The world appetite for the latest computer-based electronic devices is waning as the global financial crisis deepens. The world's leading chipmakers are getting hit hard as many choose to save instead of spend.
From mobile phones and laptops, to cameras and MP3 players memory chips drive the functions of most tech devices. And South Korea has led the global market. Samsung Electronics and Hynix Semiconductor are the world's No.1 and 2 memory chipmakers, respectively.
But with the global economy tightening consumers are now only looking instead of buying...And with consumer demand cooling, many stores are now holding back on their orders.
This sharp decrease is sending chip prices below what they cost to make. And the manufacturers are bracing for another round of heavy losses...
Samsung and home rival Hynix Semiconductor are posting hefty losses this year. Shares in Samsung plunged almost 14 percent to their lowest close since Dec. And analysts say the situation is not going to recover in a hurry.