4 ms·
Indeed. This is especially important because if, say, TSMC or Nvidia increase their MSRP's, then they go go re-invest that into additional capacity to solve the
by runnerup 5y ago
Indeed. This is especially important because if, say, TSMC or Nvidia increase their MSRP's, then they go go re-invest that into additional capacity to solve the supply shortage. Instead, middlemen take the markup profits and have no ability to put that towards additional production.
I do wonder if it's a bit of an backdoor anti-inflation deal thing:
- TSMC/Nvidia boards don't want to raise prices because it might cause rank-and-file consumers to feel like inflation is higher, and there's perhaps fear it could lead to a cycle of increasing across-the-board inflation on wide basket of goods.
- USA/etc offers TSMC/etc subsidies for building additional capacity to make up for the revenue/reinvestment shortfall on keeping artificially low MSRP's.
And then this is a ham-handed attempt to exert some limit on any scalping operation getting "too large" and potentially drive consumer prices down a bit more until the additional capacity (funded by govt. subsidies instead of MSRP) finally comes online.
Is that hypothesis/"mad ramblings" completely unreasonable? It might be. I just really feel that the producers should increase prices and reinvest in capacity, rather than allow middlemen to skim the arbitrage.
- nradov 5y agoChip manufacturers can't increase capacity any faster due to supply chain constraints. Raising prices wouldn't allow them to expand any faster. And most of their prices are locked in by long term production contracts anyway.