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November 16th, 2010, 11:20 GMT · By

DDR3 Prices Bound to Fall in Early 2011

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Samsung DDR3 Chip
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Most of you that were shopping for computer memory at the begging of the year probably recall that prices went sky-high in just a matter of weeks forcing you to recalculate your budget or, even worse, settle for a lower amount of memory that what you initially wanted to go for, so you will be probably happy to know that prices are bound to drop yet again, judging by the latest reports that came our way.

This news actually comes from the DigiTimes publication that cites "DRAM industry sources in Taiwan," stating that 2Gb DDR3 and 1Gb DDR3 chips have dropped in price due to increased global supply.

But, according to the same source, things will go even further since pricing is expected to fall yet again, to about US$2 and US$1 around the end of 2010 or in early 2011.

Since, right now, 2Gb DDR3 and 1Gb DDR3 chips are sold for about $2.50 US and $1.30-1.40 US this would mean that 4GB DDR3 kits could be produced for as low as $32 US, down from roughly $40 right now.

According to the same source, this will lead to reduced profit margins since DRAM manufacturers currently find it hard to break even if they don't use 50nm, or lower, fabrications technologies for their 2Gb DDR3 chips, companies like Powerchip Technology or ProMOS Technologies being is such a position as they are stuck with 60nm production facilities.

Going for a quick search online reveals that 4GB DDR3 memory kits can go for as low as $54.99, but this is bound to change once companies start purchasing DDR3 chips at the prices stated earlier.

This could mean that we will most probably see 4GB DDR3 memory kits going for as low as $40, especially if companies enter into a price war, as I think it will most certainly happen.

TELL US WHAT YOU THINK:

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READER COMMENTS:


Comment #1 by: Mircea C on 16 Nov 2010, 12:39 UTC reply to this comment

Dear Sorine,
"2Gb DDR3 and 1Gb DDR3" GB not Gb because is not an Internet conection speed :P.

Comment #1.1 by: RD135 on 17 Nov 2010, 13:34 GMT

Actually Gb is correct. DRAM chips are made in Giga Bit (Gb) density. Memory modules (DIMMs) are qouted in Giga Byte (GB).


Comment #2 by: Sorin Nita on 17 Nov 2010, 13:26 UTC reply to this comment

Actually Gb is correct since the article refers to the chips used for building DDR3 sticks (16 such 2Gb chips make a 2GB memory stick).


Comment #3 by: Lizz on 18 Nov 2010, 01:59 UTC reply to this comment

Hi Sorin,
from your comment: "right now, 2Gb DDR3 and 1Gb DDR3 chips are sold for about $2.50 US and $1.30-1.40 US this would mean that 4GB DDR3 kits could be produced for as low as $32 US, down from roughly $40 right now."
you didn't take into consideration the manufacturing cost of 4GB DDR3 modules, with 16 chips at $2 (16*2=$32), I am 100% confident that the King modules maker nor its competitors, would do business at just chip cost @_@
no reason to survive, eh ??

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