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> But why would they invest in more factories if they also think it's a temporary hickup? Because they have orderbooks 2 years (at least) into the future so kn
by nl 4mo ago
> But why would they invest in more factories if they also think it's a temporary hickup?
Because they have orderbooks 2 years (at least) into the future so know what demand is there - and they are demanding deposits for future orders.
It's easy to see if this is true. Look for news on new factories opening:
Micron: https://finance.yahoo.com/technology/ai/articles/micron-mu-picks-bechtel-historic-060718744.html https://finance.yahoo.com/technology/ai/articles/micron-mu-p...
Samsung: https://www.kedglobal.com/korean-chipmakers/newsView/ked202606210002 https://www.kedglobal.com/korean-chipmakers/newsView/ked2026... (note this is doubling Samsung's memory production)
SK Hynix: https://finance.yahoo.com/sectors/technology/articles/sk-hynix-invest-13-billion-044604948.html https://finance.yahoo.com/sectors/technology/articles/sk-hyn...
- OtomotO 4mo agoYes, 2 years. How long does building a factory take? If the demand grows with their production they can sell more units at the same price. If demand goes down by a certain percentage, they sell more for less + they lost the investment into new factories. It all is based on IFs and about personality, about "optimism" vs "pessimism" I for one think that the AI bubble will "burst" at some point and I think that then there will be a lot of hardware to go by. Time will be the judge of my abilities to replace the Oracle of Delphi.