Jeff Brown’s Prediction Series: The Next Stage of the “Tech Shock”

[The Bleeding Edge]( Van’s note: Van Bryan here, Jeff Brown’s longtime managing editor. At the end of every year, I sit down with Jeff to discuss his biggest predictions for the coming year. Remember, you can always catch up on earlier editions in this series by going [here](. Today, I sit down to ask Jeff about the ongoing semiconductor shortage, what he refers to as the “Tech Shock.” How bad is it? What happens next? And how can investors profit? All the answers, and more, below… --------------------------------------------------------------- Jeff Brown’s Prediction Series: The Next Stage of the “Tech Shock” Van Bryan (VB): Jeff, let’s discuss the semiconductor shortage, what you refer to as the “Tech Shock.” Can you bring us up to speed? Jeff Brown (JB): I’m sure most of us have heard the term “semiconductors.” Sometimes they’re referred to as “computer chips” or just “chips.” And we typically associate them with smartphones and computers. But semiconductors are the “brains” of all modern electronics. And the truth is that semiconductors are critical to our daily lives. Whenever we wash our clothes, turn on the air conditioning, stream our favorite show, or drive to work, we have semiconductors to thank. And what’s happened in 2021 is that we simply can’t produce enough of these semiconductors to meet demand. And we can see the results for ourselves. The latest gaming consoles like the PS5 and the Xbox Series X are virtually impossible to buy. I would know. I’ve been trying to buy one for my son for months. New appliances are either not available or require several weeks to deliver. Earlier this year, thousands of unfinished Ford pickup trucks were parked at the Kentucky Speedway in Sparta. These trucks were there because the manufacturer couldn’t get the necessary components to complete the vehicles. And you’re right – I’ve referred to this event as the “Tech Shock.” That’s because it’s reminiscent of the “Oil Shock” of the early 1970s. Some of us may remember the effect of that event. Americans waited for hours to pay inflated prices for rationed fuel. We’re seeing the same thing play out with semiconductors. Recommended Link [iPHONE WARNING: Obsolete?]( [image]( Why is Jeff Brown throwing away a perfectly good $1,000 iPhone? According to him, Apple is about to make a critical announcement that will send shockwaves through Wall Street. [If you own a smartphone, click here now…]( Because this is guaranteed to affect you. HINT: The iPhone days are coming to an end. [Click here now.]( -- VB: How bad has it gotten? JB: I’ll share one detail that gives us a pretty good idea. The “lead time” for semiconductors is the period between ordering a chip and its delivery. Historically, this might have been 10 weeks or so. But in October, the time from order to delivery was 21.9 weeks, on average. It’s gotten so bad that even Apple is feeling the effects. The company originally planned to produce 90 million iPhone 13s this quarter. But Apple is expected to fall short of that goal by about 10 million units. They just can’t source the chips. Having worked at an Apple supplier myself – NXP Semiconductors – the one thing that you don’t want to do is let Apple down. This leads me to believe the shortage is worse than many believe. Recommended Link [Man Who Recommended Bitcoin Before It Soared 170X Makes NEW Prediction]( [image]( Teeka Tiwari — the man voted the #1 Most Trusted Crypto Expert — just made a SKY-HIGH crypto prediction. In this new broadcast, recorded live in Miami… Teeka reveals his #1 MUST-OWN CRYPTO today… Over the next decade, this crypto could become BIGGER than Facebook, Amazon, Apple, Microsoft, and Google. But in this new video, Teeka reveals why it’s critical you get positioned BEFORE January 1st, 2022. His previous predictions have received over 25 million+ views… But this could be his most important prediction yet. [Click Here to Watch Now (#1 Crypto to Own Today Named Inside).]( -- VB: Where do you see this going in 2022? JB: My longtime readers already know this, but I worked as a technology executive in the semiconductor industry for years. This sort of thing has happened before. And it usually plays out in three phases… Phase One is the shortage phase. The industry simply can’t produce enough semiconductors to meet demand. We’re already there, clearly. Phase Two is the building phase. At this point, the industry reacts. They build more semiconductor fabrication facilities (fabs) to meet the new demand. [Bill Gates, Mark Zuckerberg, Elon Musk and Jeff Bezos all Betting on S.C.G.]( And in Phase Three we actually see a supply glut. We overbuild manufacturing capacity and supply starts to outpace demand. We’ve now entered Phase Two. TSMC (Taiwan Semiconductor Manufacturing Company) is already committed to a major plant in Arizona. We have GlobalFoundries planning to break ground on a new facility in upstate New York. Even Intel is beginning to spend $20 billion to build its new foundry business. [SCREAMING Buy Alert]( And there were some very smart policies enacted to support this growth. In June, the U.S. Senate passed the CHIPS for America Act or CHIPS Act. This law approved $52 billion in spending to support U.S. semiconductor manufacturing. I’ll skip ahead to my next prediction along these lines. I expect 2022 will be the year we see these funds deployed to help bring semiconductor manufacturing back onshore. But we need to remember that these facilities can’t be built overnight. They take years to plan and build. So the semiconductor shortage – the “Tech Shock” – isn’t going to be fixed right away. This is something we’ll be dealing with in 2022 and perhaps into 2023. Recommended Link [Are you paying attention yet?]