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The economic tide is turning for the chip industry

Shenzhen site of chip manufacturer SMIC: The build-up of high-tech capacities coincides with the downturn.

The semiconductor sector experienced several heavy economic fluctuations since its beginnings. After demand exceeded capacity over many months, the situation may now turn around again. First trade media report that the chip shortage is over. What sounds like the much-longed-for relief for industry and consumers, however, is far too sudden for manufacturers. Because the boom is now followed by recession.

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