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4 Chip ETFs You Should Not Ignore

Published 08/31/2021, 03:01 AM
Updated 07/09/2023, 06:31 AM

Chips, the basic building blocks of computation, have become integral in everything from smartphones to cars, laptops, PCs, video games and data centers. As the pandemic supercharged the demand for computing, the world faced the worst chip shortage in many years.

Most advanced chips are designed in the US, but only about 12% are manufactured here. Taiwanese chipmaker TSMC TSM, the world’s largest contract chip manufacturer, accounts for more than 90% of the world’s most advanced chips. The company plans to increase prices of most chips by 10% to 20%, per WSJ.

We have also seen an acceleration in the industry consolidation, with Nvidia’s NVDA plan to acquire chip designer Arm Holdings for about $40 billion and AMD’s AMD $35 billion deal to purchase Xilinx (NASDAQ:XLNX) XLNX. Western Digital WDC is planning to merge with Japan’s Kioxia in a deal exceeding $20 billion.

To learn about iShares PHLX Semiconductor ETF SOXX, VanEck Vectors Semiconductor ETF SMH, SPDR S&P Semiconductor ETF XSD and Invesco PHLX Semiconductor ETF SOXQ, please watch the short video above.


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Advanced Micro Devices, Inc. (NASDAQ:AMD

Xilinx, Inc. (XLNX): Free Stock Analysis Report

Western Digital Corporation (NASDAQ:WDC

NVIDIA Corporation (NASDAQ:NVDA

Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report

VanEck Vectors Semiconductor ETF (SMH): ETF Research Reports

iShares Semiconductor ETF (SOXX): ETF Research Reports

SPDR S&P Semiconductor ETF (XSD): ETF Research Reports

Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports

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