While the Russia-Ukraine war has exacerbated global logistical challenges, the overwhelming demand for semiconductors from consumer electronics, electric cars, and other industries should hold investors' interest in the sector. Furthermore, according to Counterpoint Research, the global semiconductor chip shortage will likely ease during the second half of 2022 as the demand-supply gaps decrease across most components.
Also, President Biden last week urged Congress to reconcile its differences on the Bipartisan Innovation Act. The House and Senate have passed their own versions of the bills in a widely bipartisan fashion and now must come to a consensus in a conference committee. The bill will boost domestic semiconductor production and bolster competitiveness with China. The global semiconductor market is anticipated to reach $820.1 billion by 2028, growing at a CAGR of 5.3%.
