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Will chip shortages cause supply glut?

Article published by Nikkei Asia magazine

  • Current computer chip shortage is causing a massive investment in new chip manufacturing plants
  • “It took 50 years for the industry to grow to half a trillion dollars today, and now it is estimated that the industry will grow to a trillion in roughly eight years”; stated Tom Caulfield, CEO of GlobalFoundries in Singapore
  • Construction on close to 30 new fabs will start by end of 2022

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Original Post

Countries like the USA want to expand their fab facilities so as not to be dependent on other countries for this crticial piece of the economy.  So it is a national strategy regardless of economic consequences.

Will there be a glut in five year and prices fall dramatically, probably.

It is probably a great time to invest in those companies that make the equipment that they put into fabs like ASML.

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