2026-01-01 11:23:15

Why have memory prices remained high, and why are new participants hesitant to enter the market?

Since October last year, the answer to this question has gradually become clear.

A set of data makes it obvious. Records of price negotiations between memory chip suppliers and PC manufacturers, mobile phone manufacturers, and graphics card producers show that the main negotiation range for price increases is between 30% and 40%. Requests for price hikes over 50%? Basically none. This ceiling is very important.

The market may seem tense, but the price space is actually tightly controlled. That’s why no new players are rushing in—the profit margin ceiling determines the upper limit of investment returns. Building new production lines requires huge capital, and market realities tell you that you cannot earn enough to support such investments.

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RugpullSurvivor

· 2h ago

Basically, it's a deadlock that can't be broken, who would come in if they can't make quick money? Clever move, the giants have locked in the profit margins, newcomers see it as a trap A 30-40% growth ceiling, why bother trying to enter? So it's not a capacity issue at all, it's just that the profit margin is too tight? Got it Looks like there's a shortage, but in reality, profits are being artificially controlled, this tactic is clever It's more about being artificially controlled than being genuinely tight Burning money to build production lines just to make that little profit? Only fools would do that

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BearMarketHustler

· 2h ago

Basically, it's stuck. A 30-40% increase can't even support new production lines. Who's the fool entering the market?

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DefiEngineerJack

· 2h ago

honestly, the 30-40% price ceiling is basically the oligopoly's way of saying "we're pricing you out before you even start." classic cartel dynamics... show me the formal game theory proof that this isn't just coordinated price fixing, ser

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MevShadowranger

· 2h ago

Basically, it's a business that controls the choke point. No one is willing to pour money in if they can't make huge profits. --- The 30-40% increase ceiling is tightly locked down. New entrants shouldn't even think about it. --- This logic is actually brilliant: by keeping profits within an acceptable range, no one dares to disrupt the market. Perfect. --- Wait, isn't this just tacit price control... --- The investment in chip production lines, if there's no excess return, who would foolishly invest? --- So, there's actually no shortage of goods; it's just an experiment in price management.

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