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The semiconductor industry has struggled with production bottlenecks in the first half of 2021 amid growing demand. However, with increased focus and initiatives by governments and industry giants, the industry is making a comeback. According to a Semiconductor Industry Association (SIA) report, the worldwide sales of semiconductors stood at $44.50 billion in June 2021, reflecting a 29.2% improvement year-over-year. Also, sales during the second quarter of 2021 were up 8.3% sequentially. The demand for chips is expected to increase over an extended period as the world races toward technological advancements and sustainability goals. Both TSM and UMC are prominent players and should benefit from the industry tailwinds.
UMC has gained 8% in price over the past month, while TSM has returned 2%. Also, UMC’s 34.9% gain year-to-date compares with TSM’s 9.1% returns. In terms of their past year’s performance, UMC is the clear winner with 221.2% in price gains versus TSM’s 50.2%.
