Most of the 8inch wafer supply (mostly >90nm) was no where near capacity before the pandemic and supply restrictions. China did buy up a lot of it (actually moving equipment) and perhaps those were closed down?

Much of the legacy 12inch supply was fairly constrained even before the pandemic (especially specialty 55 and 40nm) due to shifts in display driver needs for OLED. The relatively new 10 & 7nm were pretty well dedicated to known customers.

Much of Automotive is in the larger 180nm to 90nm range with some 28nm for SOC due to cost, reliability, and legacy test qualifications. Except for entertainment only Tesla really uses much smaller than 22nm. It's interesting that they seem to have been willing to use commodity processors much more, and that seems to have made their supply chain more resilient (at the prices they were willing to pay).

It's interesting because a lot of mixed-signal analog really doesn't shrink well 28nm, and requires a lot of redesign to be cheaper than 180nm. There are ways to get down to 14nm and below, but the design costs require huge economies of scale to pay off.

The last couple of years in Semi really has been a game of how much are you willing to pay for the old backlog of parts that were hard to sell earlier. Only now are some new designs really making it out a year later. It's supply chain, but it's also price gouging and just taking profits while you can (why build more when margins will only plummet?). I do worry about the risks of concentration of this production in China.