The price of memory chips used in nearly every electronic device has skyrocketed during the pandemic. But judging by how much memory chip prices have fallen now, the demand boom may be over . Average contract prices for DRAM fell 10.6% in the April-June quarter from a year earlier, the first year-over-year decline in two years, according to TrendForce. The price drop is expected to be more dramatic in the coming months. Memory chips make up about 28 percent of the $595 billion semiconductor industry that includes microprocessors and image sensor chips, according to Gartner. Three of the top four companies by annual revenue in the semiconductor industry last year were memory makers: Samsung Electronics and Hynix, as well as Micron Technology. The weakening of pricing power in the memory chip industry reflects slowing sales of smartphones, personal computers (PCs) and other electronics as consumers increasingly feel the pain of inflation. Facing the slowdown in demand, chip buyers cut production, reducing semiconductor demand and replenishing supply levels.
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