- Suppliers that memory companies depend on JIT are entangled and go under, halting production or stalling capacity increases
- Downstream suppliers / distributors for not vertically integrated memory companies go under, and there is a shortage of finished product ready for consumer use even though there is an excess of memory chips
- Memory producers / fabs can’t handle the depressed demand and go under / have to halt production, alleviating the demand glut for the surviving suppliers, who have less competition. Coordinating a cartel becomes easier when there are fewer suppliers and becomes more desirable now that everyone realizes it’s a matter of survival.
There are also plenty of good reasons to think prices will go down if demand is depressed, but it does seem possible for prices to go up