Samsung Electronics has discontinued its policy of bundling DDR2 and NAND flash sales together, as DDR2 pricing has recently rebounded, and DDR2 prices will continue to rise, with Samsung and Hynix Semiconductor pushing their DDR2 contract price levels above that for DDR for the second half of January, according to industry sources.

DRAM makers reportedly started bundling sales of NAND flash with DDR2 from September 2005 in order to ease their DDR2 inventory levels amid lusterless sales. Thanks to a recent pickup in demand, Samsung has stopped its bundling scheme, and fellow memory makers should follow the memory giant’s lead, the sources noted.

Research firm InSpectrum explained that the special bundling offers have successfully dragged DDR2 inventory levels down to a normal range. In addition, PC OEMs are ramping their DDR2 deployment pace, with some channel players in China also starting to adopt DDR2 in the clone market ahead of schedule.

Increased demand and falling supply have led to a rebound in the DDR2 market, and Samsung and Hynix will continue increasing their prices in the second half of January, the sources stated, while adding that the 6% price premium DDR had enjoined over DDR2 will be eliminated.

Recent trends in the spot market also foretell of a price hike for DDR2. Sources noted that Samsung has raised its 512Mbit DDR2 533 spot price to US$5. Rival Hynix, has also followed suit and raised its DDR2 quotes for the spot market.

According to InSpectrum, average contract prices for 512Mbit DDR2 533 should hit US$4.08 in the second half of January, up 2.51% from the first half of this month, while pricing for 256Mbit DDR 400 should drop 2.4% to US$2.

Taiwan memory module makers estimate the proportion of DDR2 module shipments should rise by a minimum of five percentage points to reach 15-20% in January.