The world is facing an acute shortage of semiconductors, a problem that has persisted since late last year.

Top semiconductor manufacturing companies are warning that this crisis could last till 2023 as demand for electronic devices explodes due to the pandemic.

In response, global chipmakers have invested heavily to boost their manufacturing capacity, with more complex chips needed to power electric vehicles and traffic management systems.

For instance, major Taiwanese chipmaker TSMC (TPE: 2330) plans to invest US$100 billion in the next three years to expand its manufacturing capacity.

Meanwhile, United Microelectronics Corp (TSE: 2303), another Taiwanese chip manufacturer, expects to spend US$1.5 billion on new equipment this year, up 50% from 2020.

AEM Holdings Ltd (SGX: AWX), which is widely believed to provide Intel Corp (NASDAQ: INTC) with equipment to test its chips, is a direct beneficiary of this increased demand.

Since the start of 2020, AEM’s share price has doubled