Semiconductors are the building blocks of modern technology and the world can't get enough of them right now. A global chip shortage began during the pandemic, and with supply chain disruptions continuing, it's still causing problems in chip-reliant spaces such as the automotive industry. Over the long term, our growing use of technology will demand more semiconductors. According to DigiTimes Research, that will push the chip market from its 2021 total value of $556 billion to more than $1 trillion by the end of the decade.

Chip giant Intel (NASDAQ: INTC) is investing heavily in its plans to remain a key industry supplier over the decades ahead. However, the stock has fallen by more than 50% from its high in a fearful market worried about how much Intel is spending. Is the market's pessimism justified, or does Intel offer long-term investors a potential opportunity for outsized returns?

It's remarkable how such a vital resource can come from such concentrated sources. Roughly half of the semiconductors worldwide that are manufactured by third-party foundries -- as opposed to those made in-house by the companies that design and sell them -- are produced by a single company, Taiwan Semiconductor. South Korean company Samsung is the second-largest third-party manufacturer, though it also produces its own chips. The rest of the world's supply is somewhat fractured among numerous sources. But a large number of major chip companies are "fabless" -- reliant on foundries (most of them in Asia) for their production. And that potentially leaves the United States vulnerable to further supply disruptions. The heightened geopolitical tensions with China only underline that issue.

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Source Fool.com