Thread

1. ocd · 1790861971 · focus · HN ↗

   I'm not a business guy, but I think I would be very worried if I created any opening (even on the very long term) for competition to justify itself being built up to meet demand (or national security requirements of other countries) on an industry I mostly control, because I prioritized extremely high prices for a few years that might have the effect of changing the arithmetic for potential competitors that wouldn't have done it before.

   It makes me consider whether there would be retaliation in later years against the US intellectual property system in countries other than China. While RAM is a tangible product, the areas it serves aren't really.

   1. radford-neal · 1790870747 · focus · HN ↗

      If I understand this comment correctly, it's saying that Micron and the others would be better off selling RAM at below the price they could get, in order to keep competitors from deciding to enter the market.

      Such collusion might well be a violation of anti-trust law, but in any case, it wouldn't work. If they decide to sell at below-market price, they must (by definition) be preventing some customers from buying by some non-price mechanism (eg, only selling to companies run by other members of the CEO's family). Potential competitors would then see an opportunity to sell to these excluded customers.

      1. thayne · 1790872066 · focus · HN ↗

         Not exactly, I think it's saying that Micron would be better off increasing supply themselves (and thus lowering prices) than waiting for a competitor to come and provide more supply to meet the higher demand.

         If there was enough existing competition, that might be the right move, because if they don't increase capacity, a competitor probably would in order to gain more market share. But I think the barrier of entry for making RAM is high enough that Micron can probably get away with keeping supply low (and thus prices high) for at least a few years before a new competitor appears. Assuming demand stays high that long.

         1. GeekyBear · 1790908736 · focus · HN ↗

            > I think it's saying that Micron would be better off increasing supply themselves (and thus lowering prices) than waiting for a competitor to come and provide more supply to meet the higher demand.

            It's a bit too late. Chinese manufacturers have finally started making DDR5 and have raised enough cash in an IPO to start ramping up production in a major way.

            > Shares of chipmaker Changxin Technology Group soared nearly 466% Monday in their debut on Shanghai’s tech-heavy STAR Market, making CXMT the most valuable China-listed company.

            The Hefei-based firm had raised 57.92 billion yuan ($8.6 billion) after pricing its IPO at 8.66 yuan per share, making it Asia’s biggest so far this year.

            <a href="https:&#x2F;&#x2F;www.cnbc.com&#x2F;2026&#x2F;07&#x2F;27&#x2F;cxmt-china-market-debut-chipmaker-ipo.html" rel="nofollow">https:&#x2F;&#x2F;www.cnbc.com&#x2F;2026&#x2F;07&#x2F;27&#x2F;cxmt-china-market-debut-chip...

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