Semiconductors: still processing charge brought on by high demand

With the world becoming more technology dependent during the Pandemic, semiconductor chips have become quite the hot commodity. Needed for almost anything tech-related - from laptops to phones to gaming devices to tech-dependent cars - semiconductor chips could not have be produced fast enough over the last year and a half, as extremely high-demand has caused a shortage of processor chips during the latter part of 2020 and the early part of 2021.

Though the scarcity of chips upended many industries, it was good news for chip makers. And although it’s unclear how long the chip shortage will last and how it will continue to impact other industries, one thing is certain - this demand has supercharged the industry. As other sectors have struggled to find sustained success during last few months, the semiconductor industry has remained steady.

The demand for semiconductors can be seen in the MVIS US Listed Semiconductor 25 Index (ticker: MVSMH), which tracks the 25 largest and most liquid US-listed companies that derive at least 50% of their revenues from semiconductors. MVSMH is up nearly 6% over the last month and nearly 53% over the last year. With the world becoming more and more dependent on technology, the demand for semiconductor chips should only continue to increase.

MVIS US Listed Semiconductor 25 Index

31/07/2020-31/07/2021