The Fed’s aggressive rate hikes to tame the sky-high inflation and the Russia-Ukraine war are straining the already disrupted supply chains in the semiconductor industry. Moreover, the industry is experiencing a consumer-led slowdown. The warnings of slowing demand for chips have led to several semiconductor stocks tumbling in price.
However, the CHIPS and Science Act, aimed to boost American semiconductor research, development, and production, strengthening manufacturing capabilities and easing supply chain issues, should bolster the industry’s long-term growth opportunities.
