Substantial policy support from federal and state governments worldwide in the face of a global supply crunch should allow semiconductor companies Veeco Instruments (NASDAQ:VECO) and SemiLEDS (LEDS) to grow significantly in upcoming months. But which is a better buy now. Read more to find out.Veeco Instruments, Inc. (VECO) provides process equipment solutions that enable the production of high-tech microelectronic devices such as light-emitting diodes (LEDs), power electronics, hard disk drives, MEMS, wireless devices and semiconductors worldwide. The company serves customers in the HB-LED, solar, data storage, semiconductor, scientific research, and industrial markets.
SemiLEDS Corporation (LEDS) is a Taiwan-based company that develops, manufactures, and sells LED chips and components. The company’s products include entertainment LEDs that are used for general lighting applications, including street lights, commercial, industrial, system, and residential lighting.
The rising demand for electronics amid the remote working era coupled with integration of tech in virtually every industry has accelerated the demand for semiconductors worldwide. This has resulted in a global semiconductor shortage, causing multiple industries such as electric vehicles and 5G networking to lose out on billions annually. As a result, governments worldwide have been investing significantly to boost their semiconductor production. Therefore, the global semiconductor manufacturing equipment market is expected to grow at a CAGR of 3.9% to reach $53.20 billion by 2027.