DRAM makers have sped up their move to producing DDR3 chips after prices for contract quotes for DDR2 parts fell through the floor.

According to DigiTimes, Powerchip Semiconductor Corporation (PSC) and its joint venture with Elpida Memory, Rexchip Electronics, were both quoted in previous reports as indicating that their shares of DDR3 wafer starts would exceed 70 per cent. PSC and Rexchip have increased DDR3 output. Their DDR3 production was as low as 0-5% of overall output in the third quarter.

Nanya Technology and Inotera Memories are also flat out. Nanya wants DDR3 to account for more than half of the combined production at Nanya and Inotera in the first quarter. According to a DRAMeXchange July report, DDR3 chips would account for 90 percent of Nanya's and 20 per cent of Inotera's overall DRAM production in the fourth quarter of 2009.

DRAMeXchange said that contract prices for 2GB DDR3 modules, which had stayed flat since November 2009, edged up by two to five per cent in the first half of January. In contrast, the 2GB DDR2 segment remained unchanged. The price tracker also pointed out demand for DDR3 chips is strong.