Why are there only three major memory companies? Because memory is a really hard market for new entrants. Firstly, IP is heavily patented. CXMT only got around

Why are there only three major memory companies? Because memory is a really hard market for new entrants. Firstly, IP is heavily patented. CXMT only got around this by using a different manufacturing strategy they bought the patent for from another company. Secondly, scale and yield is really hard. CXMT’s production costs per unit are higher than the established companies because they’re still struggling with yield. They only made a profit last year because memory is massively overpriced. Most startups do not have the runway to spend a decade improving their yield. CXMT only survived because the Chinese government had an incentive to bankroll them long-term. Companies like Apple and NVIDIA could get into the memory game for their own needs if they wanted to, but it would take a long time and they’re only incentivized to do so if they think memory will be high forever. If it’s only high for the next 2-3 years it’s not worth it.