DDR3 price premium over DDR2 to shrink to 10% in 2H

Amid Intel's aggressive push to supporting DDR3-powered platform, DRAM makers are working with the processor giant to advance their volume production schedules in the hope that the joint effort will result in a less than 10% price gap between DDR3 and DDR2 in the second half of 2008. Some DRAM makers believe that DDR3 will grow its role more obviously in 2008, after seeing DDR2 remain the mainstream memory standard for several years. The relatively high price premium of DDR3 over DDR2 so far has however discouraged PC OEMs to migrate. The price gap should shrink more noticeably this year, they projected, due to the aggressive push by Intel.

The DRAM makers expect some PC vendors will be subsidized by Intel to migrate to DDR3-based platforms, and this should help encourage the entire industry to migrate accordingly. They noted that some PC vendors will only introduce DDR3-based systems in the second half of the year. About 30% of new PCs shipping worldwide will be powered by DDR3 in the fourth quarter of 2008, they estimated.

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