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Chip Shortage Fears Are Reaching New Heights, But Some Foresee a Glut

Semiconductor Production at Globalfoundries Europe Plant
Photographer: Liesa Johannssen-Koppitz/Bloomberg

Hello, Ian here.  U.S. President Joe Biden and other politicians have recently expressed alarm over a shortage of semiconductors. But right now, many of the smartest people in the chip world are worried about something else: a coming glut.

Wall Street is peppering chip CEOs with questions about rising lead times and double ordering. I'll explain these terms in a moment, but the overall message is clear: While there have been some shortages lately, supply could overshoot longer term.