Considered the next generation of the internet, the metaverse is generally a virtual world where humans can interact with each other through holographic avatars controlled through virtual reality (VR) glasses like the Oculus. The concept gained a lot of attention last year, when the social networking giant Facebook changed its name to Meta in late October 2021.
CNBC quoted analysts as saying that big technology companies, especially chip makers, will benefit when the technology related to that virtual world emerges. “The winners in the metaverse are really tech companies,” said Hou Wey Fook, chief investment officer at DBS Bank.
|Testing a Facebook virtual meeting using the Oculus Quest VR glasses|
Semiconductor companies will be the most obvious beneficiaries as the metaverse will require a lot of computing power. However, the benefits between chip manufacturers will be “unequal” because “many tasks taking place in the metaverse involve processing huge amounts of data in real time, which requires the type of chip involved.” had to use the advanced process button available only at TSMC, Samsung and Intel.”
Smaller chip factories such as United Microelectronics Corporation, SMIC and GlobalFoundries may benefit only from the lower value portion of the supply chain, such as display drivers and power management. In its December 2021 report, private bank Lombard Odier said the other key area set to support metaverse infrastructure that investors might consider would be companies that are providing “building blocks.” mainstream”, such as cloud computing, artificial intelligence (AI), and video game graphics.
In virtual, cashless environments like the metaverse, blockchain technology and cryptocurrencies can also play an important role. According to the Lombard Odier bank, the blockchain that supports the non-fungible token (NFT) will create an “exciting” ecosystem for creating and monetizing digital content.
“Those can empower the use of artwork or private products created in the metaverse, opening the door to a new virtual economy. In this area, human creativity has almost no limits,” said Lombard Odier bank.
Meta, Apple, Microsoft, and Google are preparing to release new hardware products and software services for the metaverse. In Asia, China also tends to boom. It is known that the Shanghai city government has included the metaverse in its 5-year development plan. The plan calls for “encouraging the adoption of the metaverse in areas such as public services, business offices, social entertainment, industrial production, production safety, and video games.”