Samsung said to be slashing graphics memory pricing
Samsung Electronics is unloading its graphics memory inventory by offering prices that are much lower than competitors’ production costs for the segment, according to industry sources. Samsung’s low-price move for graphics memory comes as a further blow to Taiwan’s DRAM makers, which are already suffering from plunging prices in the commodity DRAM market. Graphics memory provides higher margins than commodity DRAM, but Samsung’s move may now trigger a free fall for graphics memory prices.
The sources claim that Samsung 256Mb (16Mbx16) DDR2 is selling for only US$0.50. Other DRAM makers think that the price is unbelievably low, as typical costs for this type of DDR2 graphics memory chip, from the wafer to back-end production, would usually run about US$1.40.
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