It's my assessment from a bit of reading that the global chip shortage is more for "lower tech" integrated circuits and systems on chips associated with the automotive sector. Post COVID, people are out buying cars that they deferred a purchase on, coupled with the increased number of chips used in cars to run functions from braking to the ADAS (Advanced Driver Assistance Systems). Plus EVs coming into the market use even more chips again. All those chip manufacturers rely on selling to the car manufacturers at a steady rate of demand and they carefully invest to match the projected demand and not a chip more. (Excess capacity is wasted investment)
DRAM is also affected to a degree but that shortage looks to be shorter lived and is manufactured by companies who are vertically integrated - ie. they aren't relying on Bosch or Renesas to make their components for them. They own the process from tongue to tail.
I'm not convinced the chip shortage is a consideration for 4DS. Whoever picks them up will probably build a fab specifically for the task
4DS Price at posting:
13.0¢ Sentiment: None Disclosure: Held
