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Global chip shortage may soon turn into an oversupply crisis

Only companies investing in advanced semiconductors will see their margins increase

| Taiwan
The production line of silicon wafer at a factory in Jiaxing, China, pictured in May 2021: manufacturing capacity for less advanced semiconductors will grow rapidly.   © AP

Alicia Garcia-Herrero is Asia-Pacific chief economist at Natixis and a senior research fellow at Bruegel, a Brussels-based think tank.

From supply chain bottlenecks to rising inflation, an important question for all stakeholders is whether we are going to see an end to the chip shortage crisis.

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