DDR3 module prices to fall to near US$20 by end-2010

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After having slid lately, contract prices for 2GB DDR3 modules are likely to be further dragged down by continued weak end-market demand, according to sources at DRAM makers. Contract quotes for mainstream DRAM modules may trend down to near US$20 by the end of 2010, driving the price of 1Gb DDR3 chips to almost US$1 close to the "break point" for Taiwan-based providers, the sources indicated.

Late October contract prices for 1Gb DDR3 chips plunged to average US$1.53, with quotes in the low range falling below the US$1.50 mark. For 2GB modules, quotes were in the US$26-27 range, down 10-15% sequentially.