According to Dram Exchange, memory manufacturers cannot afford to invest in DDR3 capacity, and are being forced to allocate their CAPEX in the process migration of DDR2 chips. As such, DDR3 shares will reach only 28 per cent in 2009, while DDR2 shares are slated to capture at least 50 per cent of the market. In addition, DDR3 chipsets are expected to account for a mere 17 per cent average market share in 2009, with DDR2 units holding stable at 60 per cent.

"From the oversupply situation to the global recession, the schedule of DDR3 becoming mainstream item has been delayed again and again," explained the research company.

It should be noted that both Intel and AMD have been forced to put off their transition to DDR3 chipsets. DDR3 memory prices remain too high for Intel, while demand for its Core I7 CPU and X58 chipsets has failed to meet earlier, more optimistic projections.

In contrast, AMD's difficulties are technical, rather than financial. The company is apparently having problems refining the DDR3 controller for integration into AM3-based CPUs. As a result, the next-generation memory upgrade has been delayed until engineers manage to create a properly functioning BIOS.

By: DocMemory
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