CXMT has been offering DDR4 chips at about half the prevailing market rate
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Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#2More competition is always good
Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#3This feels like a classic business blunder. Focus hard on a single business segment, leaving an opening in the market for your competitors. Not because it wasn't profitable, but because it wasn't profitable enough for you, right now. Only downside is that now you've created an opening for a new player in the market.
This feels like a short coming of western business/stock market thinking. Focusing on profit within the next few quarters, and not caring about the longer term consequences. For all it's flaws and shady business practises at least China can think beyond a single fiscal year.
Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#4As a outside observer, NAND and DRAM prices have skyrocket ed with the AI infrastructure boom just as the China-based fabs are coming online.
It is wise for these Chinese fabs to eventually use a very aggressive dumping strategy to price well below cost push out other players forever, especially in DRAM.
But right now it seems they can max out their supply capacity without selling below cost.
Appears to me like China's endless state led (often unproductive) investment in semiconductor manufacturing subsidies (for decades) is about to pay off with some industry dominance soon.
Like the electric vehicle sector.
Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#5This feels like a classic business blunder. Focus hard on a single business segment, leaving an opening in the market for your competitors. Not because it wasn't profitable, but because it wasn't profitable enough for you, right now. Only downside is that now you've created an opening for a new player in the market. This feels like a short coming of western business/stock market thinking. Focusing on profit within th…
Ok but this is how the market is supposed to work. If the incumbents aren't doing what their customers want, then competitors can rise and fill the gap and compete.
This isn't a shortcoming, it's a competitive market working as intended.
Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#6Awesome. Hopefully storage is next.
Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#7This feels like a classic business blunder. Focus hard on a single business segment, leaving an opening in the market for your competitors. Not because it wasn't profitable, but because it wasn't profitable enough for you, right now. Only downside is that now you've created an opening for a new player in the market. This feels like a short coming of western business/stock market thinking. Focusing on profit within th…
Ok but this is how the market is supposed to work. If the incumbents aren't doing what their customers want, then competitors can rise and fill the gap and compete. This isn't a shortcoming, it's a competitive market working as intended.
The market doing what it's supposed to do does not negate that the market segment has only been left open because of overly myopic businesses.
Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#8This is good news. The price you pay for jacking up your prices is losing market share.
Once established, the Chinese vendors will retain most the market share if the quality is ok. The SK/JP vendors are making a big mistake.
Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#9As a outside observer, NAND and DRAM prices have skyrocket ed with the AI infrastructure boom just as the China-based fabs are coming online. It is wise for these Chinese fabs to eventually use a very aggressive dumping strategy to price well below cost push out other players forever, especially in DRAM. But right now it seems they can max out their supply capacity without selling below cost. Appears to me like China…
It's funny that you call this an "very aggressive dumping strategy" while AI vendors are doing the same but with even greater losses and on a much larger scale.
It's all simply a fight for market share.
The original sin is the existing DRAM vendors selling their entire (spare) capacity to the likes of OpenAI.
Re: CXMT has been offering DDR4 chips at about half the prevailing market rate
#10As a outside observer, NAND and DRAM prices have skyrocket ed with the AI infrastructure boom just as the China-based fabs are coming online. It is wise for these Chinese fabs to eventually use a very aggressive dumping strategy to price well below cost push out other players forever, especially in DRAM. But right now it seems they can max out their supply capacity without selling below cost. Appears to me like China…
It's funny that you call this an "very aggressive dumping strategy" while AI vendors are doing the same but with even greater losses and on a much larger scale. It's all simply a fight for market share. The original sin is the existing DRAM vendors selling their entire (spare) capacity to the likes of OpenAI.
No one sold their capacity to OpenAI. The vast majority of DRAM is transacted in what is essentially a quarterly auction.