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I hear you man, but guess what, I'm not a supplier, so again: qui bono. You're argument assumes we have anything close to a healthy economy now. And in another
by RONROC 5y ago
I hear you man, but guess what, I'm not a supplier, so again: qui bono.
You're argument assumes we have anything close to a healthy economy now. And in another world, you'd be right. However, that not being the case, your argument is moot at best and disingenuous at worst.
- hef19898 5y agoThe bullwhip effect, the wikipedia page on it is pretty good, has nothing to do with the economy per se. I don't think we have seen it at display as big, as long and as global in my life time. My professional opinion is that a lot can simply attributed to disrupted supply chains and an overall bullwhip effect.
- blihp 5y agoYou're looking at it purely from the short term perspective of say GPUs, cars etc. as a consumer. Sure, a short term oversupply to drive prices back down to a sane level (or even below sane for a little while) would be a good and healthy thing. That's coming. However, what the article is talking about is the risk of a longer term oversupply situation at the foundry level. If that happens the result will likely be even more consolidation. The downside to you as a consumer would be lack of innovation and flat to higher prices over time.[1] Once you get below a handful of players in a market, the worse your options as a consumer get. [1] see Intel CPUs for much of the 201X's
- colinmhayes 5y agoOver supply lead to consolidation. The weak get acquired. There are currently only 4 legit foundries, a legitimate crisis could turn that into 2 or 3. The less competition there is the more market failures there will be.