DDR demand remains strong

news
Apr 5, 20062 mins

Intel is 'flooding' motherboard makers with aggressive selling off of its 865G chip sets

Sales of Intel’s 865G chip set are helping to keep demand strong for DDR (Double Data Rate) DRAM (dynamic RAM) chips, according to DRAMeXchange Technology, a Taiwanese company that tracks memory prices.

Over the last week, the spot price of 256Mb 400MHz DDR chips rose one percent to $2.01, while the price of 512Mb 400MHz DDR chips increased by 3.8 percent to $4.10, DRAMeXchange said. Continued strong demand for DDR meant that DDR2 prices remained weak, with prices for faster 512Mb 533MHz DDR2 chips falling 2.1 percent to $4.72, it said.

Demand for DDR chips was strong because Intel is aggressively selling off stocks of its 865G chip set, which is designed for desktop computers that run the Pentium 4 processor, DRAMeXchange said. Intel has reduced the 865G’s price in a bid to clear out its inventory, and the chip sets are now “flooding” motherboard makers, it said.

As more 865G chip sets are sold, DRAMeXchange expects to see demand for DDR “pick up further.”

However, users shouldn’t expect to see a sharp drop in DDR2 prices. An ongoing shortfall in DDR2 chips means the 512Mb part’s price will remain flat or drop by up to three percent, DRAMeXchange said.

This supply shortage should keep prices stable through April, it said.