The skyrocketing demand for semiconductors and efforts by governments worldwide and private enterprises to eliminate the global chip shortage are expected to bolster the semiconductor industry's growth. Given this backdrop, under the radar semiconductor stocks Onto Innovation (NYSE:ONTO) and Tower Semiconductor (NASDAQ:TSEM) are expected to be valuable additions to one’s watchlist. Read on.The surging demand for semiconductor chips from the consumer electronics and electric vehicle (EV) industries created a global chip shortage when semiconductor foundries were forced to close for some time last year due to pandemic-led restrictions. Governments and private businesses worldwide have of late been investing heavily to boost global chip production to support digital transformation and reach carbon neutrality.
Pat Gelsinger, Chief Executive Officer of Intel Corporation (NASDAQ:INTC), estimated that chips would account for one-fifth of the cost of an automobile in 2030 as cars start to run on electricity increasingly, representing vast scope for the industry.
The global sales of semiconductors are expected to increase 8.8% in 2022. Considering this industry's improving growth prospects, under-the-radar semiconductor stocks Onto Innovation Inc. (ONTO) and Tower Semiconductor Ltd. (TSEM) could be good additions to one’s watchlist.