I can’t tell if you’re actually asking or if your question was rhetorical but I’ll go ahead and answer. This is over simplified but this is basically what is being reported:
The RAM companies know how much RAM each of their factories can make in a given hour, day, month, year, etc.
To keep math simple, let’s say the RAM company owns 1 factory. They can make 100 chips in that factory per year. In January 2026, Company A orders 50 chips, Company B orders 50 chips, Company C orders 50 chips, and Company D orders 50 chips. It’ll take 2 years to complete those orders. Maybe each company gets some chips every month for 2 years or maybe it’s first come first serve. Regardless, 2 years. The factories are at max capacity, they physically can’t make them faster.
The only way to make more chips is to build another factory which takes time. But what if you make a lot of money overcharging customers? What if you think AI might be a bubble and demand will go down? Speaking as a company, building a new factory might not be worth the investment.
I can’t tell if you’re actually asking or if your question was rhetorical but I’ll go ahead and answer. This is over simplified but this is basically what is being reported:
The RAM companies know how much RAM each of their factories can make in a given hour, day, month, year, etc.
To keep math simple, let’s say the RAM company owns 1 factory. They can make 100 chips in that factory per year. In January 2026, Company A orders 50 chips, Company B orders 50 chips, Company C orders 50 chips, and Company D orders 50 chips. It’ll take 2 years to complete those orders. Maybe each company gets some chips every month for 2 years or maybe it’s first come first serve. Regardless, 2 years. The factories are at max capacity, they physically can’t make them faster.
The only way to make more chips is to build another factory which takes time. But what if you make a lot of money overcharging customers? What if you think AI might be a bubble and demand will go down? Speaking as a company, building a new factory might not be worth the investment.