Contract prices for DDR and DDR2 went in opposite directions in the first half of September. Mainstream DDR chip prices were up within a 2.11% range, while most DDR2 chip prices were down 3.3%.

Despite the fact that September is the traditional hot season and demand should pick up on the coming long holidays, industry players explained that DDR2 chip price continue falling, as PC OEMs¡¦ have held firm during price negotiations.

DRAMeXchange noted that the magnitude of DRAM makers¡¦ capacity shift to DDR2 appears to be larger than the actual amount needed at the end market. The DDR supply, on the other hand, has remained tight since May because of capacity shifts on the makers side.

Some DRAM makers have been requested by customers to slow DDR2 capacity shift to meet demand for DDR. However, memory makers commented that they will continue migrating to DDR2 production, as DDR2 will eventually move to the mainstream. Shifting back to DDR production would not be cost-effective and they would rather continue ramping DDR2 output to lower their costs.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved