DDR2 price drop has a dark side

TAIWAN'S TOP PRODUCER of DRAM, Nanya is a bit worried by the weakness of DDR2 contract prices, which could result in its profits suffering.

While everyone had predicted that the price of DDR2 would drop, they thought the loss of revenue would be made up by the shift to 50nm process technology and DDR3.

However Nanya told Digitimes that it can't see how the new process will offer any significant contribution to its profitability until the second quarter.