Prices for DDR2 chips are likely to drift higher and may even top quotes for DDR3 parts in the second half of 2010 due to DRAM makers relocating production to DDR3 chips, according to Simon Chen, chairman of A-Data Technology.
On the demand side, DDR2 remains popular in the low-cost PC market, said Chen. Chen believes that DDR2 pricing is hitting bottom. If 1Gb DDR2 drops below US$2, demand will be significantly stimulated, according to Chen.
Upstream chip suppliers are scaling up their production for DDR3 chips by migrating to more advanced process geometries in 2010. However, the migration has been slowed by tight supply of immersion scanners needed for shrinking geometries, Chen said, adding delivery of the tools can take as long as 10 months.
Spot prices for both branded and effectively tested (eTT) 1Gb DDR2 averaged US$2.23 and US$2.08, respectively, during the afternoon trading session today (February 4). The 1Gb DDR3 segment was priced at US$2.87, with a premium of 30-40% over DDR2 ones.
A-Data was ranked as the world's second-largest third-party DRAM-module supplier by iSuppli for 2008 and the first half of 2009, following Kingston Technology.