What is semiconductor onshoring and why does it matter?

Semiconductor onshoring means bringing chip manufacturing back to domestic soil, rather than relying on overseas production. This matters because semiconductors are essential components in everything from smartphones to cars. By producing chips domestically, countries reduce supply chain risks and gain more control over critical technology infrastructure.

How does Texas Instruments' new factory benefit other companies?

When a major manufacturer like Texas Instruments builds a new facility, it creates demand for many supporting businesses. Equipment suppliers provide the sophisticated machinery needed for chip production, materials companies supply silicon wafers and chemicals, and service providers offer maintenance and support. This creates a ripple effect throughout the semiconductor supply chain.

What does 'analyst rating' mean for stocks?

An analyst rating is a professional recommendation from financial experts who study companies and their prospects. Common ratings include 'Buy', 'Hold', or 'Sell'. These ratings reflect analysts' opinions on whether a stock is likely to perform well, but they're not guarantees of future performance.

What is market capitalisation and why does it matter?

Market capitalisation (or 'market cap') is the total value of a company's shares in the stock market. It's calculated by multiplying the share price by the number of shares outstanding. Larger market caps generally indicate more established companies, while smaller caps might offer more growth potential but with higher risk.

How do dividend yields work?

Dividend yield shows how much a company pays shareholders as a percentage of its stock price. For example, a 3% dividend yield means you'd receive £3 in dividends for every £100 invested annually. Not all companies pay dividends - some prefer to reinvest profits back into the business for growth.

16 handpicked stocks

The U.S. Semiconductor Surge

Texas Instruments is opening a new U.S. factory to produce iPhone chips for Apple, a move that strengthens the domestic supply chain. This creates a ripple effect, boosting demand for American companies that supply manufacturing equipment and advanced materials to the semiconductor industry.

Han Tan | Market Analyst

Updated today | Published at August 23