The shortage of DRAM could stem from price fixing practices.
The shortage of DRAM could stem from price fixing practices.
Good morning everyone, tin foil hat time with a historical twist! With DRAM prices more than doubling lately, it seems collusion is becoming a likely concern. This pattern has happened before with the same companies, and it could be a serious issue for the next few months. There doesn’t appear to be an end in sight. Here are some links for reference:
- https://www.techpowerup.com/234565/no-re...ly-in-2018
- https://web.archive.org/web/200511120513...212002.htm (2002 price fixing)
- https://www.computerworld.com/article/25...wsuit.html (2012 price fixing)
I’d appreciate your thoughts on this topic.
They're intentionally doing this, at least in part. The rise of SSDs and overall silicon demand plays a significant role in the situation.
The situation isn't a direct price fixing, yet the three big makers are gaining from the scarcity and limited rivals, which hasn't spurred them to boost output quickly. Samsung is planning to restart a few DRAM fabrication plants after shifting from NAND flash production. However, substantial growth won't happen until late next year.
Building more manufacturing takes effort, and setting up factories isn't inexpensive. As @Sakkura mentioned, Samsung plans to increase production next year.
I'm not sure if any agreements are happening, but raising prices doesn't always mean price fixing. Businesses can set their own prices, and charging too much might let competitors steal sales. The concern is whether suppliers are coordinating to limit market influence. Anyone know if changes in demand or supply are driving up costs?
It appears the situation is driven by conventional market factors like supply and demand, reduced competition, and profit-seeking behavior. Investigating why these issues persist and intensify over time can be intriguing. The problem has been ongoing for more than a year and seems to worsen with each passing day. It may seem suspicious, though it isn't necessarily so.
They've handled it before. I recall receiving a settlement from a class action case involving the RAM I purchased back in 2002.