DDR2 prices are dropping

Prices for DDR2 chips have recently fallen to US$5.50 per chip from US$6.50-7.00 a month ago due to excess inventory, according to sources.

DRAM chipmakers are currently holding five to six weeks worth of DDR2 inventory, indicating that demand for DDR2 still lags supply, the sources said. In contrast, some Taiwan-based DRAM makers are holding only 10 days-worth of DDR.

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