Since the onset of the COVID-19 pandemic, supply chain bottlenecks have been a major hindrance for the semiconductor industry. The global chip shortage has been further exacerbated by increasing sanctions on Russia in response to its invasion of Ukraine. According to Pat Gelsinger, CEO of Intel, the semiconductor chip shortage will now drift into 2024. The primary reason is the unavailability of key manufacturing tools acting as a barrier to expanding the capacity levels required to meet the heightened demand.
Nevertheless, the growing consumption of consumer electronics and use of advanced technologies are expected to propel the industry’s growth. The semiconductor market is projected to reach $893.10 billion in 2029, growing at a 9.2% CAGR. Furthermore, the Semiconductor Industry Association (SIA) has urged Congress to work expeditiously to reach an agreement on the bill that allocates $52 billion to the CHIPS Act and provides an investment tax credit for domestic semiconductor manufacturing and design.
