[brookst]

Wafer production is almost entirely fixed cost. Running a factory at 30% utilization costs about 80% of running at full capacity (source: former Intel).

And let’s not forget Elpida.

Here’s a good article on the economics of the industry and why huge swings in margins make capital investment risky: https://www.mckinsey.com/~/media/McKinsey/Industries/Semicon...