> Big name manufacturers are refusing to invest in fab expansion because they believe (correctly) that total demand for semiconductors has barely moved.
This is false.
First, big name manufacturers are indeed building more fabs.
Second, there appears to have been demand creation in the semiconductor market rather than just a transitory demand spike.
Perhaps only cutting edge makes sense to build new, and once there is increase of cutting edge capacity, older fabs will gain spare capacity to be used for automotive and other industrial users.
This is false.
First, big name manufacturers are indeed building more fabs.
Second, there appears to have been demand creation in the semiconductor market rather than just a transitory demand spike.