The great semiconductor boom and bust

TSLombard with the note:

The chip shortage is adding to inflationary pressure and turbocharging the recovery of EastAsian exporters. Although a secular demand shift is under way–embedding semiconductors into the price of a much wider array of goods and services–integrated circuit capex and prices are still highly cyclical. The boom will be followed by disinflationary price pressure,as new production comes online. Looking beyond the cycle,as the chip supply chain splits and Moore’sLaw slows, a 20-year secular deflationary trend for semiconductors and the devices that use them is likely to halt and may even reverse.

There are 1620 words left in this subscriber-only article.

Start your free 14-day trial today!

Comments are hidden for Membership Subscribers only.