Micron Technology Inc., the largest U.S. manufacturer of memory chips, has issued a disappointing outlook for the second quarter, falling short of market expectations. The company cited a persistent decline in demand for smartphones and personal computers, which has contributed to a 7% drop in shares of Soitec, a related semiconductor firm. Following Micron's weak guidance, European chip stocks also experienced declines, reflecting broader pricing pressures in the sector. The market for dynamic random-access memory (DRAM) chips, which constitutes the majority of Micron's revenue, remains sluggish due to weak consumer demand and an ongoing supply glut. As a result, Micron's shares plummeted by 16%, marking the largest drop in over four years, and raising concerns about a bearish trend in the semiconductor index.