Shenzhen's Huaqiangbei traders hit by chip price crash after AI frenzy
Traders in Shenzhen's Huaqiangbei electronics market are facing steep losses as memory-chip prices plunge after a speculative frenzy driven by AI demand. Prices for DDR4 memory kits have dropped about 40% since late 2025, with a 16-gigabit kit now selling for roughly 600 yuan ($83), down from over 1,000 yuan at the peak. Despite the decline, prices remain six times higher than original levels. A trader surnamed Liu noted that the surge attracted speculators from diverse backgrounds, many of whom are now trapped. The market is widely regarded as the world's largest spot market for electronic components.
Key facts
- DDR4 memory chip prices have plunged about 40% since late 2025
- A 16-gigabit DDR4 kit now sells for roughly 600 yuan ($83)
- Prices peaked at over 1,000 yuan in late 2025
- Prices remain six times higher than original level of just above 100 yuan
- Traders and distributors at Huaqiangbei reported the price decline
- A trader surnamed Liu said speculators from shoemakers to fishmongers piled into memory-chip speculation
- Huaqiangbei is considered the world's largest spot market for electronic components
- Global memory-chip makers are reaping record profits from AI demand
Entities
Institutions
- Huaqiang Electronic World
Locations
- Shenzhen
- China
- Huaqiangbei