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DRAM Prices at 22-Month Low, Start Buying

1 Gb DDR3 fell to just $0.87, which is a 3.3% decline just for January, while 1 Gb DDR2 is trading at the spot market at around $1.45.

The low prices are primarily due to apparently weak demand from PC market and increasing DRAM production, which was prompted by an optimistic outlook for PC sales. The 1 Gb DDR3 memory chips are currently seeing the highest demand and lowest prices as a result.

DRAMexchange said that especially second-tier chipmakers will have to cut their production to be able to survive this downturn and help stabilize DRAM prices.

For PC makers, however, the current market is seen as an opportunity to boost DRAM capacity in their systems and consumers are likely to see lower DRAM prices in stores as well. The bottom line? If you have been waiting for a good time to upgrade the memory in your PC, keep an eye on the market now.