Telecoms & Semiconductors | 5G: Reality beyond the hype

SECTOR | Telecoms & Semiconductors | 5G: Reality beyond the hype

• What is 5G, and is it expected to be disruptive?
• Where are we at, and what can we expect in concrete terms for the coming years?
• In particular, we address the impact of 5G on two sectors of our coverage, telecoms and semiconductors, by exploring the following questions:
• How should 5G impact operators' business models: can expectations of value creation compensate for investment fears?
• Is 5G a growth driver for some semiconductor players?

Telecoms operators: turmoil on the way
• Each new generation of mobile telephony is, for telecom operators, a leap into the unknown: price of frequencies auctioned on the market, new infrastructures and associated investment levels, ability to monetize new usages, collateral impact on the competitive environment. In this respect, while 4G has been a revolution for users, it has been very disappointing in terms of creating value for telecom operators.

SECTOR | SemiConductors | Soitec at the front-end of network innovation
• We believe that 5G and the subsequent additions to the ecosystem will have major implications for the semiconductor players, from equipment and wafers manufacturers, to RF, microcontroller and ASIC chips designers. However, the roll-out of 5G and all its functionalities will be a gradual process, and as such, we believe only companies that are positioned upstream in the chain, with a significant exposure to mobile applications are likely to benefit from 5G in the short term.