In the face of a global shortage, the semiconductor industry has aggressively expanded its production capacity. Because semiconductor demand is predicted to increase over the years, it is in a strong position to see double-digit growth within the next five year. We believe fundamentally sound chips stocks are therefore possible Analog Devices Lam Research Corporation, (NASDAQ:), KLA Corporation (KLAC), and Lam Research Corporation are all possible options. Let’s discuss these names.Analysts expect the ongoing global semiconductor shortage to continue in 2022 due to strong demand for electronics, electric vehicles (EVs), and other products. The semiconductor supply will improve as the industry leaders increase their production capacity as more factories are built. According to industry experts, the industry will grow between 15% and 20% over the next three years to five.

In order to be globally competitive, the U.S. government has taken steps to improve domestic semiconductor production. Although the U.S. The House of Representatives is still unable to approve the U.S. Innovation and Competition Act which includes the CHIPS Act. However, Gina Raimondo, U.S. Commerce Secretary, has asked the House for immediate passage of the legislation.

Given the digitization rate of almost all industries, there is a high demand for semiconductors. We believe that the renowned semiconductor stocks Analog Devices, Inc., Lam Research Corporation, (LRCX) and KLA Corporation, (KLAC), could prove to be good investments now.

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