alt Hacker NewsWith memory manufacturers running gross margins in excess of 80% how long until we see upstarts come online to eat away at that or is that unlikely to happen in the near future?
I can't imagine a margin that large is allowed to exist unchallenged for more than a few years.
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The only challenger is Chinese fabs, but they could just as easily end up banned from western markets.
Immense profits have proven a very endurable shield against upstarts for "big tech" so... we'll probably end up watching regulators attempt to dismantle the RAM cartel throughout the 2040s.
Even the upstarts are cashing in. I believe CXMT is making some serious cash now.
Apple makes their own CPUs what is stopping them from making RAM?
As has been said here every time this question comes up, years away if ever. It takes years to bring a new fab online as well as a huge amount of capital investment. Once the AI bubble pops, you now have a glut of RAM chips with prices crashing. If that new fab has been paid off while the getting was good, it's now an albatross on the books. Not something investors are eager to get into
The memory manufacturing industry is historically notorious for its "feast or famine" cycles, bouncing violently between periods of extreme supply gluts and crushing shortages. We're in a shortage with massive demand right now, but manufacturers are hesitant to significantly invest in new manufacturing capacity due to the risk of being left holding the bag if demand drops.