Prices of dynamic random access memory (DRAM) chips are on a decline due to sluggish demand from PC makers, data showed Tuesday, spooking the chip industry that has been anticipating a price recovery in the second half.

The average contract price for DDR3 2Gb 256Mx8 1333/1600 MHz chips stood at US$1.02 for the first half of August, slipping 5.56 percent from the price in the second half of last month, according to the data by DRAMeXchange owned by TrendForce Corp.

The chip, which is most frequently used for PCs, was priced at $4.34 when it was launched in September 2010. After dropping to $0.88 late last year, the price recovered to $1.17 in the April-May period.

Other DRAM chips suffered price drops. DDR3 4GB SO-DIMM 1333/1600 MHz chip prices fell 5.1 percent to $18.75 over the cited period.

The recent fall comes as a worry to the chip industry, which had spotted hope in strengthening DRAM prices following Japanese chipmaker Elpida Memory Inc.'s bankruptcy in February.

The incident partly resolved oversupply in the market, raising hope for the chip industry that has been mired in a year-long slump.

The price of DRAMs is expected to rise 7.7 percent and 3.5 percent in the third and fourth quarters following a 1.5 percent gain in the April-June period, market researcher IHS iSuppli earlier forecast. (Yonhap)