DDR3 set for gradual ramp-up

The next generation of SRAM chips will be key for low-power, high-performance applications such as video on demand. But demand needs to go up for prices to come down—and that will happen, analysts say.

By Tam Harbert, Contributing Writer -- Electronic Business, 8/7/2007

Memory vendors have begun sampling DDR3 SDRAM chips this summer, but high-volume sales aren't expected until mid-2009.

DDR3 (double data rate) synchronous DRAM is the next generation of mainstream memory for PCs and laptops and will gradually displace DDR2 over the next three years, according to Nam Hyung Kim, director and principal analyst of memory ICs and storage systems at iSuppli. The new memory has higher densities (512 Mbits to 8 Gbits, versus only up to 2 Gbits for DDR2), higher speeds (800 to 1600 Mbps, versus an upper limit of 800 Mbps for DDR2), and lower power (using a 1.5V power supply, versus 1.8V for DDR2).

DDR3 will be key for applications that need low power and high performance, according to Paul Fahey, Intel's director of platform memory operations. "DDR3 will be an essential ingredient in future mobility platforms and applications requiring the highest performance, such as video on demand, encoding and decoding, gaming, and 3-D visualization."

In May Intel introduced its P35 chip set, the first to include support for DDR3. AMD will hold off on introducing its chip set until DDR3 begins shipping in higher volumes, according to Joe Macri, AMD's senior director of engineering, Circuit Technologies, and chair of the JEDEC committee that worked on the DDR3 standard. "We don't expect DDR3 to hit its stride until 2009, and probably not until the second half of 2009," says Macri.

Although DDR3 parts are available today, they are not yet in high demand, says Craig Stice, senior product line manager at Micron Technology. PC and laptop vendors will start ramping up with the new memory in mid-2008, he says. Micron is sampling a 1-Gbit part now and plans to introduce a 2-Gbit part later this year.

Today, DDR3 costs two to three times as much as DDR2 memory, Stice notes, but that price will drop as volumes increase. He estimates that DDR3 will reach price parity with DDR2 in mid-2009.

The JEDEC Solid State Technology Association published the final DDR3 standard in June. (The standard is available for download at www.jedec.com.) JEDEC is holding a technical workshop on the standard in San Jose, CA, Oct. 3 and 4. It will include presentations by major DRAM and chip-set producers.