUV lithography?

Accepted Answer

EUV (Extreme Ultraviolet) lithography is the most advanced method used to print microscopic circuit patterns onto silicon wafers during chip manufacturing. ASML is currently the only company in the world capable of producing EUV lithography machines, making it an irreplaceable part of the global semiconductor supply chain. Without ASML's equipment, leading foundries like TSM simply could not manufacture cutting-edge chips.

Question 3

What are memory semiconductors?

Accepted Answer

Memory semiconductors are the components inside devices that allow them to store and access data at speed. Micron Technology (MU) is one of the world's leading designers and manufacturers of these chips. Demand for memory is driven by consumer electronics, data centres, and the rapid growth of artificial intelligence applications, all of which require large volumes of fast, reliable storage.

Question 4

Is investing in supply chain stocks a good idea?

Accepted Answer

Supply chain stocks offer exposure to the physical infrastructure that major technology brands depend on, rather than the consumer-facing brands themselves. Companies like TSM, ASML, and Micron sit so deeply inside the production process that they are genuinely difficult to replace, which can support more stable revenues during periods of high demand. That said, all investments carry risk and you may lose money, so it is important to understand the cyclical nature of the semiconductor sector before investing.

Question 5

What are the risks of investing in semiconductor supply chain stocks?

Accepted Answer

The semiconductor sector is cyclical, meaning revenues can fall sharply if consumer electronics sales slow, enterprise spending contracts, or a broader economic downturn reduces capital expenditure. Geopolitical risk is also significant — Taiwan's central role in chip manufacturing through TSM means any escalation of regional tensions could have material consequences. Memory pricing cycles, which affect companies like Micron, have historically been volatile and can lead to significant revenue swings.

Question 6

How do supply chain stocks fit into a long-term investment portfolio?

Accepted Answer

Supply chain stocks can provide indirect exposure to the success of the world's largest technology brands without requiring direct investment in those consumer-facing companies. The basket featured on Nemo is large-cap dominant, which generally implies lower volatility relative to smaller, higher-growth positions. Because global semiconductor demand is tied to long-term trends — including AI, connected devices, and data centres — these companies may serve as a structural, rather than purely speculative, component of a diversified portfolio.

Question 7

Are supply chain stocks better than buying big tech stocks directly?

Accepted Answer

Supply chain stocks offer a different kind of exposure — one that is less dependent on any single brand's consumer success and more tied to the physical production infrastructure that all major tech companies rely on. When shortages occur, deeply embedded suppliers like TSM and ASML can gain pricing power precisely because there is no credible alternative. This makes them a complementary rather than a replacement option for investors already holding large technology brands.

Question 8

Why are chip shortages good for supply chain companies?

Accepted Answer

When chip shortages occur, the companies with locked-in relationships with the largest buyers become indispensable rather than vulnerable. Constraints concentrate value rather than destroy it — companies like TSM and Micron, which already have established production capacity and long-standing customer relationships, tend to benefit from improved pricing power and more stable demand during shortage periods. The wider market scrambles; these companies ship.

Question 9

What is driving long-term demand for semiconductors?

Accepted Answer

Long-term semiconductor demand is being driven by several converging trends: every modern car now contains chips, home appliances are increasingly connected, and the rapid expansion of artificial intelligence requires enormous volumes of memory and processing power. The infrastructure needed to train large AI models is itself built from the very components that companies like Micron, ASML, and TSM supply, suggesting that demand is structural rather than cyclical.

Question 10

Why are supply chain stocks relevant for investors in Africa?

Accepted Answer

Historically, investing in globally significant companies like ASML or TSM required substantial capital and access to US or European brokerages — barriers that made participation difficult for many investors across Africa and emerging markets. Fractional share investing on platforms like Nemo changes that, allowing investors to build exposure to these companies from as little as $1. The opportunity to access the infrastructure of the global technology economy is now genuinely within reach for a far wider range of investors.

Question 11

How can I invest in supply chain stocks on Nemo?

Accepted Answer

Nemo offers a curated Supply Chain Stocks Neme that includes 15 companies spanning foundries, equipment makers, and memory suppliers — including TSM, ASML, and Micron. The platform is ADGM-regulated and offers commission-free investing, AI-powered research tools, and fractional shares starting from just $1. SIPC coverage of up to $500,000 is also included, providing an additional layer of investor protection. All investments carry risk and you may lose money.

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