One cannot simply "flood the market" or the Chinese would have done it ages ago.
The fabs themselves (especially for memory) are being retooled for process moves. At least that's what micron has been doing.
But otherwise I agree. Micron has a new fab being built that was started around 2020. It's nowhere near finished.
Even so, the production of cheaper Chinese DDR5 memory is increasing despite not being able to import all the tools and materials that are needed, so eventually they will benefit from this memory shortage that allows them to gain market share that they would not have gained otherwise.
It's a gambler's ruin problem. Future profits are worth zero if you go out of business first.
Applications can be lazy and grow to the amount of resources using, but the real need for maximum ram is using it for these new purposes.