The semiconductor industry has grown markedly so far this year, thanks to immense federal and private investments amid continuing robust demand. Amid the current global chip shortage, which has been exacerbated by increased sanctions against Russia, semiconductor companies are ramping up production with the help of private and government investments and incentives. Last month, the European Commission passed a new European Chips Act to enable $17.11 billion in public and private investments through 2030. And last year, President Biden set aside $50 billion for semiconductor manufacturing and research.
The U.S.-based Semiconductor Industry Association (SIA) has reported that global semiconductor industry sales hit a record $555.90 billion in 2021, registering a 26.2% surge year-over-year. Global semiconductor sales totaled $50.70 billion in January 2022, up 26.8% year-over-year. The bullish sentiment surrounding the industry is evidenced by the iShares Semiconductor ETF (SOXX), which has gained 13.7% over the past year.
