[blueblisters]

It’s not just about supporting new processes. Many tool/machine vendors are backlogged by years because they simply don’t have the capacity to make more than a few of those machines every year. Even if someone wanted to invest in new manufacturing, they would likely have to wait a few years to start production.

Secondly, some legacy manufacturers of semiconductor parts lost money on their capacity-building investments during the dot-com burst. The semiconductor industry is brutal and there is a genuine fear that overcapacity will make it hard to deal with any bust that happens after this boom.

[joe_the_user]

Correct me if I'm wrong, it seems like in the modern economy you have a situation where for many companies, most spending decisions are made long term, on the principle of what promises profits long term, regardless of immediate factor and with the perspective not overcompensating.

This has all sorts of bizarre consequences. In the middle of the PPE shortage - hospitals prevented their employees from buying PPEs themselves but would still only buy PPEs at the lowest price with a long term contract. And you had the Texas company that loudly proclaimed they couldn't sell their PPEs but they also only sold by long term contract. And this was all with people dying.

It's easy to see how manufacturer isn't going to be adding capacity for a puny short-term shortage.