One of world’s largest chipmakers worries industry will make too many semiconductors

A file photo of employees are seen working on the final assembly of ASML’s semiconductor lithography tool with its panels removed, in Veldhoven, Netherlands. — ASML/Handout via Reuters

Chipmakers from Taiwan to the US are cranking up production to address shortages that have hammered automakers and other customers as they try to emerge from the coronavirus pandemic.

Now that unprecedented surge investment is fuelling fears the industry will overshoot, adding so much capacity in the years ahead as demand subsides that profits will take a hit.