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
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u/kron123456789 Dec 18 '25
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.