| If the producers see a long term demand for memory they will meet the challenge and produce enough to bring prices down. Economics will invariably alleviate the memory crunch. It just takes long and requires a huge upfront CapEx. They have been burned in the past and are hesitant to over invest, worried that the bubble might burst. I expect high prices to stick around for a while, but I would be surprised if this was permanent. Which means to me, that price pressure probably won't be the driving force for writing more memory efficient software. For those who want, I expect AI to make it easier to do that, assuming it's done right, i.e. not vibe coding it. If you have a subscription to The Economist, I recommend listening to this Money Talks podcast. They talk about the shortage and the economics behind it. Can anything stop South Korea’s bull run? https://www.economist.com/podcasts/2026/05/21/can-anything-s... |
“ The China card
Two Chinese chip makers—CXMT, the country’s top DRAM producer, and Yangtze Memory Technologies, which focuses on NAND storage—are growing fast and want to expand their global clientele. China is the closest thing to a quick fix for the chip shortage, but the solution is at best partial.
Yangtze Memory is building three new factories in China that would more than double its current capacity by the end of 2027, people familiar with the plans said. Meanwhile CXMT is seeking to raise $4 billion in an initial public offering in Shanghai, and it is building new factories. It said its revenue rose by more than 700% year-over-year in the first quarter of 2026, though it acknowledged that its products still trail those of the three industry leaders.”
Gift link: https://www.wsj.com/tech/why-the-memory-crunch-is-almost-imp...