The DRAM crisis is real, but it could be solved much faster if major manufacturers decided to open new factories and increase production capacity.
Japan understands how important this is. For that reason, the Japanese government is offering incentives to companies like Samsung and SK Hynix to open RAM production plants in Japan.
High Prices Are More Profitable for Manufacturers
The government proposals and incentives are very attractive, but both companies have rejected them. Why refuse an offer that would allow them to expand production capacity while reducing total operating costs by more than 50%? Because they are not interested in ending the DRAM crisis, especially if it means increasing production.
Samsung and SK Hynix are making large profits by selling DRAM chips at the high prices caused by the current crisis. Increasing production would require new investments, and it would also lower the selling price of the chips. This means they would earn less money and would also need to make sure the new factories are profitable.
Expanding production is good for consumers and for customers, but it is not good for Samsung and SK Hynix. For them, it is an unnecessary complication. That is why they are refusing the incentives, even though under different circumstances they might have accepted them without hesitation.
