The decision to build the new Boise fab in question (to start production in 2027) was made in September 2022. ChatGPT was made available to the public in November 2022. The new fab is likely not a response to significantly increased demand at the time but an investment made in expectation of increased demand (GPT-4 could already be tested in 2020, maybe they foresaw the LLM hype). They make DRAM. Isn’t it likely that prices are going to drop once production starts at the new fab?
Isn’t it likely that prices are going to drop once production starts at the new fab?
depends on the market; one of the things I’ve seen repeatedly is new fabs opening to produce newer processes - replacing older fabs with larger nodes that then are shut down.
sometimes it’s advantageous to keep the old lines going and eek every bit of market share out of them, sometimes it’s prohibitive to keep older processes open.
but to respond to your query: in this market? in these crazy times? I’d be striking while the iron is hot and getting the maximum I could from every dram chip because the valuations of the hyperscalers and the surrounding ecosystem - open AI, anthropic, meta, google, nvidia etc., will continue to gobble it up until the bubble blows up in their faces.
The decision to build the new Boise fab in question (to start production in 2027) was made in September 2022. ChatGPT was made available to the public in November 2022. The new fab is likely not a response to significantly increased demand at the time but an investment made in expectation of increased demand (GPT-4 could already be tested in 2020, maybe they foresaw the LLM hype). They make DRAM. Isn’t it likely that prices are going to drop once production starts at the new fab?
https://investors.micron.com/news-releases/news-release-details/micron-invest-15-billion-new-idaho-fab-bringing-leading-edge
depends on the market; one of the things I’ve seen repeatedly is new fabs opening to produce newer processes - replacing older fabs with larger nodes that then are shut down.
sometimes it’s advantageous to keep the old lines going and eek every bit of market share out of them, sometimes it’s prohibitive to keep older processes open.
but to respond to your query: in this market? in these crazy times? I’d be striking while the iron is hot and getting the maximum I could from every dram chip because the valuations of the hyperscalers and the surrounding ecosystem - open AI, anthropic, meta, google, nvidia etc., will continue to gobble it up until the bubble blows up in their faces.