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Players benefit from falling memory prices, but suffer from integrated circuit market
People familiar with DIY industry should have some idea of the skyrocketing hardware prices in mid-2017. At that time, several large memory chip manufacturers caused price of memory particles to rise due to production capacity.
As a result, in just a few months, price of memory has skyrocketed, and conventional 8GB DDR4 memory has reached a high price of nearly 1,000 yuan, leading gamers to say they "can't afford it."
As production capacity of DRAM particles increased last year, memory prices finally began to fall. Although rate of decline is not so high, downward trend has never stopped.
Recently, some quality 8GB DDR4 vests also fell below 300 RMB mark, greatly reducing cost of self-installation.
Recently, latest report from research and development institution IC Insights indicated that with price drop in memory market this year, overall IC (electronic components) market is also expected to be affected, and there may be a 9% increase.
IC Insights analysis showed that the market cycle of DRAM particles and NAND flash memory particles is closely related to fluctuations in capital costs and production capacity: over past two years, although price of memory has been high, it has had a positive impact on market IS in general.
While lower memory prices and a downturn in market are good for consumers this time around, the IC market in 2019 could be extremely adverse.