>Contracting for more chips than you can make isn't a fun situation to find yourself in, nobody is doing it for profit (it's actually quite expensive in time, m

>Contracting for more chips than you can make isn't a fun situation to find yourself in, nobody is doing it for profit (it's actually quite expensive in time, money, and reputation to litigate the fallout). This is true in the ordinary course of business. But we may be in an extraordinary situation where, if the chipmakers do not overcommit, their stock price collapses today. Given the choice between blowing up now or blowing up 2 years from now, these companies may very well be choosing to blow up in the future. A lot could happen in the meantime, including bankruptcy of their customers. Which would certainly solve their overcommitment problem.