DRAMeXchange data indicates prices of the ancient 512Mb DDR memory have shot up over 30 percent in less than one month, from $0.95 to $1.25. In comparison, 512Mb DDR2 memory chip prices have dropped below $0.50. DigiTimes reports Taiwanese DRAM makers fear major South-Korean DRAM manufacturers may transfer capacity to DDR, which may bring down the price again as demand for these chips isn't that high anymore.
Although DRAM players indicated that both the DDR2 and DDR segments are money losing businesses at this point, DRAM players noted that in addition to a better pricing for DDR memory, makers also benefit from the fact that the related technology is much more mature and therefore equipment costs have already been completely amortized for the segment.
However, the players noted that DDR is only used in niche markets such as for use in older PC models or in server applications, and only customers with a strong channel presence in such niche markets are placing orders.