The semiconductor industry is notoriously slow when it comes to reacting to sudden increases in demand. It is facing a capacity issue but at the same time it is a unique opportunity for investment.
Some analysts believe that demand for chips now exceeds supply by about 30%, and it will take 3-4 quarters for the supply to catch up with the demand. Essentially, this means that chip shortages will persist well into 2022. (CN Beta, Tom’s Hardware, Market Watch)
Hyundai Motor has reportedly so far avoided a chip shortage that has plagued global automakers, largely maintaining its stockpile of chips last year and even accelerating purchases towards the end. The shortage has forced production cuts worldwide, including at Volkswagen and General Motors, prompting Germany and the United States to ramp up efforts to resolve the shortage. (Laoyaoba, Reuters, The Guardian)
According to IC Insights, as of Dec 2020, only TSMC — the world’s largest foundry — was listed among the wafer capacity leaders in each of the 3 wafer size categories. It had the most 200mm wafer capacity last year and ranked second, trailing only Samsung, in 300mm wafer capacity. (Laoyaoba, IC Insights)
