Looks like the market is pretty worried today about Samsung/Sk Hynix's $13 billion capital expenditure plan over the next decade. From a personal perspective, the market seems concerned about two points: - Capital expenditure eating into cash flow - Concerns that such a massive investment in capacity could lead to oversupply, driving down memory prices and impacting profit margins. Back in May, I mentioned this in a tweet about whether the US and China could reach a deal on lithography machine exchanges. Previously, memory manufacturers were very cautious about capacity expansion in 2024 and 2025. It wasn’t until late 2025 or early 2026, when they saw AI demand and long-term agreements from downstream customers, that they started expanding. Based on the new production lines announced by Samsung, SK Hynix, and Micron, and considering construction timelines, capacity won’t start coming online until the second half of 2027, with real volume likely not arriving until 2028. So, for the newly announced capital expenditure plans and new capacity, we’re looking at an even later timeline. As I also mentioned in the May tweet, factoring in the capacity increases from Changxin and YMTC: 'At least until the first half of next year, memory (especially high-end HBM, GDDR7/GDDR6x, DDR5, and mid-range DDR4, high-end NAND) capacity will still be tight, while demand is still skyrocketing right now.'