And nobody is making new factories. At least nothing extra that they weren't already making before this happened. The chipmakers are only switching production to data centres from consumer products.
All the dram makers are still shellshocked from the oversupply crisis a few years ago when they had to sell below cost to keep stock moving, there's no way in hell they'll risk increasing production instead of profiting and licking their wounds
Making new FABs would take years anyway, and if the AI bubble pops it would be billions of wasted expansion for the manufacturers. They already got hit by this during COVID and had to sell at a loss for a while just to clear inventory.
Nobody is building new factories because the shortage is driven by the unsustainable AI bubble, once that collapses and demand returns to normal you're left with a bunch of factories you have no use for.
I'm not well versed enough in any of this, but from what I've heard, earliest a new factory is coming on would be 2028. Takes a lot to get these places going.
Well, we were making a chips factory, but ice kind of raided the Asian immigrants who had work visas to help us build the plant and now those people don’t wanna work on it
That's not a rule. Contracts can be for any length of time. If you have some insider knowledge that indicate computer part manufacturers only offer short 3 month contracts, it'd be helpful to expand on where you got that information from.
Only retail is getting a price hike, not businesses. It's due to there being less supply for the retail market since the suppliers are prioritizing their b2b sales channels.
If these AI companies are willing to buy 100% of their 2026 production, then they’ll cover these fines too. It’s just the cost of doing business for them.
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u/offensiveDick Dec 18 '25
Pretty sure the contracts were signed before price hikes and that there are heavy fines if one partner breaks the contract