Chips, the basic building blocks of computation, have become integral in everything from smartphones to cars, laptops, PCs, video games and data centers. As the pandemic supercharged the demand for computing, the world faced the worst chip shortage in many years.

Most advanced chips are designed in the US, but only about 12% are manufactured here. Taiwanese chipmaker TSMC (TSM Quick QuoteTSM - Free Report) , the world’s largest contract chip manufacturer, accounts for more than 90% of most advanced chips. The company plans to increase prices of most chips by 10% to 20%, per WSJ.

We have also seen an acceleration in the industry consolidation, with Nvidia’s (NVDA Quick QuoteNVDA - Free Report) plan to acquire chip designer Arm Holdings for about $40 billion and AMD’s (AMD Quick QuoteAMD - Free Report) $35 billion deal to purchase Xilinx . Western Digital (WDC Quick QuoteWDC - Free Report) is planning to merge with Japan’s Kioxia in a deal exceeding $20 billion.

To learn about iShares PHLX Semiconductor ETF (SOXX Quick QuoteSOXX - Free Report) , VanEck Vectors Semiconductor ETF (SMH Quick QuoteSMH - Free Report) , SPDR S&P Semiconductor ETF (XSD Quick QuoteXSD - Free Report) and Invesco PHLX Semiconductor ETF (SOXQ Quick QuoteSOXQ - Free Report) , please watch the short video above.