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Amid a global chip shortage, the semiconductor industry witnessed 27.6% year-over-year sales growth in the third quarter. Governments and enterprises are working together to address the chip shortage and are making considerable investments in the industry to meet the rising demand from various sectors worldwide. Chipmakers’ ongoing efforts to manufacture advanced chips and major technological breakthroughs position the industry well for growth.
Investor optimism in this space is evident in the SPDR S&P Semiconductor ETF’s (XSD) 15.4% gains over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 6.4% returns. The global semiconductor market is expected to grow at a 7.7% CAGR to $778 billion by 2026. So, both TSM and ASML should benefit.
