NEW AGE FUND INVESTS IN THE MOST ADVANCED SEMICONDUCTOR FACTORY IN THE WORLD
- Jan 9, 2023
- 3 min read
Photo: Business Wire
Dear Investors,
Western Digital (WDC) from the NEW AGE FUND portfolio, a sub-fund of STARTEEPO Invest, has opened the most advanced semiconductor manufacturing facility in the world (designated Fab7) in cooperation with Kioxia Corporation. The ceremonial opening took place in the final quarter of last year, specifically in Mie Prefecture, Japan.
Fab7 is the newest and most technologically advanced semiconductor manufacturing plant of today. We believe that this investment will give Western Digital a competitive advantage in the market, which will translate into share price growth in the near future.
Sustainability and the new economy
The investment of the NEW AGE FUND sub-fund, a sub-fund of STARTEEPO Invest, in shares of Western Digital reflects our vision of sustainable investing in the new economy sector. The innovative design and production efficiency of the Fab7 facility also underline Western Digital’s commitment to delivering sustainable memory and storage technologies to customers around the world.
The new plant also uses artificial intelligence to improve production efficiency, as well as a space-efficient design for all installed equipment. Fab7 is a safe and sustainable new facility, capable of absorbing earthquake shocks, while also implementing the most energy-efficient manufacturing equipment of its time.
Source: Business Wire
Photo: Business Wire
What will the new factory be able to do?
Fab7 will be capable of producing 162-layer sixth-generation flash memory and future advanced 3D flash memory. The first of these memory products is expected to be brought to market as early as the beginning of 2023.
Kioxia and Western Digital have maintained a successful joint venture partnership for more than 20 years, maximizing synergies and competitiveness through joint development of 3D flash memory in competition with rivals.
The path toward a major merger is reopening
Fresh discussions are emerging between Kioxia and Western Digital regarding a potential merger. This had previously been a major topic in August 2021, but ultimately did not materialize. Interestingly, merger discussions have also taken place between Kioxia and Micron Technology, whose shares are also included in the NEW AGE FUND portfolio.
As a result, WDC shares have already risen by nearly +20% since the beginning of the year. We believe this is only the beginning of a growth cycle, which—after last year’s declines (-51.62%)—we expect to continue over the next three years.
Source: YahooFinance
We believe that long-term global demand for memory products will continue to grow, as the world consumes ever-increasing amounts of data across a wide range of connected devices and use cases. Semiconductor manufacturing therefore represents a significant part of our portfolio, where we focus on sector winners.
Kind regards,The STARTEEPO Team
Would you like more information about our investments?
Contact us at info@starteepo.com to arrange a meeting.
Disclaimer
The information contained in this article was prepared by STARTEEPO s.r.o., with its registered office at Plynarni 1617/10, Prague (“the Company”), which is the 100% shareholder of STARTEEPO Invest, investiční fond s proměnným základním kapitálem, a.s. The Company draws information from reliable sources and has exercised reasonable care to ensure that the information is not false or misleading; however, it does not guarantee its accuracy in any way. This material is intended solely for promotional purposes and does not replace the fund’s prospectus. It is intended as preliminary information and does not replace professional advice on financial investments or comprehensive risk disclosure. The information provided herein does not constitute an offer or solicitation to buy or sell financial instruments. Investment decisions may only be made based on the current version of the fund’s articles of association. Past performance is no guarantee of future results. This document has been prepared with due care and attention; however, the company makes no guarantees regarding its accuracy, correctness, timeliness, or completeness. The content of this document is protected under copyright law; the company is the copyright holder. The Company is not liable for the dissemination or publication of information by third parties.
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