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Analyst firm states global chip shortage may turn into oversupply by 2023

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IDC) has stated that despite the dire chip shortages this year, the industry will return to normal “by the middle of 2022” and potentially become over-saturated in 2023 (thanks, The Register).The report states that although demand for semiconductors will continue, associated shortages should “continue easing” through the end of 2021 as “capacity additions accelerate”.Foundries dedicated entirely to production of these chips have been allocated all through 2021 and almost 100 per cent of production capacity is being utilised.

Although “front-end capacity remains tight”, IDC notes that “fabless suppliers are getting the production they need from their foundry partner”.Front-end providers are apparently starting to meet demand already, though.

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