AEM share price in holy grail with Temasek

What a supersonic form! Investors must buckle their seat belts and brace for the wildest ride of their lives. AEM share price went on a rampage following a series of share purchases by its biggest shareholder – Temasek Holdings. Temasek’s entry in August 2021 saw the sovereign wealth fund taking an initial stake of 9.5% in AEM. Within six months, Temasek increased its stake to 12.08% following a slew of share purchases in 2022. What is the game plan that Temasek has in mind for AEM?

AEM share price

Whilst Temasek’s strategic investment in AEM may seem like a no-brainer, the narrative may not be so straightforward, at least for Temasek. To put things into perspective, Temasek used to have two major assets in the semiconductor industry – Chartered Semiconductor and Stats Chippac. Chartered Semiconductor used to be the world’s third largest chipmaker while Stats Chippac was the biggest Southeast Asia assembly and chip-testing company. Despite so, Temasek had disposed them during the previous downturn of the semiconductor industry.

Chartered Semiconductor was sold to Abu Dhabi in 2009 while Stats Chippac was sold to China’s JCET in 2015. Both companies were delisted from SGX following the buyouts. The rationale for Temasek to sell was understandable as both assets were struggling to turn around for years. Back then, stiff competition from Taiwan Semiconductor Manufacturing Company (TSMC) had led to razor-thin margins for chips. To compound matters, the higher manufacturing costs also mean that it is difficult to sustain operations in Singapore.

Given the notorious boom and bust cycle of the semiconductor industry, what could have caused Temasek to turn its head and invest in AEM? Surely, the motivating factors must be compelling enough after the experiences of Chartered Semiconductor and Stats Chippac. In this article, I will share my thoughts on the plausible factors in regard to Temasek’s investments in AEM and also share my insights on the outlook of AEM share price in 2022.

AEM share price in $1 billion dream

AEM share price in perfect storm

AEM share price to jump 100% with new patent?

AEM share price in fairytale with Temasek Holdings

AEM share price to hit $20?

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am vested in this counter, so my views on AEM share price (SGX: AWX) may be biased.

AEM share price in the battle of patents

Creative Technology’s 2006 war with Apple provided a sobering lesson for both Temasek and AEM. That saga highlighted that [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

Lost your Password?

For members of SG Wealth Builder logging in from Apple or Mac devices, please access through this link. This allows for one-time log in only (instead of having to key in user-id and password twice).

LIFETIME MEMBERSHIP

Congratulations on your first step to becoming part of SG Wealth Builder community! For a one-off payment of $200, you can get full access to all the articles and enjoy the benefits of SG Wealth Builder Membership.

The full benefits and privileges of SG Wealth Builder Membership:

  1. Access to the latest premium articles of SG Wealth Builder
  2. Email notifications of latest blog articles
  3. Request for coverage on stocks, insurance and other personal financial topics
  4. Comment in articles

Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.

Updated: May 6, 2022 — 12:19 pm

Leave a Reply