DRAM’s and Semiconductor Market Bubbles: Will the next time be different? This has been one of the most controversial topics over the history of the IC industry. Originally presented at DB Access Asia in May of 2010 just as the Great Recession was coming to an end, many didn’t believe the semiconductor memory market would rise to the prominence it would over the decade. At the time, some believed that DRAM producers were smarter and had learned from the past. As this shows: if there is anything to learn from the history of DRAM bubbles, it’s that producers don’t learn from history. To a great degree it has been more a matter of governments and the financial community overfunding the expansion of competition, and thus capacity, than it has ever been one of producers learning from the past. The reason why DRAMs tend to be so brutal is that the market is highly price inelastic. In other words, expanding capacity into slowing or falling market demand hammers prices down. This report examines the dynamics of the DRAM memory IC market, price elasticity, why there was an opportunity for long term profitability even back then.