Semiconductors and advanced electronics serve as the core enabling layer of today’s digital and industrial systems — driving the performance of AI, cloud computing, electrified mobility, energy infrastructure, and intelligent automation across global industries.

Investment Thesis

		Semiconductors are the backbone of AI and cloud computing, driving exponential demand for advanced logic, memory, and accelerated computing architectures.
		Supply chain realignment (US, EU, Japan, Korea, China) is generating unprecedented investment in fabrication, packaging, materials, and equipment.
		Power electronics, sensors, and RF technologies are expanding rapidly as EVs, IoT, and connected systems scale globally.
		New architectures and chiplet designs are shortening innovation cycles and opening opportunities for specialized players.
		Advanced manufacturing equipment (lithography, metrology, deposition, testing) has high technical moats and long-term revenue visibility.
		Semiconductor materials and specialty chemicals are critical bottlenecks with strong pricing power.
		Photonics, quantum devices, and heterogeneous integration represent frontier opportunities with multi-decade potential.

Key Subsectors & Value Chain

		Semiconductor Design & Architecture ·     AI accelerators (GPUs, NPUs, ASICs) ·       CPU & RISC-V architectures ·       Chiplet & heterogeneous compute systems ·       Edge computing chips
		Manufacturing, Equipment & Process Technology ·   Lithography, deposition, etching ·       Process control, inspection & metrology ·       Epitaxy tools, ion implantation systems ·       Packaging, testing & advanced interconnect
		Materials & Critical Inputs ·   Photoresists, advanced chemistries ·       Silicon wafers, compound semiconductors (GaN, SiC, GaAs) ·       Specialty gases & deposition materials ·       Encapsulation, substrates & adhesives
		Advanced Electronics ·   Power electronics (SiC, GaN devices) ·       RF & microwave systems ·       Photonics, optical interconnects ·       MEMS sensors & actuators ·       Embedded systems & IoT modules

What CAND Looks For

CAND evaluates semiconductor and electronics opportunities based on:

·       Deep technical differentiation and defensible IP

·       Critical value chain positioning (materials, equipment, bottleneck components)

·       Alignment with structural industry trends (AI compute, EV, 5G/6G, automation)

·       Clear commercial pathways with Tier-1 or OEM customers

·       Capital-efficient scaling strategies, especially in design and materials

·       Team expertise in semiconductor engineering, physics, or manufacturing

·       Resilience to geopolitical, supply-chain, and regulatory risks

·       Strong technological moat — process know-how, proprietary chemistry, or unique device physics

Risks & Considerations

·       Extensive R&D cycles and high burn rates for certain technical pathways

·       Significant geopolitical and regulatory exposure

·       Customer concentration risk, especially with large OEMs

·       Technical scalability challenges in both materials and process equipment

·       Cyclical demand patterns in consumer electronics

·       Long qualification cycles (particularly automotive and aerospace)

CAND incorporates these into a rigorous evaluation methodology.

How CAND Helps Investors Navigate This Sector

CAND works closely with semiconductor engineers, equipment specialists, materials scientists, and global supply-chain experts to identify pivotal opportunities across the value chain. Our due diligence approach includes:

·       assessment of architecture and device performance

·       analysis of competitive positioning in global supply chains

·       technical feasibility reviews with domain specialists

·       evaluation of manufacturing scalability

·       scenario modeling based on industry cycles and geopolitical dynamics

·       commercial validation with OEMs, fabs, and systems integrators

Through this disciplined, insight-driven process, CAND helps qualified investors participate in one of the world’s most strategically important and technologically challenging sectors.