While spot market prices for 2Gb DDR3 have dropped to below US$1, Taiwan-based DRAM makers are not concerned but are worried about competition due to the lower production costs Samsung Electronics and Hynix Semiconductor will enjoy when they begin volume production based on 30nm technology. The move will reduce costs for 2Gb DDR3 to US$0.65, according to industry sources.

Samsung and Hynix have kicked off 30nm trial production and are expected to start volume production at the end of 2011 or in the first half of 2012, the sources indicated.

To cope with forthcoming cost competition, Taiwan-based Rexchip Electronics has upgraded its DRAM manufacturing process to 45nm at its 12-inch fab and has begun introduction of 30nm technology, aiming to shift the monthly capacity of 80,000 12-inch wafers to a 30nm process by the end of 2011, the sources pointed out.

Inotera Memories, another Taiwan-based DRAM maker, finished upgrading to 42nm process in September and has begun trial production based on 30nm technology, aiming to start 30nm volume production of 4Gb DDR3 in 2012, the sources indicated.