Semiconductors are those little chips or circuits that are essential to drive computers, appliances, electronics, and all other manner of technology. 

They have also driven the stock market in recent years, with many of the companies in this industry posting huge gains over the past decade. In fact, only three other industries have outperformed semiconductors over the past 10 years.

It can be a little confusing for investors, because often, semiconductor stocks are lumped in with other types of technology stocks in technology-focused exchange-traded funds (ETFs). A good broad-based technology ETF should be a pillar of a diversified portfolio, but investors might want to add a little more alpha with an ETF that includes only stocks from the booming chipmaking industry.

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Source Fool.com