Sharp Tech with Ben Thompson (Preview) The Roots of a Global Memory Shortage, Thick, Thin and Apple, Shopify is Fine, Actually
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Feb 20, 2026 They dig into why a global memory chip shortage happened and who it will hurt next. They explain why memory fabs look like logic fabs and why price cycles crush margins. They use an international shipping analogy to show marginal-cost dynamics. They also touch on a thin future for AI, which computing stays on device, Apple’s strategy, and how Shopify might fare as AI reshapes digital brands.
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Memory Fab Parity With Logic
- Memory fabs are as advanced and expensive as logic fabs, often costing $20+ billion and using EUV tools.
- Memory is largely a commodity, so price is set by the marginal supplier rather than design differentiation.
Design Drives Logic Margins
- Logic chips gain value from design differentiation like instruction sets and integration, which memory lacks.
- That lack of differentiation made memory a commodity market vulnerable to lower-cost competitors in the 1980s.
Intel's Memory Retreat Story
- Ben recounts Intel's exit from memory in the early 1980s after losing to Japanese suppliers and refocusing on logic.
- Andy Grove's decision to abandon memory illustrates how companies choose higher-margin, design-driven businesses.