Part 6/11:
The industry has historically struggled with rapid demand spikes, often facing shortages and long lead times—sometimes between 9 to 12 months—for capacity expansion. As a result, shortages have emerged across various segments, from automotive to memory chips. This supply deficit is likely to persist throughout the year, potentially leading to price increases.
Investment in Capacity Expansion
Leading manufacturers are aggressively investing in capacity expansion. For example, Taiwanese semiconductor giant TSMC has increased its capital expenditure by 50%, a record high, reflecting confidence in future demand. Chinese domestic players are also ramping up their investments to achieve greater self-sufficiency amid geopolitical tensions, especially between the US and China.