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Silicon wafer maker cautious despite strong chip demand

Chief of Japan's Sumco fears getting burned by investing in capacity

Sumco's silicon ingots and wafer chips

TOKYO -- The global supply of silicon wafers is lagging as data centers and car electrification drive demand for more semiconductors, in which the wafers are a necessary component.

There is speculation that the semiconductor industry has entered a "supercycle," a period longer than its usual three- to five-year market cycle. If so, wafer supplies could be squeezed further.

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