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Chip fabrication output is shared between AI infrastructure and consumer electronics, and AI is currently claiming a larger allocation from the available pool.
Prices for phones, laptops, and gaming consoles are already up as a result, and retailers are projecting further increases with no indication the pressure eases soon. The constraint is shared supply under sustained load.
Memory chip fabs run at output limits set by the capital equipment installed inside them.
Expanding that capacity, from the initial investment decision through facility construction and production yield qualification, is a multi-year undertaking.
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