That's such a nonsensical argument, it holds for every other business too and in this case it's just a lame excuse for monopolization. If you are that chicken and can't stomach competition you should not be in business anyway.
The current RAM manufactures were convicted of conspiracy to manipulate prices back in the 2000s or thereabout, doing so is their modus operandi, but this time the government is participating in the racket.
Chip manufacturing has unusually long spin-up times, high capital costs and relatively thin margins for anything but the latest and greatest processes, compared to most industries.
There are other boom/bust businesses that have had waves of bankruptcies. The commodity sector is of particular note. You're seeing the same reluctance to spin up new oil rigs in the shale industry for similar reasons, despite record high energy prices.
The current RAM manufactures were convicted of conspiracy to manipulate prices back in the 2000s or thereabout, doing so is their modus operandi, but this time the government is participating in the racket.