Metaverse Ecosystem
Software + Payments
US: Autodesk, Adobe
EU: TeamViewer, OVHcloud
IT Hardware
US: Arista Networks, Cisco Systems
Asia: Inventec, Inspur, Unisplendour, Innolight, GDS, VNET, Chindata, Quanta, Wiwynn, Accton
Semiconductors
Equipment/Material: ASML, ASMI, TEL, Chroma, Soitec, Screen, Advantest
Foundry/IDMs: TSMC, Win Semi, Intel, AMD, Micron, STM, Infineon
Fabless/IC Design: Nvidia, Qualcomm, Broadcom, Marvell, Mediatek, Novatek, Realtek, Aspeed, Alchip
Backend: ASE, Amkor
Content
US: Warner Music Group, Endeavor, Disney, Comcast, Netflix, ViacomCBS
EU: Universal Media Group, S4Capital, WPP, Publicis Group
Cloud Compute
US: Amazon, Google, Microsoft, VMWare
China: Alibaba, Tencent, Baidu
Platforms
US: Alphabet, Amazon, Apple, Meta, Microsoft, Roblox, Unity, Fortnite, Niantic
EU: Ubisoft
China: Tencent, NetEase Japan: Sony, Gree, Gung Ho Online, Imagica Group, Cybernet Systems, Colopi, Gumi, Nintendo
Korea: NAVER, Kakao Corp, NCSoft, Krafton, Netmarble, NHN, Wemade, Com2us, Pearl Abyss
Virtual Communities: Decentraland, Horizon, RecRoom, Sandbox
HW Components
Display: BOE, TCL, Visionox, SeeYa Technology, Jade Bird Display, Olightek, SIDTek, Token Sciences, JDI, Sony, Samsung, LGD, Himax, Kopin, TI
PCB/Materials: Unimicron, ZDT, Ibiden, Shinko
Lens/Modules: SunnyOptical, Largan, Genius, SEMCO, LG Innotek, Patron, Monex, Dreamtec, Jawha Electronics, Hivision System, Powerlogics, Namuga, Sekonix, Cammsys, Haesung Optics
Passives/Battery: Murata, Taiyo Yuden, TDK
Telecom Services
China: China Mobile, China Telecom, China Unicom
EU: KPN
India: Bharti Airtel, Jio
Japan: NTT, KDDI
Korea: KT Corp, LG U+
US: AT&T, Charter, Comcast, Verizon
Devices
XR Device Assembly: Goertek, Luxshare, Pegatron, Hon Hai
METAVERSE ECOSYSTEM Sector views:
We discuss the implications in three sections on the areas of
potential for each sector:
(1) Content:
Includes regional internet sectors (China, Korea, Japan, Europe and the US) and the US media, software, and apparel sectors. New applications are being pioneered to evolve today’s experiences in gaming, entertainment, commerce, the monetisation of online property, advertising, and both consumer and enterprise social connectivity. The best-placed companies for the metaverse era have scaled datacentre footprints, deep services and content, existing gaming/video platform businesses, integrated hardware, and/or 3D game engines.
(2) Hardware and semiconductors:
Includes components, assembly, display, hardware and semiconductors. For semiconductors, the metaverse fits into our data paradigm thesis, with the metaverse permeating the create/capture, store, transmit and analyse view of the data economy and poised to benefit as improvement in power/performance unleashes more data consumption and use cases for silicon. We see silicon content expansion across edge devices (AR/VR and traditional compute), the upgrade of WiFi to 6E/7, increased 5G/6G penetration and broadband fibre transmission, and upgraded cloud infrastructure (both more compute resources, and more diffuse edge compute). For hardware, the metaverse would drive AR/VR opportunities in assembly, display, camera/optics, PCB/substrate, MLCC, connectors and batteries.
(3) Telecom and infrastructure:
Includes the US, Europe and Asian telcos, US towers, data centres and equipment, and Asia cloud IT infrastructure. The metaverse has enormous potential to further expand or divert screen time (Americans average 10+ hours/day on media, including 3+ hours on TV) and drive more bandwidth consumption. Internet traffic is already 80% video and has been growing at a 30% CAGR. Our team projects even modest metaverse usage could drive a further 37% CAGR over the next decade to 20x current data usage. This will support the value of the bestconstructed networks in each region, while also demanding upgrades to data centres and network equipment.
