> The only way they will is if the hyperscalers and AI companies start to implode -- which will kill a huge portion of the US economy and lead to global recession, so, cheap RAM but nobody can afford it

I disagree.

Modern RAM is made in fabs, which are ridiculously expensive to manufacture. Modern EUV lithography machines cost around 500M each. They're manufactured by hand. Only one company in the world knows how to manufacture them right now. So we can't exactly increase global manufacturing capacity overnight.

The way I see, there's 2 ways this goes:

1. AI is a fad. RAM and storage demand falls. Prices drop back to normal.

2. AI is not a fad. Over time, more and more fabs come online to meet the supply needs of the AI industry. The price comes down as manufacturing supply increases.

Or some combination of the two.

The high prices right now are because there's a demand shock. There's way more demand for RAM than anyone expected, so the RAM that is produced sells at a premium. High prices aren't because RAM costs more to manufacture than it did a couple years ago. There's just not enough to go around. In 5-10 years, manufacturing capacity will match demand and prices will drop. Just give it time.

> 1) Prices aren't returning to "normal".

> The only way they will is if the hyperscalers and AI companies start to implode -- which will kill a huge portion of the US economy and lead to global recession, so, cheap RAM but nobody can afford it

RAM isn’t some commodity that gets mined at a fixed rate and therefore costs more when people want large amounts of it. It’s a manufactured good, made from raw materials that are available in huge quantity, that was produced and sold at a profit at 2024 prices, even accounting for the capex needed to produce it.

Two things have changed. First, demand increased quickly. Second, big buyers sort of demonstrated that they’re willing to pay current prices, at least temporarily, so maybe the demand price elasticity has changed, or at least people’s perception of it has changed.

None of prevents the price from going back down. The high prices have made it economical for new manufacturers to invest more to compete — look at CXMT. And CXMT doesn’t have EUV machines, which doesn’t appear to be a showstopper for them.

Your first point highlights the huge unmitigated risk. There is no guarantee that this won't all implode, triggering a huge recession. And even if no one can afford the ram after, they especially won't be able to afford the more expensive European ram.

Really the only way it could work is if the government declares it it a national security issue and will promise to subsidize it. Because in just a free market, it's most likely to flop.

Prices are returning to normal, probably 2-3 years from now. SK Hynix is making absolutely monstrous investments in memory fabs and CMXT will be entering the market in force more and more.

The biggest problem is that the industry wants HBM, whereas consumers want DRAM. Until the need for HBM has been sufficiently satisfied, fabs will prefer being tooled for HBM because businesses can be squeezed much harder than consumers.

Then again, as consumer you don't really need DDR5 or even DDR4 so long as you aren't using an iGPU. Its all about being around CL15 timings.

> The only way they will is if the hyperscalers and AI companies start to implode -- which will kill a huge portion of the US economy and lead to global recession, so, cheap RAM but nobody can afford it

This isn't right.

RAM prices (and most components) are very finely balanced between supply and demand. A small shortfall in supply leads to a large increase in price, and a large shortfall in supply leads to very large price increases.

It takes 2 years for an existing RAM supplier to build a new clean room factory to make RAM.

All the RAM manufactures saw this shortage coming 6 months ago.

If you follow the news, the existing manufactures are investing heavily. Here's Hynix annoucements:

Nov 25: Hynix plans 8-fold boost to cutting-edge DRAM production in 2026, https://overclock3d.net/news/memory/sk-hynix-plans-8-fold-bo...

Dec 25: Hynix investing $500B (I guess this is a mistranslation somewhere!!???) in new RAM factories, https://www.pcgamer.com/hardware/memory/hot-on-the-heels-of-...

Jan 26: Hynix to spend $13 billion on the world's largest HBM memory assembly plant, https://www.tomshardware.com/pc-components/dram/sk-hynix-to-...

The supply is being built to match the demand. Prices will stabilize, and the manufactures know there is lots of latent demand.

In 2 years time RAM prices for consumers will be normal again (not sure about GPU RAM though!)

I don't think anything other then a major implosion of the AI companies is possible. It is just not physically possible to go any other way due to he ridiculous amount of funny money they have invested to this dead-end & the non-existent revenue these companies are getting back for it.

