[xadhominemx]

CXMT sells the vast majority of their bits at the prevailing market rate, just like everyone else. They are adding capacity as quickly as they can, with a 5-10 year planning horizon, just like everyone else. It’s really not that deep!

[orphea]

  > They are adding capacity as quickly as they can [...], just like everyone else

Are you sure? In the past they explicitly said they are not going to increase production.

https://www.tomshardware.com/pc-components/dram/memory-maker...

[xadhominemx]

Yes of course their messaging to customers and the investment community is that they will be rational and measured in their investments. In reality, they are adding capacity as quickly as possible as margins are too high. However, capacity addition leading edge semiconductor manufacturing has a multi-year lead time.

[overfeed]

> In reality, they are adding capacity as quickly as possible [...]

Even if we ignore the fact that you can't build out factories in secret, this would be securities fraud by publicly listed companies.

> ...as margins are too high

This is not the first RAM boom-bust cycle, and memory makers are an actual cartel convicted of coordinating in the past - none if them are going to break rank when they can invest the minimum and reap outsized benefits. Also, no one wants to invest in additional capacity when the bottom can fall out at anytime, and shareholders demand your head- not even the AI companies want to bear that risk, which is saying something.

[washadjeffmad]

PRC asked them to curtail DDR4 production so they didn't bottom out the market a year or two ago, and to focus on latest gen development, like HBM. They were the world leader in cost efficient DDR4 production at the time.