[wtallis]

> There are many computer components competing for the same resources (fabs, wafers).

That's a bit off the mark. Processors, RAM, and flash memory each require their own specialized fabs. TSMC makes processors but not DRAM or NAND flash. Kioxia makes flash only. Samsung has all three types of fabs. Micron does DRAM and NAND, in different fabs.

The increase in SSD prices is not because there are many components competing for the same constrained resources, it's that they are complementary goods being subject to the same dynamics in parallel because the servers that are causing this demand spike need all of those components. Where we do see competition for the same fab capacity is in the mix of DRAM types, where GPUs want HBM, server CPUs want DDR5, laptops and phones (and the occasional server CPU) want LPDDR. And competition among different types of processors for TSMC's fab capacity.

[lgg]

I mostly agree, but if you go further back in the supply chain there are a number of common inputs/tools. For example, as 2025 the new LPDDR lines are using EUV systems, which means for new fab production both DRAM and logic producers are competing for machines from ASML.

It doesn't change your point that these lines are different and the immediate price spike is not about them competing for capacity in the same facilities, but the fact that manufacturers are committing to large enough future purchases to drive new fab construction means that future pricing outlook (which does impact the current prices to extent) does involve some amount of competition between different types of semiconductor products.

[spacebacon]

Shared skilled labor is another thing to consider.

[wtallis]

That's only going to change on similar timescales to the fab capacity, which is to say multiple years.

[hikarudo]

Thanks for the correction. You're absolutely right.