Didn’t memory manufacturers specifically say they’re not going to be raising production as they’d rather have everyone pay the premiums while the shortage lasts?
When the Chinese DRAM industry really kicks off, we’ll have competition again. But right now they’re not producing high enough volumes and the Chinese RAM sticks on Aliexpress (yes, the ones with actually Chinese DRAM chips) aren’t much cheaper than non-Chinese RAM.
In a world where inputs to the process of chip creation can scale you would be correct.
However it takes at least a decade to bring a power plant online restrict power generation. Access to natural gas and oil can be distrupted further restricting access to power. There is a finite supply of water in most areas that can not be expanded . Disruption to trade routes due to war and tariffs make expanding the inputs to production difficult. Reduces access to capital due to a lack of faith in the US government and rising interest rates will restrict that access.
The world of plenty we lived in was dying even before Covid killed it off. We live in a world of scarcity and disrupted supply and resources now.
Yes and no. Production capacity takes a long time to build up in manufacturing. Plus these are specialized parts so the build up will take longer. Don’t expect a significant production capacity increase in the US for 5-10 years.
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Increased demand translates to increased memory and ram production capacity?
Didn’t memory manufacturers specifically say they’re not going to be raising production as they’d rather have everyone pay the premiums while the shortage lasts?
When the Chinese DRAM industry really kicks off, we’ll have competition again. But right now they’re not producing high enough volumes and the Chinese RAM sticks on Aliexpress (yes, the ones with actually Chinese DRAM chips) aren’t much cheaper than non-Chinese RAM.
In a world where inputs to the process of chip creation can scale you would be correct.
However it takes at least a decade to bring a power plant online restrict power generation. Access to natural gas and oil can be distrupted further restricting access to power. There is a finite supply of water in most areas that can not be expanded . Disruption to trade routes due to war and tariffs make expanding the inputs to production difficult. Reduces access to capital due to a lack of faith in the US government and rising interest rates will restrict that access.
The world of plenty we lived in was dying even before Covid killed it off. We live in a world of scarcity and disrupted supply and resources now.
Yes and no. Production capacity takes a long time to build up in manufacturing. Plus these are specialized parts so the build up will take longer. Don’t expect a significant production capacity increase in the US for 5-10 years.