Semiconductor market 2018

An interesting article recently published in E&T, the IET magazine, presented the case for a shift in the drivers of semiconductor pricing, away from demand and towards product shortages being the main reason for prices being driven upwards. Until the mid-00's, the industry became very familiar with a feast-or-famine cycle working on a frequency of 3-5 years, driven entirely by demand for particular ICs being high, then met, and then crashing due to over-supply. Since then, the market has become more stable in terms of demand, with growth in market value being driven largely by product shortages driving prices up. Sadly this doesn't seem to necessarily mean increased revenue for the wafer manufacturers. It's an interesting article - well worth a read.