Semiconductor prices likely to continue downtrend for another year

Semiconductors account for roughly a fifth of South Korea's total exports and have driven the country's economic growth over recent years.
But dark clouds are appearing on the horizon with the prices of DRAM and NAND flash chips, used to store data in our phones, computers and TVs, are forecast to keep tumbling.
Choi Si-young reports.
Industry insiders on Thursday said DRAM prices are likely to fall in the coming months.
The global semiconductor industry began to suffer from sluggish growth from the end of last year, and according to a report by market research firm 'DRAMeXchange', oversupply, shrinking demand and the gloomy economic outlook are factors behind this price fall.

The report said if the current lack of demand continues, DRAM prices will see a downward trend through 2019.
It also projected a fall in NAND flash prices,... due to shrinking demand.

The average price of 8-gigabyte DRAMs -- the most widely used units -- last month was 7 U.S. dollars, down 10-percent from its peak in September.
The average price of 128-gigabyte NAND flash chips -- the most widely used NAND flash -- also fell last month.

The report said global chipmakers... Samsung Electronics, SK hynix and Micron Technology, which make up the majority of the global volume, have started re-adjusting their chip production and reducing investment in semiconductor facilities.

However, some industry insiders say prices could even rise toward the end of the year,... citing a growing demand for chips, driven by 5G or the fifth generation of mobile communications, as well as self-driving cars.

Choi Si-young, Arirang News.