As customers brace for recession, the demand for chips is slowing, with a decline in demand for consumer electronics. Moreover, rising tensions over Taiwan make investors skeptical about the industry’s near-term prospects. Many analysts believe that the industry might witness a tough time ahead.
However, the signing of the $280 billion CHIPS and Science Act into law and the growing adoption of AI, cloud computing, 5G, robotics, gaming, and electric vehicles (EVs) are expected to help the industry stay afloat. The worldwide semiconductor sales increased 13.3% year-over-year to $152.5 billion during the second quarter of 2022.
