The semiconductor shortage is spreading and will materially impact industrial production for 2021. Autos are the most obviously impacted, and other sectors will need to be analysed on an individual basis. Companies and governments are making unprecedented investments into chip manufacturing capacity. However, key end-use markets are reaching saturation. This risks leading to over-capacity causing a semiconductor bubble to form and then pop on the back of less geopolitical stockpiling and collapsing demand, this is one to watch out for.