Which was caused by the exact problem they’re trying to avoid by not going on a spending spree to increase manufacturing capacity.
They had built way too much capacity during the 90s and were losing money on every chip because they couldn’t run the fabs at full capacity. That’s why they colluded to increase the price to save their collective hides.
A new competitor wouldn’t be able to enter the market and lower the prices without also losing money. That’s not the case today, the Chinese are trying hard to do just that.
alt Hacker News
Which was caused by the exact problem they’re trying to avoid by not going on a spending spree to increase manufacturing capacity.
They had built way too much capacity during the 90s and were losing money on every chip because they couldn’t run the fabs at full capacity. That’s why they colluded to increase the price to save their collective hides.
A new competitor wouldn’t be able to enter the market and lower the prices without also losing money. That’s not the case today, the Chinese are trying hard to do just that.