Can Investors Profit From the Semiconductor Shortage?
Supply shortages in the semiconductor sector are weighing on many stocks, both inside and outside the chipmaking industry. It's bad news for many stocks and their shareholders, but the unique situation also creates buying opportunities for semiconductor investors.
Here's a quick rundown of the chip shortages, followed by a couple of strong investment ideas.
The semiconductor industry relies on a brittle supply chain. Most chip designers don't have manufacturing lines of their own, depending on a small handful of third-party foundries to turn their blueprints into physical products. The leading foundries, in turn, have optimized their chipmaking operations for supplying processors to the global electronics manufacturing hubs in China and Taiwan.
Source Fool.com
