Are you? A purchase order is a contract between two parties for one party to purchase the future production output of the other.
This is how a lot of businesses operate. None of us have seen the contracts, but do you honestly think the legal and financial people at the chip fab would agree to a contract where they’re stuck holding the bag?
But what is motivating RAM manufacturers to sign that contract? Why can the commenter above figure it out, but they can’t?
Because the contract would be an agreement for the purchasing company to pay for the products they ordered to be manufactured.
Are you being deliberately obtuse?
Are you? A purchase order is a contract between two parties for one party to purchase the future production output of the other.
This is how a lot of businesses operate. None of us have seen the contracts, but do you honestly think the legal and financial people at the chip fab would agree to a contract where they’re stuck holding the bag?