TSM - Photronics: Key Player In The Semiconductor Value Chain Despite Small Size

• Photronics is a supplier of photomasks used in semiconductor and display manufacturing.
• The company has managed to deliver higher margins despite supply chain bottlenecks and a high-inflation environment.
• Reasons are the production of high-end products and offshoring of production to China.
• Margins should increase even further as the company absorbs the costs of setting up factories.
• The stock is a buy due to its lower valuations, but investors should also be aware in case of geopolitical tensions with China, there should be a lot of volatility.

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