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Western memory manufacturers decided to chase the AI bubble, abandoning the consumer and low-requirement markets entirely. Chinese manufacturers are now captur
by rm30 7mo ago
Western memory manufacturers decided to chase the AI bubble, abandoning the consumer and low-requirement markets entirely.
Chinese manufacturers are now capturing that entire segment with full vertical integration. When this bubble stabilizes, because it will (it's not going to grow to infinite), Western companies won't recapture those markets.
They've already ceded competitive advantage for the next decade. This is a structural shift, not a cyclical shortage.
It's another step in the transformation of Western industry that began in the '80s: the shift from real economy and human-centric production to financialized operations.
- pyrale 7mo agoYou're speaking like Hetzner is raising prices to fund Nvidia-laden datacenters, while in fact they're mostly providing cheap servers and their growth is mostly happening because of US admin's insanity. Memory is going up for everyone, dude. And the people moving to Hetzner aren't exiting US clouds to leave for chinese ones.
- rm30 7mo agoLook at Chinese smartphone brands: Xiaomi, OnePlus took their slice from Samsung. Same pattern will play out with RAM and SSD. In 3-5 years, it won't be 'Samsung' on the label, it'll be 'Li Tech' or equivalent. Western manufacturers ceded the market through strategic choice; Chinese companies are filling it systematically.
- roelschroeven 7mo agoSamsung isn't exactly a Western manufacturer either though.