The chip shortage is likely to persist through 2022, despite wishful thinking that it could ease by midyear, a semiconductor company executive says.

Synaptics Chief Executive Michael Hurlston says all signs point to the chip shortage continuing. The semiconductor industry is dealing with limited foundry capacity and chip demand remains "red hot," Hurlston told Investor's Business Daily.

"It's not getting better," he said. "A lot of people have written that maybe it gets better in the second half (of 2022) with some easing. We don't see that."

The optimistic forecasts for the end of the chip shortage are not based on hard data, he said.

Chip Shortage Capping Growth Potential

"Demand continues to rip and there's nothing that's increasing supply, particularly on the nodes that are most impacted," he said. "So, I don't see it getting better anytime soon."

He added, "The folks that are talking about the second half getting better (believe) it's far enough out that they can change their mind."

Widespread chip shortages have crimped production of automobiles, personal computers, home appliances and others devices.

Meanwhile, most semiconductor companies have managed well despite the chip shortage situation, Hurlston said.

However, semiconductor stocks have fallen recently over concerns about slowing growth.

"The headline is the supply and that's capping everybody's growth potential," Hurlston said.

Synaptics Stock Ranked No. 1

Synaptics stock is tied for first place with Zebra Technologies in IBD's Electronics-Miscellaneous Products industry group. Both companies have an IBD Composite Rating of 94 out of 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

San Jose, Calif.-based Synaptics makes chips for a range of computer interface applications, including touch, display, audio and video.

On the stock market today, Synaptics stock fell 2.5% to 252.09 in an overall down day for tech stocks.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.