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It's not really a blunder though. Given that total capacity is tightly constrained, Samsung and SK Hynix are happy to focus on what they do at their best and wi
by zozbot234 9mo ago
It's not really a blunder though. Given that total capacity is tightly constrained, Samsung and SK Hynix are happy to focus on what they do at their best and with the highest margins. Why shouldn't they supply the HBM market?
- overfeed 9mo agoIt's putting all eggs in one basket. If/when the higher-margin category collapses, they'll have no fallback. Imagine Chevrolet had discontinued Impalas and other low-margin cars, and switched to Corvettes during the pandemic
- zozbot234 9mo agoEven if there's a collapse in the high-margin market (I don't think anyone is expecting this right now), it will be slow and telegraphed in advance, giving them plenty of time to refocus on lower-margin products.
- CamperBob2 9mo agoGood description of what actually happened. Do they even sell any conventional 2-door passenger cars besides the Corvette these days?
- m4rtink 9mo agoMaybe not to starve whole segments of the society and economy of critical inputs ? This is why we have strategy reserves - to avoid greedy companies to make a quick buck when they find out they can sell the equivalent of crack and dump all the other now low margin stuff like food or other essentials. Sure, that company might make a killing for a short while, but people will die from hunger, missing medicine or freeze to death.
- zozbot234 9mo agoSo let's buy a strategic reserve of DIMM sticks from CXMT. But that's not a great strategy either, because RAM tech evolves. DDR3 to DDR4 to DDR5 to DDR6. So you need to rotate your strategic reserves over time, and luckily enough for you, the used goods market is doing exactly that for free!