The ongoing shortage of semiconductors has exacerbated the pandemic-driven share price boom of manufacturers of the crucial technology, sparking concern the price rises are unsustainable and investors could be caught out by their outsized exposure to the sector.
The world's third-largest chip manufacturer Flex warned last week it expects the global shortage to continue until at least mid-2022, as the rebound in car sales and boom in tech demand continues to overwhelm supply. Renewed tensions between China and the US have also weighed on supply. The PHLX Semiconductor Sector (SOX) index, which is a market cap-weighted index composed of the 30 largest companies primarily involved in the design, distribution, manufacture and sale of semiconductors, has risen 143.5% from 18 March 2020 to 9 June 2021. This compares to a rise of around 80% in the fi...
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