With favorable government policies, substantial investments and positive supply chain management, the semiconductor industry is slowly recovering from shortages and problems. Due to the wide range of applications semiconductors have across many sectors, there is unprecedented demand for this industry. The CHIP Act, which is expected to be passed by Cirrus (CRUS), and Silicon Laboratories, (NASDAQ) should also boost the sector. Which stock is better? Find out more. Cirrus Logic Inc., Austin, Texas-based, is a fabless semiconductor firm that offers low-power and high-precision mixed signal processing solutions both in the United States as well as internationally. Silicon Laboratories Inc. (SLAB), a Silicon Laboratories subsidiary, is based in Austin and provides software and silicon for IoT, industrial, consumer and other markets. It offers mixed-signal, analog-intensive solutions that can be used in many electronic products for various IoT markets.

A growing demand for electronic consumer goods, the developing gaming industry and rising interest in electric cars (EVs), has created a huge market for semiconductors. This creates enormous opportunities for chipmakers for substantial returns. Worldwide sales of semiconductors increased 24 percent year-over-year, to $48.8 million in October 2021 according to the Semiconductor Industry Association’s (SIA). “Annual chip sales and units shipped are projected to reach all-time highs in 2021, with moderate annual growth expected in 2022,” said John Neuffer, SIA president and CEO.

It is expected that the proposed Creating Helpful Incentives for Produce Semiconductors for America Act or CHIPS Act with an allocation $52 billion for domestic semiconductor production, and incentives for investors in U.S. semiconductor manufacturing plants, will be passed. SLAB as well as CRUS will benefit due to the market’s favorable trends.

Continue reading on StockNews