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Again, how do you define a shortage? Chip production is way above the 2019 levels. Moreover the utilisation of the fabs, new and old processes combined is much
by vladimirralev 5y ago
Again, how do you define a shortage? Chip production is way above the 2019 levels. Moreover the utilisation of the fabs, new and old processes combined is much higher[1]. Semiconductor fab worker count is at all time high, 10% above 2019. Why isn't this excess demand (caused by too much free money) as opposed to a "shortage"?
[1] https://www.semiconductors.org/chipmakers-are-ramping-up-production-to-address-semiconductor-shortage-heres-why-that-takes-time/ https://www.semiconductors.org/chipmakers-are-ramping-up-pro...
- mohanmcgeek 5y agoCar sales are down double digit percentage across the world and used call prices are up 30% > Why isn't this excess demand (caused by too much free money) as opposed to a "shortage"? It might very well be excess demand. The idea is that supply should always be elastic and grow to meet the demand. In this case it didn't. But this "excess demand" can't be attributable to lower interest rates because people, I imagine, aren't borrowing to buy these goods.