Comment by ls612

This is the classic commodities cycle, and it happens everywhere in an economy where aggregate supply is inelastic in the short term but aggregate demand can fluctuate quickly. The reason it’s coming for DRAM first is that memory is the closest part to a pure interchangeable commodity and that recent process nodes have had almost zero improvement to memory density for years now, despite logic density continuing to increase exponentially. That and these companies have been known to fix prices in the past, but in this case the evidence suggests it’s a large aggregate demand shock.