Memory prices are on their way down again

Memory makers just can't seem to catch a break. As DigiTimes reports, spot prices for 1Gb DDR2 memory chips recently climbed thanks to both Qimonda's insolvency and production cutbacks from other memory makers. However, those prices may be about to go down yet again.

Qimonda filed for insolvency in late January, and DigiTimes says contract prices for "mainstream DDR2 chips" rose by 6-8% in the first part of this month. However, the site quotes memory module makers who think 1Gb DDR2 chips will have a hard time hitting the $1.5 mark, and they might go back down to $1 a piece. The manufacturers blame "sluggish" demand from Europe and America, which supposedly counteracts increases in the Chinese and Japanese markets.

According to DRAMeXchange, 1Gb DDR2 chips are already pretty close to $1. The market intelligence firm said prices reached $1.2 three days ago, up from just 59 cents in mid-December 2008.

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