DDR3 prices are on the way down

Memory makers can't seem to catch a break. The short reprieve from rock-bottom memory prices they enjoyed throughout this year is coming to an end. According to DigiTimes, which was tipped off by "DRAM industry sources in Taiwan," prices for 1Gb and 2Gb DDR3 memory chips will plummet by 20-30% by the beginning of next year due to global oversupply.

DigiTimes cites existing spot prices of around $2.50 for 2Gb (256MB) DDR3 chips, a figure echoed by DRAMeXchange, and it says pricing will fall to $2 "around the end of 2010 or in early 2011." 1Gb (128MB) DDR3 chips should sink from $1.30-1.40 to $1 in the same time frame, as well. Since it takes eight 2Gb chips to put together a 2GB module, you can do the math—$2 a chip means $32 worth of memory chips per 4GB kit, down from roughly $40 right now.

A quick peek at Newegg shows 4GB DDR3 memory kits are going for as little as $52.99 today, so a plunge below the $50 mark might just happen by Christmas time. That would be good news for folks building new PCs for the holidays, not to mention those who could only afford a 2GB kit when buying a system earlier this year and are now longing for an upgrade. The long spell of oversupply and resulting dirt-cheap memory prices we saw at the end of the last decade wreaked havoc among memory makers, though, so they're probably not itching for a repeat.

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