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Samsung previously maintained a low-price strategy for DDR2 amid talks of consolidation among US, Japan and Taiwan competitors, but the possibility of such consolidation is now less likely, or may only come in a small scale, the sources commented.

Samsung's revised pricing strategy may now gradually help push the price of 1Gb DDR2 chips up to US$1.50 later in the third quarter, compared to the Korea vendor's cost of US$1.20-1.30 for its DDR2 chips made using 50nm process, the sources indicated.

A price rally would help struggling Taiwan-based DRAM makers reduce their losses, the sources said. But US$1.50 will still be under their cost levels of US$1.60-1.90, as Taiwan makers mainly use 65nm and 70nm processes to produce their chips, the sources explained.