( [image]( Something strange is going on in America... Just about everyone can feel it… But very few can make sense of it. One of America’s top tech investors, Jeff Brown, is convinced something shocking is about to happen... And it could hollow out what’s left of Manhattan… Silicon Valley… Washington DC… And the rest of America’s once-great cities… But at the same time, he believes it will create the greatest wealth opportunity in human history. This is your chance to create generational wealth… But only if you understand what’s happening. [Click here for more info before it’s too late.]( -- VB: So you see semiconductor manufacturing coming back onshore. This sounds like your “American Manufacturing Renaissance” prediction. Could you expand on that? JB: COVID-19 and the economic lockdowns taught us an important lesson. They showed us that our global supply chains are fragile. We hardly notice it when things are working well. And so for decades, America shipped much of its manufacturing capacity offshore. Semiconductors are a perfect example of that. And of course, we’re now seeing the effects when it goes wrong. What’s going to happen is a reversal of that trend. Manufacturing will come back onshore. Thanks to automation and machine learning, the cost to manufacture in the United States is very comparable to what it costs in mainland China. And the advantages of having our manufacturing base close to home far outweigh whatever small cost advantage there is from manufacturing overseas. I’ve referred to this idea as the “American Manufacturing Renaissance.” VB: And this will apply to semiconductors? JB: It will. Semiconductor manufacturing is coming back to the United States. But it won’t just be semiconductors. This trend will apply to virtually any good we need. And it will be accomplished thanks to technologies like additive manufacturing, or 3D printing, as well as artificial intelligence and machine learning. So imagine you place an order for a specialized component on Sunday night. That item would be 3D-printed overnight, put onto a self-driving semi-truck, and delivered to the front door of your factory. That’s a hypothetical scenario, but now imagine it at scale. It’s how we make our economy “antifragile,” to borrow a term from author Nassim Taleb. VB: You had a prediction for 3D printing for 2021. You predicted that the world’s first 3D-printed rocket would go into orbit this year. JB: That’s right. And that’s absolutely going to happen. A company called Relativity Space had originally planned to launch its 3D-printed rocket, the Teran 1, into orbit this summer. But now it looks like the launch will be scheduled for some time in early 2022. That will be exciting to watch. And when it happens, it will be an incredible use case for this technology. And it will demonstrate that we can manufacture complex components and items onshore. The technology for this manufacturing renaissance is already here. And we’re already seeing some early adopters. The next phase is the acceleration phase. That’s where we’re heading in 2022. VB: And when you look into 2022, what do you think is the best way for investors to profit from this trend? JB: In Exponential Tech Investor, we already have two incredible 3D-printing companies in our model portfolio. And when I think about beneficiaries of the American Manufacturing Renaissance, one company comes to mind. It’s a small-capitalization semiconductor company that has some incredible technology. And I believe it will be a beneficiary of that $52 billion CHIPS Act. Out of fairness to my paid-up readers, I won’t give the name here. But I did get the chance to tour the company’s facility in upstate New York earlier this year, and I came away even more convinced of the investment potential here. [Van’s note: To see Jeff’s full presentation on this small-cap tech stock, [go right here]( Jeff (second from left) and his team touring the semiconductor fabrication facility earlier this year. VB: Thanks for your time, Jeff. JB: Of course. --------------------------------------------------------------- P.S. Tune in tomorrow for the next installment in Jeff Brown’s 2022 Prediction Series. I’ll ask Jeff about ESG (Environmental, Social, and Governance) investing, when he thinks we’ll see an active nuclear fusion reactor, and Jeff will reveal his biggest prediction for quantum computing. You won’t want to miss it. And as Jeff shared today, the Tech Shock isn’t going away anytime soon. That spells an opportunity for savvy investors. To get Jeff’s full Tech Shock profit plan, [go right here](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com. --------------------------------------------------------------- In Case You Missed It… [Am I crazy for offering a deal this good? (Special End of Year opportunity)]( Why on Earth would I offer my wildly popular research service – Jeff Clark Trader – for just 99 cents? After all, thousands of people have happily paid up to $249 to access a lifetime subscription to this service. Because I want to prove that ANYONE – including you – can learn how to use my options trading blueprint. Even if you’ve never traded options before. [Claim your 99-cent deal here.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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