Investors looking to cash in on the Asian chip making industry are in for a nice surprise as a major realignment is said to tip the scales in the investors' favor. The industry has been in a very volatile condition for many years due to extremely safe strategies in supplies.
This realignment will benefit the Asian chip businesses and its investors, while gadget makers like Apple, Samsung, and others are on the losing side.
Companies like Toshiba Corp and SK Hynix who manufacture chips mainly in Korea are expected to gain the most due to the tremendous increase in demand for low priced tablets and smartphones. This demand came from China, where a majority of the smartphone market lies. New Chinese phone makers were founded recently, such as Huawei Technologies, prompting the market's boom.
"Chipmakers are reaping the benefits of curtailed investment of recent years just when demand is exploding," said I'M Investment and Securities' analyst Hong Sung-ho.
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