Thursday, 30 January 2025 Reading time : 3 minutes

Advances in artificial intelligence (AI) have become one of the most important business drivers for the semiconductor industry. This is the finding of a survey conducted by consulting company KPMG, which asked semiconductor executives about their business outlook for 2025. For the first time, AI applications top the list of key revenue drivers, pushing automotive applications into second place. More than 90% of respondents were confident that the industry as a whole would see revenue growth this year. 

A study by SEMI, the US-based industry association representing more than 3,000 semiconductor companies, also confirms the positive outlook for the global semiconductor industry. According to the report, global demand for chips and equipment will increase, leading to record industry revenues in both 2025 and 2026. China, Taiwan and Korea are expected to be the largest markets over the forecast period. 

The potential increase in demand for semiconductors also puts Swiss companies in a good position to benefit. However, they are not in the limelight, mainly acting as suppliers to the chip industry. Comet, VAT and Inficon are among the best known players. They all had a difficult year on the stock market, ending with price setbacks between 6% (Comet) and 17.6% (VAT), while the market as a whole rose (SPI: +6.2%). A first look at the earnings for 2024 now suggests a turnaround.

• Comet: A specialist in radio frequency and X-ray technology, Comet has an international presence and supplies components used in the production of high-performance microchips for electronic devices and in the testing of parts for the automotive and aerospace industries. Comet generates more than 70% of net sales in the semiconductor segment and aims to further increase this share by 2030 (according to Capital Markets Day 2023).
  
  At the end of January, the semiconductor supplier presented preliminary figures for 2024. According to the company, Comet increased sales by around 12% compared to 2023, with growth driven entirely by the recovery of the semiconductor market.
  
  
• VAT: The company based in Haag, St. Gallen, develops and manufactures vacuum valves, which are used in the production of semiconductors, displays and other industry applications. VAT claims to be a world leader in this field. The semiconductor industry is the company's most important market, accounting for around 80% of sales.
  
  At the beginning of January, VAT published its preliminary earnings for 2024, showing a 49% increase in orders and a 6% increase in sales, both compared to the previous year. The company pointed to the continued recovery of the semiconductor market in the last quarter of 2024 and expects this trend to continue in 2025. VAT will provide further insight on 4 March.
  
  
• Inficon: The specialist in innovative instrumentation, sensor technology and process control software serves a wide range of customers worldwide. As such, Inficon provides gas leak detection equipment used in the automotive industry. The Swiss company's products are also used by manufacturers of semiconductors and thin-film coatings. Inficon focuses on four core markets in which it claims to have a leading position. The semiconductor supplier generates around 50% of its sales in the Semi & Vacuum Coating segment.
  
  Inficon has provided a first glimpse of its earnings for 2024, with sales and profits stagnating compared to last year. Detailed results will be published on 13 March.

However, the current AI boom also comes with risks. The recent case of US chipmaker Nvidia illustrates how quickly stock market sentiment can turn from euphoria to gloom. After its shares soared from record to record on the back of AI enthusiasm, fears of exaggeration triggered a price correction from which the shares have yet to recover.

The Barrier Reverse Convertible on Comet, VAT and Inficon combines three Swiss semiconductor suppliers, with the barrier of 64% providing a cushion against possible price setbacks.

Barrier Reverse Convertible on Swiss Semiconductor Suppliers
10.00% p.a. BRC on Comet, VAT, Inficon
Barrier: 64%
Valor: 140 251 525

Indicative terms

 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements. The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document. If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen.
© 2025 Zürcher Kantonalbank. All rights reserved.