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The U.S. Senate passed a bipartisan tech and manufacturing bill in June to address the production bottlenecks and boost domestic manufacturing capacity. The bill allocates $52 billion toward semiconductor production, helping the industry to strengthen its supply chain. In addition, governments of many other countries are similarly investing in the industry to address the shortage. Due to its wide-ranging applications and favorable government policies, global semiconductor sales are expected to increase 19.7% in 2021 and 8.8% in 2022.
Given this backdrop, we expect popular semiconductor companies Texas Instruments Incorporated (NASDAQ:TXN), Micron Technology, Inc. (MU), and KLA Corporation (KLAC) to rally in price substantially in the coming months.
