Discussion in 'Article Discussion' started by bit-tech, 12 Sep 2018.
Maybe attempting to carpet bomb the market with 39 trillion variants of each CPU wasn't such a brilliant idea after all...
There's been lots of talk of Intel having more demand than capacity, but this seems to have been morphed into an undersupply issue without much evidence to support it. Intel can be shipping less CPUs than OEMs want while still shipping the same number or more CPUs as the previous quarter. The distinction is important, as unless DRAM production has increased (I don;t think any of the new fabs are online yet) then it will not cause a reduction in demand for DRAM.
tl;dr Not enough CPUs to go around != fewer CPUs shipped
In hindsight, it has a certain irony to it doesn't it...
Maybe someone was eating pizzas in the clean room?
It's a struggle to keep up with what's happening with RAM as a few days ago DigiTimes *apparently reported that Samsung and SK Hynix were going to slow down their fabrication capacity expansion plans for NAND and DRAM in wake of lower than expected demand projection for the first half of 2019.
*IDK for sure as for some reason i keep getting secure connection failed when following the link provided by TechPowerUp.
As I see it (Disclaimer I have never study economics or manufacturing so I might be way off):
Computer assembly company X built N units last year and want to build M unit this year, where M is greater than N. So X goes to the parts manufactures and orders the parts for M units. The parts manufactures ramps up production in order to meet the order. Intel, says yes at first, then it says they cannot supply M they can only supply N (or L which is less then N). X reduces all orders to match Intel's limit. The other manufactures are left with a surplus of M-N (or M-L). Hence reduction in RAM pricing.
In your scenario edzieba, the impact would likely be minor as manufactures can expect to match last years sales. No growth but minimal revenue losses. Alternatively and more severely, if production is reduce then there is negative growth and potential for large revenue losses.
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