Taiwan-based DRAM makers have recently increased the pace of shifting their capacity to the production of DDR3 chips due to steep drops in contract quotes for DDR2 parts, according to industry sources.
Powerchip Semiconductor Corporation (PSC) and its joint venture with Elpida Memory, Rexchip Electronics, were both quoted in previous reports as indicating that their shares of DDR3 wafer starts would exceed 70% in the first quarter.
The sources said both PSC and Rexchip have significantly ramped up DDR3 output since the fourth quarter of 2009. Their DDR3 production was as low as 0-5% of overall output in the third quarter.
Nanya Technology and Inotera Memories are also ramping DDR3 output. Nanya said at its last investors conference that DDR3 would account for more than 50% of the combined production at Nanya and Inotera in the first quarter. They are expected to update the percentage at an upcoming investors conference on January 20.
According to a DRAMeXchange July report, DDR3 chips would account for 90% and 20%, respectively, of Nanya's and Inotera's overall DRAM production in the fourth quarter of 2009.
DRAMeXchange earlier this week revealed that contract prices for 2GB DDR3 modules, which had stayed flat since November 2009, edged up by 2-5% in the first half of January. In contrast, the 2GB DDR2 segment remained unchanged. The price tracker also pointed out demand for DDR3 chips is currently strong despite seasonality.