Consumers’ growing reliance on tech products and solutions and rising corporate and government investments to enhance chip production should drive the semiconductor chip industry’s growth. Despite the persistent chip shortage, global semiconductor sales increased 23% year-over-year in the first quarter.
Investors’ interest in this space is evident from the SPDR S&P Semiconductor ETF’s (XSD) 4.1% returns over the past year versus the SPDR S&P 500 Trust ETF’s (SPY) 4.8% loss. The global semiconductor market is expected to grow at a 9.2% CAGR to $893.10 billion by 2029.
