Taiwan DRAM makers may flood spot market with DDR2

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DRAM makers in Taiwan plan to accelerate the market?s migration to DDR2 by shipping all of their 50-60 million DDR2-667 chip inventory to the spot market in the third quarter in an attempt to drive down DDR2 spot prices below DDR prices, sources with the makers said yesterday.

The makers hope that the low prices in the spot market will boost demand from regional system integrators for DDR2-667, the sources said. Many makers blame low demand for DDR2 in the spot market for the delayed migration from DDR to the next-generation memory chips, the sources said. A spokesman with a major memory maker revealed that 30-40% of the world?s current DRAM output is DDR2.

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