The global memory chip market has experienced a precipitous decline in prices, with both DRAM and NAND flash suffering double-digit percentage drops this month. The ongoing downturn in the IT market, coupled with oversupply and intensified price competition among manufacturers, is expected to prolong the recovery period well into December.

According to a recent report from DRAMeXchange, the average contract price for a generic PC DRAM (DDR4 8Gb 1Gx8) plummeted 20.59% month-over-month to $1.35 in November. After a period of upward momentum starting in October of the previous year, DRAM prices entered a consolidation phase between May and July before reversing course in August. The decline accelerated in September with a 17.07% drop, followed by a month of stability in October.

Similarly, the average contract price for a generic NAND flash for memory cards and USB drives (128Gb 16Gx8 MLC) fell by a substantial 29.80% month-over-month to $2.16 in November. NAND prices, which had enjoyed a five-month upward trend starting in October of the previous year, experienced a consolidation phase before turning downward in September.

Despite the price reductions, the downward trend in memory chip prices is expected to persist due to the continued focus of PC manufacturers on inventory management and the intensifying price competition.

TrendForce, a market research firm, attributed the sharp decline in memory prices in November to a price war initiated by Taiwanese suppliers in an effort to gain market share and secure more orders. The firm also forecasted that PC manufacturers aim to reduce their inventory levels from 10-16 weeks at the beginning of the fourth quarter to 8-14 weeks by the end of the year.

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