Contract prices for 1Gb DDR3 chips, which had declined 13.35% in the second half of November, plunged by another 10.66% in the first half of December 2010, according to latest data posted by DRAMeXchange. Prices for early December averaged US$1.09, the lowest level for 2010.

Average prices for 2GB DDR3 modules slid to US$20 in the first part of December, down 9.09% sequentially, DRAMeXchange data showed.

However, prices for 1Gb DDR2 remained flat from the second half of November. The chips continued to be quoted at US$1.16-1.28, keeping the price of 2GB DDR2 modules at US$22 on average, according to DRAMeXchange.

In addition, prices for other niche memory products also remained unchanged in the first half of December. Average quotes for 128Mb SDRAM and 256Mb DDR were US$0.65 and US$0.86, respectively, during the period, according to DRAMeXchange.

DRAMeXchange earlier predicted that prices for mainstream 1Gb DDR3 chips would drop by about 40% sequentially in the fourth quarter of 2010, as demand cannot keep up with chipmakers' output growth. Prices are likely to continue falling through the first half of 2011, DRAMeXchange said.