Good evening - The Covid-19 pandemic is claiming another casualty. And it’s one that could threaten the “V-shaped” recovery we are being promised. I’m referring to semiconductors. The chips have become ubiquitous in so many devices we use every day. Our smartphones, tablets, laptops, and in some cases appliances and personal assistants all are powered by these powerful chips. And if you’ve ever tried working on your car, you know that semiconductor chips are used in many different ways. The problem is that the industry is pivoting to electric vehicles and, eventually, autonomous vehicles. But in the here and now, there is still demand for chips in internal combustion vehicles. When the pandemic first started, the shortage of chips wasn’t as noticeable. Auto manufacturers were shut down. And people weren’t buying new cars, let alone doing much driving. But that is starting to change. Demand for new cars is increasing. Part of this is because Americans are calculating that hitting the open road may be the most convenient travel option in 2021. But electric cars aren’t ready yet. And that means there’s a shortage of the chips needed for the mundane, but vital tasks of steering, braking, and even powering windows up and down. Part of the problem is that U.S. businesses are heavily reliant on countries like China and Taiwan for their semiconductors. In fact, only about 12.5% of semiconductor manufacturing is done in the United States. According to the consulting firm AlixPartners, the chip shortage could potentially cost the automotive industry over $60 billion in revenue in 2021. That loss will be felt throughout the entire supply chain from the dealers and automakers down to the smallest suppliers. And this is exactly the kind of slowdown the U.S. is desperately trying to avoid as the economy continues its recovery from the Covid-19 pandemic. It’s also why now is the ideal time to invest in the companies that are making semiconductors as well as their suppliers. That’s the focus of this special presentation. View the “7 Semiconductor Stocks Set to Gain From the Chip Shortage”
Matthew Paulson
MarketBeat.com | 
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