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Samsung allegedly dumping GDDR2 pricing

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Upsets competitors

According to Digitimes, Samsung has been dumping stock of GDDR2 memory onto the market for as little as 50 US cents per 256Mb (32MB) DRAM chip.

Its competitors are up in arms about this, as these chips normally cost about US$1.40 to manufacture. This is a blow to many companies producing DRAM chips for entry level graphics cards and the market is already struggling due to the generally low demand for DRAM. They're also worried that this will put the market in a free fall which could hurt them further.

However, we can see why Samsung is doing this as eight of these modules makes up 256MB on a card and cards with GDDR2 will be dissapearing soon enough, especially with GDDR3 prices coming down. Besides, most consumers will want a 512MB card these days, even at the entry level. If nothing else is proof of this, just look at the slow sale of the 256MB Radeon HD 3850 cards, as it seems like everyone is waiting for the 512MB versions.

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Last modified on 19 December 2007
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