Title: Semiconductor Stocks Rocked By Chip Shortages | Investor's Business Daily
Headings: Chip Shortages Hinder Automobile, PC, Consumer Electronics Production
Chip Shortages Hinder Automobile, PC, Consumer Electronics Production
Automakers Idle Plants Amid Chip Shortages
Robust PC Sales Keep Demand Elevated
Chip Shortages Good For Semiconductor Stocks
Chip Equipment Makers Lead Semiconductor Stocks In Performance
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Content: Semiconductor Stocks Rocked By Chip Shortages | Investor's Business Daily
Technology
Chip Shortages Hinder Automobile, PC, Consumer Electronics Production
PATRICK SEITZ
07:15 AM ET 01/29/2021
Semiconductor shortages are hindering the production of everything from personal computers and consumer electronics to automobiles. And some shortages are likely to linger throughout 2021, which is mixed news for semiconductor stocks. X
Some chipmakers have raised prices because of the tight supply but the shortages also are capping their upside sales potential. Meanwhile, semiconductor equipment vendors are seeing sales and their outlooks rise as foundries add capacity. "We expect semiconductor industry supply constraints on both wafers and substrates to only partially ease in second-half 2021, with some leading-edge (computing, 5G chips) tightness to extend into 2022," BofA Securities semiconductor stocks analyst Vivek Arya said in a recent note to clients. The semiconductor industry "has run into a wall" with just a handful of advanced foundries capable of making chips to support surging demand for 5G smartphones, next-generation video game consoles and cloud computing and artificial intelligence systems, Arya said. Taiwan Semiconductor Manufacturing Co. ( TSM ), known as TSMC, and Samsung are the two leading foundries. Automakers Idle Plants Amid Chip Shortages
In addition to shortages of leading-edge chips, the semiconductor industry is facing shortages of semiconductors built with mature process nodes, such as for automobiles and industrial equipment. Shortages of chips for the automotive industry have forced carmakers to idle factories. Automobile chip suppliers like Microchip Technology ( MCHP ), NXP Semiconductors ( NXPI) and Silicon Labs ( SLAB) have raised prices and warned of shortages lasting well into this year.