The value of property and inventories at the world's 20 largest semiconductor companies has risen 12% in a year to $529 billion, which leaves them at risk of being underinsured if the assets are damaged, according to research from Lloyd's specialty insurer Atrium.
Property, plant and equipment rose 12% to $411 billion from $368 billion, and inventories rose 14% to $118 billion from $104 billion. Over ten years, property assets are up 284% from $107 billion and inventories up 338% from $27 billion. The research covered the 20 largest chipmakers by market capitalisation at 30 June 2026.
Atrium attributes the build-up to record inventories and expanded production for data centres and areas such as electric vehicles, and to the high cost of developing and making advanced AI chips.
Nick Leppard, Head of Property Direct & Facultative at Atrium, said: “Semiconductor companies have a huge amount of capital tied up in highly specialised facilities, so any damage to these facilities can result in dramatic financial losses.” He said rapid growth in stock and facilities can leave cover out of date if it is not revised.
The report cites a 2025 earthquake whose vibrations destabilised chips being made by a large Taiwanese manufacturer, costing $161 million net of insurance claims, and a 2013 fire that cost a Korean chipmaker around $860 million. Typhoons and other natural hazards also threaten production that depends on extreme precision.
To stay across the latest in cloud, AI and enterprise tech analysis from Compare the Cloud, subscribe to our weekly newsletter at https://www.comparethecloud.net/newsletter
