Seagate Sparks Memory Sell-Off As CEO Says It Would 'Take Too Long' To Build New Factories
Source: Slashdot
Seagate CEO Comments on Memory Factory Build‑Out
Seagate CEO Dave Mosley said Monday that building new memory‑chip factories or adding capacity would “take too long” to keep up with AI‑driven storage demand.
“If we took the teams off and started building new factories or bringing up new machines, that would just take too long. You would end up with more capacity, but then you’d slow the rate of growth on that technology,” Mosley said.
At the conference, Mosley also addressed the “very long lead times” and the importance of predictability for customers:
“We know what’s coming out a year from now… If you want to plan this really well, which it should be for your data centers, we know what’s coming out. You can buy this stuff up to a certain period. We want to keep that four‑ or five‑quarter visibility very, very solid for what’s being built. But the demand is significantly higher than that.”
Industry Context
- Memory‑chip stocks have surged in recent months as AI investment drives demand, with the chips playing a key role in AI build‑outs in data centers.
- Chip production cycles span many quarters for a single unit, prompting investors to scrutinize how quickly leading memory makers can meet demand.
- CME Group is launching a new futures market for semiconductors, allowing traders to lock in prices and hedge against rising computing‑power costs.