Following the supply headwinds, the semiconductor industry has been witnessing a fall in demand due to the uncertain macroeconomic environment and weakening consumer demand. However, the demand for semiconductors is expected to grow in the long run, with their increasing usage in consumer electronics, automobiles, healthcare equipment, and weapons systems.
Moreover, earlier this year, President Joe Biden signed the Chips and Science Act, which aims to strengthen U.S. competitiveness with China by investing billions of dollars in domestic semiconductor manufacturing and scientific research. The Biden administration has allocated $52 billion for chip manufacturing to boost the domestic semiconductor industry.
