The global chip shortage started in 2018 and 2019 as escalating trade conflicts disrupted semiconductor supply chains, then worsened in 2020 as the pandemic exacerbated those disruptions. Many top chipmakers and analysts expect the ongoing crisis to last through 2023.
That shortage is generating tailwinds and headwinds for certain companies, but it can be tough for investors to tune out the noise and separate the winners from the losers. Let’s examine five main aspects of the chip shortage — and how they could affect certain sectors and stocks.