Contract quotes for 2GB DDR2 modules have remained unchanged at US$41 for the second half of January, and the price of 2GB DDR3 parts also remained flat at US$41.
Contract prices for DDR2 chips may encounter downward pricing pressure later this quarter, according to market sources, who have questioned whether Taiwan's major DRAM producers are able to remain profitable in the first quarter.
Nanya Technology is also conservative about the DDR2 market. The company was quoted in previous reports saying a downward price correction for DDR2 may hurt its ASPs in the first quarter.
Both Nanya and Powerchip Semiconductor Corporation (PSC) swung to net profits in the fourth quarter of 2009, their first in 11 quarters. Meanwhile, Inotera Memories has also reported its first quarterly profit in two years, whereas Rexchip Electronics has posted its second straight quarterly profit.
Nanya and Inotera, which are converting to Micron Technology's 50nm, said they expect to commence pilot runs for DDR3 chips built on 40nm-class process around mid-2010 at the earliest. DDR3 will account for more than 50% of Nanya and Inotera's production by the end of first-quarter of 2010.
PSC and Rexchip are set to increase their DDR3 wafer starts share to 70% or more in the first quarter, according to the companies. Both currently produce DRAM chips using Elpida Memory's 65nm XS extra-shrink process technology, and their pilot runs for 45nm chips remain on schedule.
Spot prices for DDR2 chips have stopped falling, having seen a more than 20% decline since the beginning of 2010. Average prices for 1Gb DDR2 stay between US$2.20-2.30, whereas the 1Gb DDR3 segment is priced above US$3.