DDR2 price premium narrows to 5-10 percent in contract market

Currently, DDR2 chips in the spot market account for less than 5% of total DDR2 chip supply, according to a DRAMeXchange survey of major module houses and channel suppliers. Although DDR2 modules are priced at a premium of 30-60 percent over DDR modules in the spot market, the price premium DDR2 has over DDR in the contract market has narrowed to 5-10 percent and at times DDR2 has even been priced lower than DDR. We believe DDR2's penetration in the spot market will accelerate in the second half of 2005 when DDR2 667 MHz is launched on the market.

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