Semiconductor industry and market
Which is commonly said to characterize the memory market?
- APrices hardly fluctuate
- BPrices tend to fluctuate greatly with the balance of supply and demand
- CThere is almost no demand
Show answer and explanation
Answer: B. Prices tend to fluctuate greatly with the balance of supply and demand
DRAM and NAND flash are standardized products that are hard to differentiate between makers, so prices fluctuate greatly with the balance of supply and demand. Capacity investment during booms tends to cause oversupply during downturns, and memory makers' earnings tend to swing widely.