
The high price of commodity memory will inevitably affect the prices — and, eventually, shipments — of inexpensive consumer electronics (CE), as makers of entry-level products are less likely to absorb increased costs. As a result, fabless developers of chips are revising their orders to foundries in order to adjust their inventory, in accordance with what they believe the market needs, said co-chief executive of SMIC, China's top foundry. Interestingly, he also mentioned memory overbooking as a factor affecting memory prices, according to a report from the Wall Street Journal.
