Even though the ongoing global semiconductor shortage exacerbated by rising Covid-19 cases in China and the Russia-Ukraine war has impacted several industries, the semiconductor industry has been thriving due to the resultant increase in the prices of chips. In addition, Intel’s Pat Gelsinger expects the semiconductor industry to suffer supply shortages until 2024. Furthermore, the passage of the $52 billion CHIPS Act will likely strengthen domestic semiconductor manufacturing and research. According to BlueWeave consulting, the global semiconductor market is estimated to grow at a CAGR of 5.2% between 2022 and 2028. Therefore, both Broadcom Inc. (AVGO) and Texas Instruments Incorporated (TXN) should benefit.
AVGO designs, develops, and supplies semiconductor infrastructure software solutions. It operates through two segments, Semiconductor Solutions; and Infrastructure Software. TXN designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog; and Embedded Processing.
