I wouldn't expect any company to continue running their factories at peak capacity when there is weak demand. The outcome of doing so is, of course, destroying your own profit. And while that sounds great in theory for consumers (cheaper prices!), in a capital intensive industry, this is a great way to go out of business.

Another example from another industry: agriculture subsidies cause farmers to do exactly this, producing massive amounts of crops despite a low price for them; a wasteful outcome by most societal standards, and the low profit margin for farming means none but the most efficient, massive operations can survive.

It was reported yesterday that intel is also, quote "undershipping massively".

https://seekingalpha.com/article/4573788-intel-q4-earnings-b...

If you dislike this behavior, start a chip company and undercut the market!