Other factors pulling down the memory chip makers' stock price include reduced liquidity in the market as retail investors need cash for the coming Chinese New Year, analysts said.
Increased chip output as manufacturers have migrated to the more cost-effective 0.18 micron manufacturing process has also depressed prices, local media reported. One micron is one millionth of a meter. The smaller geometry of the process technology increases chip output from the same-sized wafer.
However, analysts see the move as positive because it reduces production costs by at least a third. It has also already been factored in by the market, they said.
Indeed, the companies' share prices already reflect all of these factors, analysts said.
"In the short term, this is the lowest level," said Jeffrey Cheng, an analyst at Yuanta Securities (
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