Recently, the price of memory chips has risen rapidly due to Japan’s export restrictions on South Korea. However, the latest report from market research and analysis firm Gartner points out that memory chip prices will fall further this year.

According to Gartner analysts, oversupply in the DRAM market may cause product prices to plummet 42.1% at some point in 2019, and this price cut is expected to continue for quite some time. At the same time, Gartner expects global semiconductor revenues to fall from 475 billion US dollars (2018 data) to 429 billion US dollars, a decrease of 9.6%.

Gartner believes that the reason is the trade war, the weak pricing environment for memory and other chip types, and the decline in sales growth of smartphones, servers and PCs.

According to analysts in the semiconductor industry, although the recent memory prices began to rebound, this is not because the demand began to recover, but the result of market uneasiness caused by Japanese export restrictions. DRAM manufacturers may have to wait until the second quarter of 2020, when the inventory is consumed, the price will really rise due to changes in supply and demand. However, since recent chip prices have caused significant price fluctuations in the PC industry, no one seems willing to listen to such news.