The semiconductor industry is poised for steady growth thanks to the rising demand for semiconductors and the rapid digitization. We believe ON Semiconductor, (NASDAQ:), and Xilinx should both benefit. Which stock is better to buy right now? Find out more. ON Semiconductor Corporation (ON), based in Phoenix, Ariz. manufactures, and sells semiconductor parts for various electronic devices around the world. There are three main segments of the company: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. Xilinx, Inc., San Jose, Calif., designs, develops, markets, and sells programmable devices worldwide. It offers integrated circuits as programmable logic device.

Global semiconductor shortages have impacted many industries. The semiconductor industry has seen its chip prices soar due to this shortage. Although large investments have helped semiconductor producers increase production, it is likely that the shortage will not be resolved soon. The industry will see an increase in demand due to growing demand for electric cars (EVs) and the rising need for hybrid technologies. Fortune Business Insights estimates that between 2021-2028, the global semiconductor market will experience an 8.6% annual growth rate. Both ON and XLNX will therefore benefit.

Over the last six months, ON’s price has increased 65.6% while XLNX returned 63.1%. Also, ON’s 91.2% gains year-to-date are significantly higher than XLNX’s 47.8% returns. Moreover, ON is the clear winner with 104.1% gains versus XLNX’s 45.7% returns in terms of the past year’s performance.

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