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Nanya cut price of DDR2 to spur demand


Monday, January 24, 2005

Nanya Technology is cutting prices of its Elixir-branded 256MB DDR2 modules to US$37 per unit from about US$57 per unit in Taiwan, hoping to accelerate the transition from DDR to DDR2, according to sources at DRAM-module makers.

Nanya’s new pricing for its DDR2 modules implies that each DDR2 chip included in the module will cost only US$4.30-4.50 per chip, just 7% higher than the price of 256Mbit DDR400 chips, according to the sources. The sources expect that Nanya’s new pricing could stimulate demand for DDR2.

Although DDR2 memory, compared to DDR, features faster speeds, a higher data bandwidth, lower power consumption and enhanced thermal performance, PC consumers are still slow to adopt DDR2 memory because DDR2 prices are significantly higher than DDR.

On the PC-maker front, sources at DRAM chipmakers indicate that Intel’s launch of the Alviso chipset has stimulated PC makers’ demand for DDR2 chips. To meet the growing demand, Inotera Memory, for example, is allocating a capacity equivalent to almost 10,000 wafers per month to DDR2 production for Nanya Technology, the sources said

By: DocMemory
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