DDR3 prices will drop a little

DDR3 contract quotes have declined 2% on average for the latter half of July while the price for DDR2 parts has remained steady, according to DRAMeXchange.

Contract prices for 1Gb DDR3 have slid by up to 2.4% to US$2.44-63 in the second half of July, driving the price of 2GB DDR3 modules to US$42-45. Meanwhile, prices for same-density DDR2 ones held flat from the first half.

Korea-based chip vendors managed keep their late July prices stable, but some other DRAM makers agreed to cut their prices to US$42 because of slower-than-expected demand, DRAMeXchange indicated.

Industry watchers expect PC replacement demand from the enterprise sector to emerge by the end of 2010, but have also expressed concerns that capacity ramp-ups by major DRAM producers using more advanced processes may again cause a supply glut around the same period.

The watchers pointed out that demand from Europe and the US is still sluggish. China is also having slow sales due to a government probe of DRAM smuggling, the watchers added.

Spot prices for mainstream 1Gb chips all went down during the morning session today, according to latest quotes posted by DRAMeXchange. Average prices for branded and effectively tested (eTT) 1Gb DDR3 were US$2.44 and US$2.28, respectively, as of 11am Taiwan time (UTC+8) July 29. Meanwhile, prices for branded and eTT 1Gb DDR2 averaged US$2.04 and US$2.11, respectively - via digitimes