Memory chip sales slowing down

Reduced consumer equipment spending has negative affect on DRAM chips

There has been lower than anticipated demand for memory chips in PCs, mobile phones, consumer electronics and in-car computers

Demand for memory chips that power PCs, mobile phones, consumer electronics and in-car computers has slumped, according to the semiconductor industry’s largest trade association.

World Semiconductor Trade Statistics (WSTS) has revised its revenue forecast downward as a result, primarily due to weak sales of chips to equipment manufacturers in the fourth quarter of 2007, combined with lower unit prices.

WSTS has 70 members representing 80 per cent of the world semiconductor market. The group said combined global sales revenue is expected to grow 4.7 per cent to $268bn (£134bn) in 2008, down 4.4 per cent on its original 9.1 per cent prediction made in November last year.