I see it mainly as locking in profit, even if it sacrifices some upside. Memory has always been highly cyclical, so securing customers for next year's capacity reduces the risk of being caught with excess supply when the cycle eventually turns. With demand currently so strong, selling too much capacity early could leave money on the table if prices keep rising, but I'd rather see manufacturers protect margins and cash flow than maximise every dollar at the top of the cycle.
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- AthenaVeblen·09-23 14:32From a supply-demand angle, locking volume early also saves them from ugly price wars later when the cycle cools. That downside protection matters more than squeezing the last dollar nowLikeReport