kwbarnes wrote:
The problem isn't tariffs. Chip prices are outrageous because of the rise in demand, due to the current rush to build massive data centers.
No one is building additional chip manufacturing plants, while everyone is building massive data centers. How many millions of chips does it take to get just one of those new data centers operational?
As long as there is a fixed supply of chips, and a sustained spike in demand, prices will also spike until the demand lowers or the supply increases to meet the new demand.
This principle holds true no matter the product, housing, desirable vehicles, food, etc. Just think back a year or two, when bird flu decimated the chicken/egg industry. Remember how much you were paying for a dozen eggs not too long ago (if you could find them)? Shortly after the egg ranches were able to replace their hens, egg production rose back close to its pre-bird flu numbers and the price of eggs dropped down close to the pre-bird flu price.
Supply and Demand. That's Capitalism, baby.
Right you are Ken! I have 15 Data Centers on my to do list as we speak, most of them are in Texas for the moment. Guess I shouldn't complain about the cost of memory...................
My images were, thankfully, a bit more tame than the ones that took over the web last week. Much as I enjoy nudging the envelope occasionally, I did not want my name anywhere near any of that. My good friend, and the man whose name is on the field where I captured these shots has spent his life establishing an impeccable reputation for professionalism and perfection in every avenue of his businesses. When he called me I was only too happy to tell him that we performed our responsibilities in the manner and spirit that he would have expected..
