It looks like we are still in a mess with chip shortages. We have major chip suppliers like Taiwan Semiconductor Manufacturing (2330.TW) and Intel (INTC.O) trying to increase their supplies. But to supply more, they need more manufacturing machines that depend on chips themselves which the companies like ASM International (ASMI.AS) and ASML (ASML.AS) provide. And now, these chip-making machine suppliers have a hard time finding chips themselves, and it's gone a full circle.
- The biggest shortage problem is with less advanced semiconductors. This is the type of chips that ASM International and ASML are fighting to compete with many other companies like carmakers.
On the other hand, the volume of orders coming in for the semiconductors indicates that the demand is still high.
The price crash in semiconductors' price cycle won't happen anytime soon. I will check the supply and demand trends next month again.