> The only way they will is if the hyperscalers and AI companies start to implode

you're missing the picture that it's not companIES - the crisis primarily was caused by only one company OpenAI buying out wafers

but even more than that - that wafer buyout is *an excuse* used by cartel - there are several mechanisms that could have eased out most of the problem (e.g. Samsung selling old equipment) that was not done to ride the money wave

(also said "hyperscalers and AI companies" existed in spring 2025 too, yet the price was low)

the winners will not be the ones who build new fabs - but ones who'll have enough money and government subsidies/import taxes to protect such investments after cartel decides to oversupply again, flushing the price down

FWIW I agree with you. The US should provide stable, consistent policy & funding so companies understand the regulatory environment and do long-term planning.

Which is a good idea for when we don't have a dementia patient in charge of our country.

EU should get on that though.

> The only way they will is if the hyperscalers and AI companies start to implode -- which will kill a huge portion of the US economy and lead to global recession, so, cheap RAM but nobody can afford it

You can't reshore domestic manufacturing without creating legions of desperate workers with no other choice but to accept minimum wage factory jobs.

You think AI can't implode..wat

It's being delayed by ai companies from running on local consumer grade machines specifically by making the cost of entry too expensive. OpenAi buys 40% of wafers to ensure the price of memory stays high.

> On device AI is much better for the customer than it being in the cloud

Which is exactly how you know it will always be nerfed. The last thing these guys want is to take their claws out of our data.

> AI demand isn't going away.

I'm not sure about that. When was the last time you have used Copilot prompt in Run dialog or Notepad?

RAM isn't a critical security category like 5G base stations.

Also, I don't think you've seen true consumer rage until the opposition in the EU would start pointing out the current parties are making the smartphones, laptops, TVs and whatnot consumers wanna buy much more expensive (or more crappy). Large parts of the EU are currently being crushed by one of the worst housing crises in the world, the economy seems to be wavering for young people especially, and tech / gadgets being cheap was one of the sole rays of light left.

RAM is pretty different to Huawei 5G base stations.

Australia for example is a large and growing market for Chinese electric cars. China is the biggest export market for Australian raw materials so it doesn't just put random trade barriers up.

There's actually a free trade agreement between Australia and China.

So, EU and US tend to actually implement such bans, but the rest of those countries in a list like that..

People appreciated cheap YMTC 232-layers when that happened where I live.

Then those countries that didn't will have an advantage at selling their electronics to the world.

Or their consumers will enjoy cheap PC part prices. With possible gray zone re-export market.

Of course we could see retreat from global markets to mercantilism, but that has yet to fully happen.

That's a good point.

    > but this is only if you do not take into account the bribes from Intel to specific officials and their relatives who make decisions about subsidizing Intel.

Brandolini's Law is out of control here. You are making a bold fucking claim. From the tone of your post, it seems pointless to ask if you have any evidence. From and outsider's view, I would say the German political system is much less corrupted by lobbyists compared to the United States. Do you say the same about the CHIPS Act in the United States?

This is going on for decades and I wonder what the actual business model for the EU economy is in the future. With all factories soon gone, will Europe rely on agriculture, tourism and some services only? Back to a "developing country" economy?

Even the most excellent education system takes several yeas to educate a high-schooler to a level of a junior engineer. Then several more years are needed for the best of them to become senior engineers, with the knowledge and experience that a university alone cannot provide.

So, we're looking at a decade-long project at least, even if everything goes as planned, and crazy fast, in the technical and administrative departments.

> Doesn’t the EU have an excellent education system?

Excellent universities, overall. But results from primary and secondary schools are nose diving at a more than alarming rate in several EU countries. Literacy rates are falling, math grades are falling. There's IMO only so much time before universities begin to be affected as well.

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> Doesn’t the EU have an excellent education system?

Well, the EU has not manufactured a whole lot of chips in the last 30 years, where do you get the people with the professional experience to teach new engineers... Oh you mean you have to import the teachers from South Asia too? /s and it takes what, 5 years at the minimum to train an engineer? France and UK used to produce entire home computers... in the 80's...