When it comes to the global semiconductor industry, it’s either feast or famine, and neither is too preferable for the tech industry.
Nikkei Asia reports fears that a ramping up in semiconductor production in order to counter the global chip shortage will result in a huge oversupply problem.
Industry organisation SEMI sounded the warning back in June, after it estimated that construction on roughly 30 new chip factories will start by the end of next year. The majority of these will be in Asia, with South Korea, Taiwan, Japan, and Malaysia all home to multiple planned foundries.
SEMI predicted that global semiconductor equipment investment will reach a record US$100 billion next year after topping US$90 billion in 2021.
This marks a “rare three consecutive years of growth that began in 2020, bucking the historical cyclical trend of a one- or two-year expansion followed by a year or two of tepid growth or decline”, SEMI said.
