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Semiconductor companies play a crucial role in the technology sector, designing and producing computer chips and related components. That's exactly why semiconductors have been at the center of hawkish trade talk, with the Biden administration signaling it's set to clamp down on companies that ship advanced chip equipment to China, like ASML (ASML) - and separately, industry-critical Taiwan Semiconductor (TSM) is trading down after GOP nominee Donald Trump told Bloomberg Businessweek that Taiwan “did take about 100% of our chip business.”
Looking beyond today's geopolitical chatter, semiconductor stocks are poised for double-digit growth in 2024. Industry forecasts predict a promising 13.1% rise in chip sales for the year, reversing a decline in 2023. This positive trend is already reflected in the 15.8% monthly increase in global semiconductor sales in April, reaching $46.4 billion.
