> Because software you build it once and can resell it as much as you want, a stick of RAM is only sold once.

Yes exactly, and theoretically if there was a functioning market that should have driven prices way down, because the marginal cost to enter the market is so low. However, the non-functioning anti-trust laws as well as the expansion of ip laws as allowed a few enormous corporations to essentially control the market and keep prices up.

> Arguably software is much more difficult to build because it is never complete.

There are hardly any hardware companies where the hardware is ever complete. Disregarding the fact that many hardware products contain some form of software that needs to be updated. In pretty much any field hardware companies need to continue developing new revisions/improvements on the hardware to stay ahead of their competitors, however those revisions/improvements are significantly more complex to put into reality.

> is just a consequence of the fact that the memory market is now dominated by quasi-monopolies.

And software isn't?

"... involve a commitment to buy a certain quantity of product and pay for it in a pricing band that has a floor and a ceiling price. The floor price covers the historically high gross margins mentioned above, and the ceiling price means those who commit to an SCA are insulated if memory prices go even higher."

So clearly 16 large buyers consider it likely that prices will go even higher. How likely? >10% chance? Likely enough to sign an agreement.

"Eventually" doing a lot of work. Micron (and implicitly anyone signing this deal) are betting demand is going to outstrip capacity for several years, taking into account what new capacity can be brought online and when.

Well, apparently those companies believe memory prices will continue to rise, so they'd better lock in supply at the current (high) prices. We'll see if they're right...

More production can only come online if the producers have money to do so.

Turns out Apple fucked Micron in 2023 so they couldn't expand capacity: https://9to5mac.com/2026/06/25/micron-exec-suggests-apples-a...

nobody is agreeing to what the headline says. the SCAs are just a hedge against even higher prices. the agreements will be broken the second prices drop.

It's a five year agreement. Good luck financing, constructing, equipping, and bringing new memory fabs online in less than 5 years.

the 'cartel' almost went bankrupt the last cycle where they overbuilt capacity into lower demand, so they are legit scared of avoid this scenario at all costs.

if the chinese DRAM is any good, prices should start stabilizing... I wouldn't get my hopes up too high on them going back to the before times level anytime soon, however.

PC enthusiasts aren't exactly sentimental when in front of a spec sheet and a price list. Plus where else are you going to go. All manufacturers are hiking up their margin if you believe their stock prices.

What are they going to do about it? Start their own DRAM fab?

Those are literally the only 3 DRAM manufacturers left; all the other ones left the market over the past 15 years because the margin was too low.

Just don't buy consumer electronics for the next 3 years. You might even be able to buy a non-smart TV in the near future because of RAM prices!