• tal@lemmy.today
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      2 days ago

      IIRC from past reading, they ramped up capacity during a prior shortage like a decade back or something and then ate a bunch of losses when the shortage ended.

      Hmm.

      Looks like there might have been a more-recent glut than that:

      https://www.reuters.com/technology/samsung-elec-q2-profit-plunges-95-chip-glut-persists-2023-07-27/

      Samsung to extend production cuts after $7 billion chip loss in first half

      July 27, 2023 12:18 AM PDT Updated July 27, 2023

      SEOUL, July 27 (Reuters) - Samsung Electronics said the worst is over for the global memory chip market but announced plans to extend production cuts because a demand recovery is largely constrained to high-end chips used in artificial intelligence. The move underscores the unprecedented semiconductor downturn that led the South Korean firm to incur a record 8.9 trillion won ($7 billion) operating loss from its bread-and-butter chip business in the first six months of this year.

      So just over two years ago they were coming out of a money-losing period.

      • Trigger2_2000@sh.itjust.works
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        2 days ago

        Still, forcing MB & RAM purchases together is a stupid way to address this.

        Try a measured ramp up in production; not, “grab all the cash you can in the shortest amount of time possible” method.