Increasing investments to ramp up semiconductor chip production to meet high demand from several industries should drive the semiconductor industry’s growth. These investments, along with technological breakthroughs in chip manufacturing, will benefit Synaptics and Qualcomm (NASDAQ):. What stock should you buy? You can read more about Synaptics Incorporated, (SYNA), and Qualcomm Incorporated. QCOM in San Diego is a multi-national semiconductor and telecoms equipment company. They develop and deliver products and services that use code division multiple access (CDMA). This technology can be used to create and maintain digital wireless communications equipment as well as satellite ground station systems. SYNA, a San Jose-based semiconductor company, develops and sells custom-designed products and solutions for mobile computing, IoT and communications. SYNA also offers audio input and out System-On-Chips, high-definition vision and SoCs as well touch controllers and touchpads.

In spite of the worldwide shortage in semiconductor chip production, global sales grew by 27.6% over the past year. And investor optimism in this space is evident in the SPDR S&P Semiconductor ETF’s (XSD) 21.1% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 6.7% returns.

To stabilize the chip supply, governments and companies will need to make more investments to tackle the worldwide chip shortage. This is expected to happen by 2022. This, along with recent technological breakthroughs in the chip manufacturing process, should drive the industry’s growth. By 2026, the global semiconductor market will grow by 7.7% and reach $778 billion. SYNA and QCOM should both benefit.

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