even a minor undercut would increase market presence which would be a pretty good incentive for them though. I expect you are right though that I wouldn’t expect massive sweeping changes, but I do think it will cause some conflict and competition which may lower prices across the board. The issue is… supply needs to go over demand, and there is currently a lot of demand.
Nah, it won’t matter. Even if they only operated in China it will be huge. China has a huge need of chips themselves, as we saw the the underground markets to import around US tarriffs. Suddenly they have their own supplier which will probably undercut the others in there since it was partially paid for by the CCP.
So there goes all of China, and now there is a huge overabundance of supply because they aren’t selling to them anymore. So they can either try to ratchet up the prices, knowing that CXMT proves its not worth it and the underground chip market reverses now out of China, or they start actually competing.
That’s the worst case scrnario right now, and even then that would be temporary. No matter what more comoetition is going to drive down prices. They know it, it’s why they are locking in 5 year price deals now while prices are high.
Wait until they make cheap ram!
I’d love for that to be the case but they’ve no incentive to significantly undercut the big three
even a minor undercut would increase market presence which would be a pretty good incentive for them though. I expect you are right though that I wouldn’t expect massive sweeping changes, but I do think it will cause some conflict and competition which may lower prices across the board. The issue is… supply needs to go over demand, and there is currently a lot of demand.
They will eventually.
i bet they get tariff-ed or sanctioned out of existence for daring. lol
Nah, it won’t matter. Even if they only operated in China it will be huge. China has a huge need of chips themselves, as we saw the the underground markets to import around US tarriffs. Suddenly they have their own supplier which will probably undercut the others in there since it was partially paid for by the CCP.
So there goes all of China, and now there is a huge overabundance of supply because they aren’t selling to them anymore. So they can either try to ratchet up the prices, knowing that CXMT proves its not worth it and the underground chip market reverses now out of China, or they start actually competing.
That’s the worst case scrnario right now, and even then that would be temporary. No matter what more comoetition is going to drive down prices. They know it, it’s why they are locking in 5 year price deals now while prices are high.