Wafer production is almost entirely fixed cost. Running a factory at 30% utilization costs about 80% of running at full capacity (source: former Intel). And le

Wafer production is almost entirely fixed cost. Running a factory at 30% utilization costs about 80% of running at full capacity (source: former Intel). And let’s not forget Elpida. Here’s a good article on the economics of the industry and why huge swings in margins make capital investment risky: https://www.mckinsey.com/~/media/McKinsey/Industries/Semiconductors/Our%20Insights/Memory%20Are%20challenges%20ahead/Memory%20are%20challenges%20ahead%20final.pdf https://www.mckinsey.com/~/media/McKinsey/Industries/Semicon...