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Time for America to Step Up

Written by Monica Savaglia
Posted February 15, 2022

There’s a worldwide rush to manufacture semiconductors happening right now, and I’m not the least bit surprised.

You see, as the pandemic progressed, consumer demand increased. People were on their phones, computers, tablets ordering anything and everything that they thought they needed. But a few problems were arising while demand was surging. 

Most of these things that people were ordering were coming from different countries, which means there were a lot more processes and people involved before the product could get to the consumer. And during a global pandemic, that becomes less seamless and more stressful for everyone involved. 

Production in factories had to be decreased to obey health protocols. That meant there were fewer workers in factories creating these products. There was also a decrease in workers involved in various processes like shipping and distribution both from the outgoing country and incoming country. 

This is how the world has been operating for decades, but it took a global pandemic to realize that maybe these processes weren’t as reliable as we expected. Especially as it became harder for people to get necessities and for businesses to stock their shelves. Semiconductors became a victim of these supply chain woes.

High in Demand

Semiconductors are required in so many of our devices and items that we use every single day. They are the brains of our electronics. They can be found in electronic devices, computers, health care, military systems, transportation, clean energy… and so much more. Without them, you wouldn’t have things like your smartphone, radio, TV, computer, video games, or the cool features in your new car. 

According to the Semiconductor Industry Association, about three-quarters of global semiconductor production capacity sits in four Asian locations: Taiwan, South Korea, China, and Japan.  

That’s why the U.S. needs to begin efforts to manufacture semiconductors in the country — the lack of access to semiconductors due to supply chain issues has disrupted many important industries. 

Automakers thought they were making a good decision when they decided to cut chip orders in early 2020 because of the decrease in vehicle sales. However, when demand picked back up, the semiconductor industry shifted production lines to meet different demands. 

So automakers essentially had to get to the back of the line, which put their businesses in a difficult situation. If there were more semiconductor factories within the U.S. to supply chips to these automakers, that would lessen the wait time. Production would be back on and it wouldn’t have to be shipped overseas.

The need for the U.S. to become a leader in the semiconductor industry has become apparent and is probably one of the reasons why investing in U.S. chip production has risen recently.

Samsung Electronics has plans for a $17 billion chip factory in Texas that will focus on semiconductors for 5G cellular networks, self-driving cars, and artificial intelligence. Intel, Taiwan Semiconductor Manufacturing, and Texas Instruments are also focused on increasing America’s semiconductor production.

Even President Biden is pushing for the funds to bring semiconductor production to the U.S. In a recent meeting, Biden said:

We have to step up our game… I’m ready to… make a once-in-a-generation investment in America’s future.

This is America’s future. 

It’s Time for America to Step Up 

Recently the U.S. House of Representatives passed a bill that would allocate hundreds of billions of dollars toward researching and producing semiconductors in the U.S. This act is 2,900 pages long and is called the America COMPETES Act of 2022.

The act has been designed to get America closer to being competitive with China when it comes to manufacturing microchips. $52 billion is expected to be spent on manufacturing capabilities and another $300 billion for research and development. America can't afford to sit on the sidelines any longer.

I don’t need to tell you twice — the semiconductor industry is heating up and the U.S. government wants a piece of the action... Do you?

The demand for semiconductors isn’t going down anytime soon, so it might be wise of you to start considering the investment opportunities within the industry. 

As you can imagine, there are already a lot of options out there, which makes it even harder to commit to one investing opportunity. To find a company that has a bright future ahead and that could put some gains in your portfolio.

Well, you’re at the right place at the right time. I have a presentation that I want to share with you about a company that possesses those qualities of a bright future ahead. Not to mention, it’s a U.S.-based company and it has been certified by the Department of Defense.

This small company was part of that recent private meeting hosted by President Biden in which the chip shortage was discussed. In attendance were other CEOs of tech giants like Google, HP, AT&T, Dell, Ford, General Motors, and many more. 

Without a doubt, this small company is set to be a key player within this lucrative industry. 

Get full access to the presentation here.

Until next time,

Monica Savaglia Signature Park Avenue Digest

Monica Savaglia

Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.

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