iSuppli: DRAM Market Ends Year on a Low Note

Paul Lilly

It's the same old song and tune for the DRAM market, which continues to sing the blues over falling chip prices. How bad is it? According to market research firm iSuppli, "DRAM continued to head down a grim path of unstoppable decline in December." Yikes.

It's the lowest point of the year for DRAM makers, who had plenty of low points in 2010. By the second week in December, the contract price for a 2GB DDR3 DRAM module was only $21, down more than half of the $44.40 selling price just six months ago. And it's not just DDR3; DDR2 modules are suffering the same kind of price drops.

"DRAM pricing appears to be reaching critical levels, and nothing is likely to stop prices from continuing their slide in the next six months," iSuppli says . "In particular, as DDR3 reaches $1 per gigabyte, DRAM manufacturers operating at the 60-nanometer (nm) process node will start to face the painful economics of costs exceeding prices. In 2008 when prices dropped below $1 per gigabyte, manufacturers with lagging process technology were forced to throttle down production."

Things don't look to improve for DRAM makers through at least the first half of 2011. On the flip side, PC makers have been able to load up machines with more RAM without jacking up the price.

Image Credit: iSuppli

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