As the current semiconductor shortage is expected to be addressed, thanks to the large-scale investments across the globe to boost production, we believe fundamentally strong under-the-radar semiconductor stocks Axcelis Technologies (NASDAQ:ACLS) and Cohu Inc. (NASDAQ:COHU) could be worth buying. Let’s discuss.The global semiconductor shortage has created production disruptions in several industries, primarily consumer electronics and electric vehicles (EVs). However, the Biden administration is considering invoking the Defense Production Act (DPA) to identify possible semiconductor chip hoarding and ease bottlenecks that have hindered U.S. car production and caused consumer electronics shortages. Furthermore, a new program, National Semiconductor Economic Roadmap (NSER), introduced by Arizona leaders to focus on improving American infrastructure and supply chains for the semiconductor industry, is projected to propel the growth of chip makers.
While the global chip shortage is expected to persist for some time because of lean inventory and production delays, the initiatives of governments worldwide to create a more secure supply chain should bode well for the industry in the long run.
Given this backdrop, quality under-the-radar semiconductor stocks Axcelis Technologies Inc. (ACLS) and Cohu Inc. (COHU) could be solid bets now.