Memory Chip Makers Shift Focus to Higher Priced DDR3 Parts
While perhaps not as resilient as the 3.5-inch floppy disk, DDR2 is doing its damnedest to avoid obsolescence. The only trouble with that is that memory chip makers aren't showing much interest in prolonging DDR2's relevance in the market place, not when faced with steep drops in contract quotes for DDR2 chips.
Just about every DRAM maker has shifted their capacity to the production of DDR3 chips, and in some cases (like with Powerchip Semiconductor Corporation), production is so lopsided that shares of DDR3 wafers have climbed above 70 percent. That's a big change from the third quarter of 2009, when PSC's DDR3 production sat somewhere between 0-5 percent of overall output.
But PSC isn't the only one. Both Nanya and Inotera Memories have also ramped up DDR3 output. And according to DRAMeXchange, Nanya is likely to see DDR3 consume 90 percent of the company's production.

Image Credit: TomsHardware
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jbwhite99
January 16, 2010 at 3:30pm
If supply catches up with demand, we should see prices drop - and if not, I expect to see more suppliers pop up to fill in gaps in demand
While I realize that DDR2 was free last year (in specially marked boxes of Cheerios), what we see going on right now smacks of another round of price fixing. I don't think that supply shrunk as much as it did.
I keep hearing people say that they are switching over to make "more profitable" flash memory, but I can get 8GB flash cards for the price of 2GB of DDR2 or DDR3.
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