DDR2 prices to match DDR1 by mid year - sources

Chicago (IL) - Semiconductor manufacturer have begun shifting DDR memory output from DDR1 to DDR2. As Tom’s Hardware Guide has learned, DDR2 is going mainstream right now and is likely to match DDR1 prices by the end of the second quarter of this year.

The slower than expected transition process from DDR1 to DDR2 memory is finally in an accelerating process that will allow consumers to purchase the newer generation memory at price levels of DDR1, according to sources at a top-five semiconductor company.

Most manufacturers are producing DDR2 at a 30 percent share of total output with 50 percent to be reached by June 2005. According to pricewatch.com, pricing for DDR2 currently is about 275 percent higher than their DDR1 counterparts.

DDR2 is likely to scale from 400 to 800 MHz in the mainstream, with the latter frequency to be introduced in the fourth quarter of this year. While the DDR2-800 version will serve as bridge to the next generation DDR3-800, there will be a limited and higher-priced supply of DDR2-1066 memories early next year, the sources said.

Manufacturers also indicated that there will be a greater time difference between the introduction of DDR2 and DDR3 than it was the case between DDR1 and DDR2. "We are more realistic about this," the sources said. As a result, DDR3 is targeted at this time for the second half of 2006.

Samsung already said in January that DDR2 production would surpass DDR1 in the third quarter of this year, which also indicates prices to decrease for DDR2 significantly in the coming weeks.

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