Several companies have been increasing their production of semiconductors to meet growing demand, aided by the increasing government and private investments worldwide. So, we think both ChipMOS (IMOS) and ON Semiconductor (ON) could benefit from the industry tailwinds. But which of these stocks is a better buy now? Read more to find out.Headquartered in Hsinchu, Taiwan, ChipMOS TECHNOLOGIES INC. (IMOS) is one of the world's largest semiconductor services companies, providing a full range of back-end testing services for liquid crystal display (LCD) drivers, high-density memory, and mixed-signal semiconductors. ON Semiconductor Corporation (ON) in Phoenix, Ariz., manufactures and sells semiconductor components for various electronic devices worldwide. The company operates through three segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group.
Amid the ongoing global semiconductor shortage, several companies have been ramping up production to meet the growing market demand. In addition, governments worldwide have been increasing investments in memory devices and integrated circuit (IC) components because the chips form the backbone of emerging autonomous driving technology and 5G-enabled devices, among others.
According to an IndustryARC report, the semiconductor market is expected to grow at a 5.9% CAGR between 2021 - 2026. So, as two of the established players in the semiconductor space, IMOS and ON should benefit from the favorable industry backdrop.