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Or so it was explained to me by my older brother who works at Micron (who owns around 20% of the memory market). This is a repost from another thread, but oh well.
In the past year about 2 companies that produce RAM have decided to stop and a few more are quiting very soon. Why? They are losing big time money trying to compete with the likes of Micron, Samsung, NEC, etc. who have 1) Deep pockets and 2) Very efficient manufacturing processes that allow them to produce RAM at a lower cost. Since so many RAM producers are going offline, IT Analysts are expecting a short fall of RAM for the next year or so, until the big dogs can revamp their processes to increase output to meet the demand. Now since the demand is high and the supply is short, prices go up, up, up.
And that just about sums it up. And to give you a hint as to how much some companies have lost from from the recent RAM price wars...around $300 million per QUARTER for the past year or two was the figure I was given. And the big dogs broke just about even. Eeks, and we thought AMD was taking a hit for low yields on the K6 line...ouch.
Jammrock - Your source for the best rumors and insider news you can't find
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My computer can play all of my games well...except TA: Kingdoms, which I think you need a Kray to play.
In the past year about 2 companies that produce RAM have decided to stop and a few more are quiting very soon. Why? They are losing big time money trying to compete with the likes of Micron, Samsung, NEC, etc. who have 1) Deep pockets and 2) Very efficient manufacturing processes that allow them to produce RAM at a lower cost. Since so many RAM producers are going offline, IT Analysts are expecting a short fall of RAM for the next year or so, until the big dogs can revamp their processes to increase output to meet the demand. Now since the demand is high and the supply is short, prices go up, up, up.
And that just about sums it up. And to give you a hint as to how much some companies have lost from from the recent RAM price wars...around $300 million per QUARTER for the past year or two was the figure I was given. And the big dogs broke just about even. Eeks, and we thought AMD was taking a hit for low yields on the K6 line...ouch.
Jammrock - Your source for the best rumors and insider news you can't find
------------------
My computer can play all of my games well...except TA: Kingdoms, which I think you need a Kray to play.
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