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Memory maker warns shortages will get worse in 2027, as CEO celebrates ‘much higher prices’
(www.videogameschronicle.com)
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this post was submitted on 02 Oct 2026
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Capitalism can't function when the competition has to spend 5 years building a multi billion dollar chip fab.
This is exactly how capitalism functions, it's happening under capitalism.
I'm talking about the "controls" that people claim make capitalism work.
Buddy, five years is nothing...
And the crunch started in 2019, more than five years ago.
The real problem is coming tho:
https://en.wikipedia.org/wiki/ASML
They are the only ones who can build the machine that goes into the building youre worried about.
That is the shit that right now js impossible to compete against, and the Dutch have it because of instead of constantly playing catch up, they leapfrogged. If that Dutch company doesn't sell you their machine, the building your talking about is pointless
The only way to beat them, is someone else takes the short term hit to leapfrog them.
That iswhat capitalism needs to function, a constant cycle of leapfrogs that leaves corporations in the dust so new ones have space to grow. When we prop up outdated corps, it doesn't work
And right now China is trying to catch up with that technology. They might be lagging today, but they are a huge market, and they will eventually catch up, maybe not completely but enough to be competitive.
Plus their LLMs need a lot less hardware resources for inferences.
Don't forget that all US frontier models are operating at a huge loss, because if they need to charge market rates their market will shrink significantly.
So this GPU crunch is forcing Chinese labs to innovate and find clever ways to achieve higher intelligence with constrained resources.
And cloud and computing cost will only go up now, due to exploding hardware prices, which will make the whole business model of the US frontier models even more unprofitable.
More like 25 years building a multi-trillion dollar fab just to get close to the same production rate and quality.