Table of Contents

INTRODUCTION 3

Theme map 3

Sector performance 4

Company performance 4

THEMES 5

Technology themes 5

Macroeconomic themes 11

SECTOR SCORECARD: COMPONENT MAKERS 12

Who’s who 12

Thematic screen 13

Valuation screen 14

Risk screen 15

APPENDIX: OUR “THEMATIC” RESEARCH METHODOLOGY 16

Component Makers Scorecard - Thematic Research

Summary

The explosion of IoT - and in this context we regard mobile phones as a part of IoT - represents the biggest influence on the components market worldwide.

IoT devices are essentially a collection of connected sensor modules, communications chips, and GPS components. Cameras are increasingly part of the mix. This growth is driving research into environmental sensors (e.g., detecting gasses, temperature, humidity, particles, and other environmental phenomena like noise and vibration).

The electronic components market is highly cost competitive, a situation that favors Chinese mass manufacturers. So, as with other markets, the “China factor” will be one to watch closely and carefully.

Our thematic scoring methodology is designed to identify tomorrow’s leaders rather than today’s incumbents, based on their competitive position in the most important themes impacting their industry.

To do this, we score the top 600 TMT companies against 60 investment themes, creating a database of 36,000 thematic scores - our thematic engine - to help us identify the strongest and weakest players in each sector over the next two years, once all relevant themes have been taken into account.

Scope

- This report is a sector scorecard, which identifies those companies most likely to succeed in a world filled with disruptive threats. Inside, we predict how each theme will evolve and who the leading and lagging companies are.
- It includes a theme map that shows the 60 biggest themes driving growth in the tech, media and telecom sectors.
- It explains how some of the largest listed players in the sector have performed over the last four years.
- It looks at major technology, macro-economic, and regulatory themes impacting component makers.

Reasons to buy

- Companies who invest in the right themes become success stories; those who miss the big themes end up as failures.
- Corporate executives and investors who want to outperform their competitors need to understand all the themes that impact their sector.
- However, many of these themes are, by definition, outside of the core competencies of company boardrooms because they typically originate from external industries.
- This Component Makers Scorecard provides a top-down, comprehensive outlook for the key players in the components industry over the next two years, based on the key themes set to transform their industry landscape.