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You're looking at it purely from the short term perspective of say GPUs, cars etc. as a consumer. Sure, a short term oversupply to drive prices back down to a sane level (or even below sane for a little while) would be a good and healthy thing. That's coming.

However, what the article is talking about is the risk of a longer term oversupply situation at the foundry level. If that happens the result will likely be even more consolidation. The downside to you as a consumer would be lack of innovation and flat to higher prices over time.[1] Once you get below a handful of players in a market, the worse your options as a consumer get.

[1] see Intel CPUs for much of the 201X's



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