By Khaled Maalej, CEO, VSORA
Semiconductor Industry Innovation Steams Ahead in 2023
Due to a combination of events, the technology equity market suffered a steep drop in 2022. Some of those events were unrelated, including the COVID pandemic and the war in Ukraine. Others were triggered by policy decisions such as containment of China by the U.S. that disrupted the semiconductor supply chain and unbalanced the production of chips.
While I think the technology stock market hit bottom, predicting the market for the year ahead is like reading the future from tea leaves. Still, early signs indicate that the Chip Act approved by the U.S. congress and signed into law by President Biden is prompting the private industry to invest heavily in semiconductors. One obvious example is the construction of new fabs in U.S. and Europe. All considered, I predict that the stock market in 2023 will see an inversion and begin to rise again, more likely in the second half of the year.
