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Very smart comment, and that's the question: is the present spike in semiconductor demand a temporary situation, or a new reality? If this demand environment i

Very smart comment, and that's the question: is the present spike in semiconductor demand a temporary situation, or a new reality? If this demand environment is a new reality, then prices will go up and it will take several years of CapEx to get them back down. If it's just a spike, then the pure-play foundries may still invest in those legacy production lines, but there will be less of a long-term presence. I am personally of the opinion that this is a permanent market shift; WFH is here to stay, so there has been real and lasting demand creation for cars. Plus, the transition to EV is undeniable, and will perhaps see an inflection point in this self-reflective moment where automakers have to shut down production lines and reassess their plans anyway.

baybal2 6y ago
> is the present spike in semiconductor demand a temporary situation, or a new reality? I have access to quite pricey market research from Digitimes, SEMI and such. Biggest contributors to growth are things very, very remote from both cars, and trendy gadgets. You just keep getting more ICs put into just about everything, and at the same time very simple devices get bigger global penetration. For example, a giant growth centre been rooftop solar equipment for developing countries — completely missed, and invisible in the West. Electric mopeds, scooters, and lsevs — again, things mostly invisible, and unknown in the West. LED lighting — growth immeasurable, and hard to count Home appliances Power ICs, and motor drivers Security devices: locks, locators, CCTV, alarms — 100x+ growth over a decade Vending machines, signage — 60x growth over a decade