Deepening chip shortage, slowing demand for PCs and peripherals, and rising tensions over Taiwan have been affecting the semiconductor industry lately. 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 drive the industry’s growth.
The worldwide semiconductor sales increased 13.3% year-over-year to $152.5 billion during the second quarter of 2022. Investors’ interest in this space is evident from the SPDR S&P Semiconductor ETF’s (XSD) 7.3% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 4.7% returns.
