News Litho Machine Maker Could Be Major Chip Bottleneck Until 2024

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Titan
Moderator
This shouldn't be a surprise for anybody. Have a monopoly supplier for critical components, you get companies that have zero incentive to have more manufacturing capacity than absolutely necessary, no slack to accommodate surge demand and slow reaction time to increasing demand.
 

Eliad Buchnik

Honorable
Apr 10, 2017
17
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10,525
1
This shouldn't be a surprise for anybody. Have a monopoly supplier for critical components, you get companies that have zero incentive to have more manufacturing capacity than absolutely necessary, no slack to accommodate surge demand and slow reaction time to increasing demand.
Of course there are incentives. The more the sell the more revenue can be made. Don't worry fabs pay top $ for these machines. Since every company first goal is to increase revenue and profit it is in the best interest to increase production when the need rises. But there is so much they can do.
 

InvalidError

Titan
Moderator
Of course there are incentives. The more the sell the more revenue can be made. Don't worry fabs pay top $ for these machines. Since every company first goal is to increase revenue and profit it is in the best interest to increase production when the need rises.
There is such a thing as boom-bust cycles and if you invest too much into manufacturing capacity to meet peak demand during a boom, you may go bankrupt from having too much idle manufacturing capacity during the next bust, hence companies not increasing capacity unless longer-term projections say it is absolutely necessary.
 

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