Semiconductor stocks have been under pressure despite industry tailwinds as countries around the world work on ramping up domestic microchip research and production. The selling pressure has been presenting investors with better entry levels for semiconductor stocks.
In the U.S., the microchip sector was recently given a boost after Congress passed the CHIPS Act of 2022.
My view is that the funding will accelerate research and the building of microchip foundries in the U.S. Smaller chip companies like Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) could benefit from this major investment.
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