DDR2 Price must drop

@ 2004/01/24
Mobo makers: DDR2 not mainstream this year unless price falls massively

Intel’s upbeat projection for Prescott processors and subsequent boost in demand for DDR2 memory got a cold shoulder from several local motherboard makers, as they remain conservative about the actual adoption rate of DDR2 memory this year.

Unless DRAM makers can narrow the price gap between DDR and DDR2 chips to under 20%, DDR2 memory is not likely to become a mainstream choice before the end of this year, local board makers said.

DDR2 chips are estimated to enjoy close to a 100% price premium over DDR chips. The gap is mainly due to the limited number of suppliers. Companies that have introduced DDR2 chips are Elpida Memory, Micron Technology and Samsung Electronics.

Intel will roll out its Prescott processor, which supports DDR2 memory, in the second quarter, and has set an aggressive target to capture a 40% share in the desktop PC processor market before the end of this year.

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