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4 Chip ETFs You Should Not Ignore

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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 - 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 - Free Report) plan to acquire chip designer Arm Holdings for about $40 billion and AMD’s (AMD - Free Report) $35 billion deal to purchase Xilinx (XLNX - Free Report) . Western Digital (WDC - Free Report) is planning to merge with Japan’s Kioxia in a deal exceeding $20 billion.

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