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> The world is out of fab capacity. Can anyone expand on this point? I read an article saying that the big AI co's datacentre spend was a bunch of lies becaus
by kristianp 5mo ago
> The world is out of fab capacity.
Can anyone expand on this point? I read an article saying that the big AI co's datacentre spend was a bunch of lies because they can't build datacentres at anywhere near the rate they want to.
- no-name-here 5mo ago> they can't build datacenters at anywhere near the rate they want to That was because the supplies the datacentre needed were constrained - supply-constrained, not end-user demand constrained, so would be in agreement with the GP comment (and the article I read didn't imply anything about lying).
- stingraycharles 5mo agoFrom what I understand it’s mostly TSMC and the memory providers being out of capacity over the next few years. So it’s not even about datacenters. Here’s a Reuters article about TSMC: https://www.reuters.com/world/asia-pacific/broadcom-flags-supply-constraints-says-tsmc-capacity-bottleneck-2026-03-24/ https://www.reuters.com/world/asia-pacific/broadcom-flags-su... So this is actual committed contracts with all kinds of companies such as Apple, NVidia, AMD. Also, the whole reason they can’t build data centers faster is precisely because of this.