This feels like a short coming of western business/stock market thinking. Focusing on profit within the next few quarters, and not caring about the longer term consequences. For all it's flaws and shady business practises at least China can think beyond a single fiscal year.
This isn't a shortcoming, it's a competitive market working as intended.
> They are adding capacity as quickly as they can [...], just like everyone else
https://www.tomshardware.com/pc-components/dram/memory-maker...
It is wise for these Chinese fabs to eventually use a very aggressive dumping strategy to price well below cost push out other players forever, especially in DRAM.
But right now it seems they can max out their supply capacity without selling below cost.
Appears to me like China's endless state led (often unproductive) investment in semiconductor manufacturing subsidies (for decades) is about to pay off with some industry dominance soon.
Like the electric vehicle sector.
It's all simply a fight for market share.
The original sin is the existing DRAM vendors selling their entire (spare) capacity to the likes of OpenAI.
Once established, the Chinese vendors will retain most the market share if the quality is ok. The SK/JP vendors are making a big mistake.
tonetegeatinst•1h ago