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Chipmakers Will Earn Billions Thanks to the Metaverse

The metaverse gained popularity in 2021 thanks to Facebook. The world’s most famous social media network changed its company name to Meta. Thanks to the metaverse, users can engage in virtual activities such as gaming, virtual concerts, or live sports. It is no secret that the metaverse requires a massive amount of computing power. Besides, it is set to benefit global chipmakers as well as other tech-related companies.

Nonetheless, the benefits to chipmakers will be “uneven” according to Morningstar’s report. 

Only several chipmakers have the opportunity to meet the requirements. Samsung, TSMC, and Intel will earn a lot of money thanks to the metaverse. 

Still, smaller companies such as SMIC, United Microelectronics Corporation, as well as GlobalFoundries may only benefit from the lower-value parts of the supply chain, such as power management and display drivers. 

In 2021, Nvidia benefited from an interest in the metaverse. Its shares jumped 125%. 

Aside from chipmakers, other companies are also willing to support the metaverse. Investors should pay attention to companies that are supplying the “key building blocks” such as cloud computing, etc. 

Cryptocurrencies may also play an important role. Nonfungible tokens could create an “interesting” ecosystem for digital content creation and monetization.

Apple, Google, Facebook’s parent company Meta, and Microsoft are gearing up to release new hardware products and software services for the metaverse.

China is also ready to embrace the metaverse. The country’s biggest city Shanghai included the metaverse in its five-year development plan. It is one of four frontiers for exploration according to the Shanghai Municipal Commission of Economy and Information Technology. The commission wants to increase research and development of underlying technologies, including sensors, real-time interaction, and blockchain. Its five-year plan did not lay out a specific timeline for research and development. 

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