The incentive is that your 2 competitors will build more than you and gain market share on you if you are too conservative.
replySamsung, SK Hynix, and Micron all have to balance between capex spending, making as much profit as possible, and risk of bankruptcy.
So are the new competitors currently in progress of starting up? Because it takes at least several years.
replyOnly Chinese companies have a chance. Problem is that China can’t buy EUV machines and the most advanced memory chips now use EUV.
replyHeck, the US is now pressuring ASML to not sell even DUV machines to China, period.
When costs are high enough, you can recoup that, if you have an appetite for risking the downturn.
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