Nanya expects that the demand for DDR2 will raise in the third quarter of this year, and that the DDR2 production will account for 20% to 25% of its total 0.11 micron capacity in the third quarter.
Nanya will migrate 40-50% of total capacity from 0.14- to 0.11-micron in the third quarter, Kau said. The progress is about a quarter ahead of its earlier plan.
DDR2 production is forecast to take up half of Nanya’s 0.11-micron capacity in the third quarter, Kau added.
With Intel’s launch of PC-use Springdale and server-use Lindenhurst chipsets in the second quarter, DDR2 is projected to penetrate 25% and 10% of the high-end desktop PC and the low-end server market, respectively, in the third quarter, up from 5% and 2% penetration in the second quarter, according to market research firm iSuppli.
Strict Intel validation, low 0.11-micron yield rates and difficulties in DDR2-related packaging and testing technology are expected to constrain the supply of DDR2 chips and lead to a potential shortage in the near future, sources with other DRAM makers said.
Considering the potential shortage, DDR2 chips may enjoy a more than 50% price premium over DDR chips until the third quarter, sources estimated.