Prices for DDR2 memory chips are on the rise

DDR2 memory prices have been incredibly low these past few months, but the trend could finally be reversing, much to the relief of memory makers. DigiTimes reports that prices for fully tested 1Gb DDR2 memory chips went up 7% on April 15 and "soared over 6%" yesterday, ending up at around $1.20. Right now, memory market research firm DRAMeXchange quotes a session average of $1.18 with a high of $1.22.

Is DDR2 RAM just going to keep getting more expensive? Reportedly, DRAMeXchange believes DDR2 contract prices will go up 15-20% between the first and second quarters. DigiTimes also quotes industry sources who say memory manufacturers expect 1Gb DDR2 chips will eventually reach $1.50.

In any case, we might be seeing the impact of this week's increases already. The 4GB Kingston DDR2-800 memory kit we recommend in our system guide has gone up from $43.99 to $47.49 at Newegg since we published, even though it was sitting comfortably below $40 last week. We're seeing fewer sub-$40 offerings from other vendors, too.

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