U.S. manufacturers and companies are dangerously low on semiconductors…
According to a survey by the U.S. Commerce Department, key chip supplies are down to less than five days of inventory.
That’s significantly lower than 2019’s average inventory level of 40 days, underscoring the continued challenges of acquiring some of the most important semiconductors around.
Commerce Secretary Gina Raimondo noted that even though there had previously been some signs of improvements, U.S. companies are far from being out of the woods in terms of supply issues.
And while many semiconductor manufacturers have taken steps to bolster their outputs, the supply chain remains in a fragile place.
This is a trend Raimondo anticipates will continue to be an issue until overseas lockdowns and restrictions are lifted… or at least until the U.S. revives the Innovation and Competition Act – which would potentially provide $45 billion to chip makers to boost their manufacturing capabilities.
But given the fact that a variety of legislation has been stalled for months, consumers and analysts alike aren’t exactly confident a bill will make it through.
Still, it may not be all bad news…
Even though the automotive and consumer-electronic markets will further struggle to meet consumer needs, the strong demand alone should be more than enough to help prop up companies in the semiconductor space.
This is particularly true for material and part suppliers such as Lam Research (LRCX).
LRCX is a chip-equipment manufacturer. More specifically, it's a supplier of wafer fabrication equipment that allows semiconductor makers to create active components in their chips.
And it has played a pivotal role in the market since the emergence of the global chip shortage…
This has enabled LRCX to grow its revenue by 47% year over year in its most recent quarter. So, even though it hasn’t been immune to broader supply-chain disruptions, the chip-equipment maker has continuously reported robust wafer fabrication demand.
We’ll likely see this trend gain momentum moving forward as well. With the current chip supply and demand imbalance, semiconductor manufacturers have grown increasingly dependent on companies like LRCX.
And with major chipmaker Intel (INTC) projecting inventories will remain tight through 2022 and 2023, major competitors have all begun to invest billions to bolster their capacities.
This level of spending should benefit LRCX, as with increased capacity comes greater demand for much-needed components – driving up the price and demand of these parts in the process.
By now, you've no doubt seen the headlines about a global chip shortage.
GM and Toyota factories are shutting down…
Mass shortages of electronics are commonplace…
Everything from our food supply to medical device production is being strained to the breaking point.
And there is still no end in sight. As Intel reports, this shortage is set to continue for, “Several years.”
You may know it's happening. You may know something seems to be very wrong…
But what you probably don't yet realize what few so far have figured out…
Is the disturbing truth behind all this.
And the fact that when chip shortages like this one happened in the past, the investors who took the right steps made 90 times their money… while millions of others who ignored these shortages LOST 90%.
Every time you hear about the chip crisis, remember: what we're really witnessing isn't some passing inconvenience or temporary trend.
What we are seeing is the most polarizing technological and financial event of our lifetimes.
One that will be a godsend for the select few investors who understand it…
And a disaster for the millions of others that are caught in its wake.
Already, behind the scenes, the realization is setting in.
- The world's most important tech corporations, including Apple, Amazon, Google, and Microsoft, wrote an urgent plea to Congress, practically begging for help with this chip crisis fast.
- The White House has stated this chip shortage is its “Top and immediate priority.”
- Rumor has it some Americans are already hoarding items that could become scarce in the weeks ahead.
Now, a former computer chip executive with over 20 years of experience is stepping forward. To explain every detail about what this shortage really means for you… and what it will soon mean for our world.
Investors who navigated global chip shortages like this in the past saw 30… 40… and even 90 times their money. In some cases, in as little as a single year. While investors who ignored what was going on around them lost 90% of their wealth. This is here, it is serious, and you are running out of time to put yourself on the right side of history. Click here to learn the steps you can take right now to stay safe.