DDR2 "shortage" causes DRAM prices to soar

Posted by a staff writer

Contract prices of DDR2 memory chips lifted by nearly 14 percent in the first half of this month due to a shortage of the chips.

That's according to DRAM Exchange, which said the benchmark price is now $41, up from $36.

The analyst company thinks that DDR2 contract prices are likely to continue to rise during the month.

Manufacturers of DRAM want the next generation of memory, DDR3 to displace DDR2, and have done so for quite some time.

DRAM Exchange said that PC OEMs are beginning to adopt DDR3 memory chips because of the high price and "scarcity" of DDR2 chips.

Eventually DDR3 will displace DDR2, and DRA Exchange is forecasting, perhaps rather optimistically, that that will happen at the end of the first quarter of next year.