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Holy cow, severe shortage of silicon because of exploding demand.

CrashCrash
edited 3:48AM in Other Investing
The Business Times: Singapore. 09 Jan, 2026.
https://www.businesstimes.com.sg/opinion-features/silicon-shock-when-ai-demand-broke-supply-chain?ref=global-five-stories-block

"...The supply chain cannot hold. It is breaking. Building a new fabrication plant takes three to five years. Expanding high-bandwidth memory production takes two to three years. Adding advanced packaging capacity takes 18 to 24 months. After exhausting spare capacity and drawing down inventories to crisis levels, the world has reached a point where the bottlenecks are multiplying...The factories required to solve this problem have not yet been built..."

Comments

  • yogibearbullyogibearbull
    Chips are sold out.
    Turbines are sold out.
    New construction takes time to build.
  • WABACWABAC
    There seems to be no shortage of dollars to throw at the situation.
  • AnnaAnna
    Too much money chasing money and not enough money chasing innovation and renewal.
  • Chinfist
    So this might be a stupid question, but how will this affect semiconductor stocks? Are there investments that can benefit from a silicon shortage?
  • yogibearbullyogibearbull
    Some big moves have already occurred. Notable is the absence of Magnificent 7 from the top 10 list.
    https://www.cnbc.com/2026/01/07/best-performing-stocks-of-2025-dont-include-alphabet-nvidia.html

    Top 10 performers in the Russell 1000 in 2025

    Lumentum Holdings LITE +339%
    Anglogold Ashanti AU +270%
    AST SpaceMobile ASTS +244%
    Micron Technology MU +239%
    MP Materials MP +224%
    Robinhood Markets HOOD +204%
    Western Digital WDC +189%
    Ciena CIEN +176%
    Rocket Lab RKLB +174%
    Warner Bros. Discovery WBD +173%



  • Chinfist
    yogibearbull said:

    Some big moves have already occurred. Notable is the absence of Magnificent 7 from the top 10 list.
    https://www.cnbc.com/2026/01/07/best-performing-stocks-of-2025-dont-include-alphabet-nvidia.html

    Top 10 performers in the Russell 1000 in 2025

    Lumentum Holdings LITE +339%
    Anglogold Ashanti AU +270%
    AST SpaceMobile ASTS +244%
    Micron Technology MU +239%
    MP Materials MP +224%
    Robinhood Markets HOOD +204%
    Western Digital WDC +189%
    Ciena CIEN +176%
    Rocket Lab RKLB +174%
    Warner Bros. Discovery WBD +173%



    Thanks!

  • PopTartPopTart
    edited 3:20PM
    Micron is the company that I'm most familiar with from this list. Their memory chips are in competition with Samsung and SK Hynix and all 3 companies are reporting outstanding earnings from their memory chip business due to the heightened demand and short supply, therefore leading to pricing power. Capacity won't be increased until next year at the earliest. This memory chip demand cycle could continue longer than previous memory chip demand cycles due to AI demand and Micron's valuation is low. Seems like a good setup for future returns.

    I think that there's also alot of euphoria around these names, including Micron. I've been watching it but haven't pulled the trigger as of yet.
  • Observant1
    A Barron's article this week discussed Micron.
    https://www.msn.com/en-us/money/economy/for-micron-stock-history-may-no-longer-apply/ar-AA1TS3OT
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