Comment by overfeed
3 hours ago
> Most commodity shortages like this end in a glut
The 3 RAM manufactures know this too, from painful experience. There won't be a glut this cycle because there are no capacity build-outs. Instead of increasing capacity, some OEMs left the consumer segment to focus on enterprise AI.
> Calling this kind of demand economic damage is odd.
It's not odd at all because the complementary industries are being damaged - possibly permanently: manufacturers of motherboard, cases, fans, and the entire consumer PC supply chain are being negatively impacted. Expect bankruptcies and consolidation if this lasts for 2 more years.
Good that there is a _fourth_ one. That's actively ramping up and looking to increase market share. CXMT.
The big 3 are the only ones capable of bringing forth a glut, IMO. Of the Chinese challengers, CXMT is the frontrunner, there's also JHICC and others, but I don't think any of them will have sizable volumes in the next 2 years, despite extremely favorable market conditions. This is not a dig against them; they (and their domestic vendors) will need time and experience to get the yields up, and will undoubtedly eventually dominate the consumer market in about 5 years, according to my outsider crystal ball.
CXMT is a tiny supplier, it will take years before they significantly expand the market. They're pretty much in the same boat as Samsung and SK Hynix, they just have less of an incentive to actively curtail supply.