DDR3 has a long adoption process ahead

Implications: 1. DDR3 platforms will not be widely adopted in 2007. 2. DDR3 demand will increase in 2008 when server/notebook platforms become available 3. There is no reason to get excited about DDR3 making a large impact on the market this year, it will not

Analysis: DDR3 is a new DRAM memory technology appearing as a natural step in the evolution of DRAM memory. DDR3 uses less power, produces less heat and operates at faster bandwidths than its predecessors. However, currently, DDR3 is at an extremely high price premium compared to DDR2/DDR1 and not many system builders have made significant platform (mobo) purchases.

The cost of the memory is currently a very high percentage of total BOM (Bill of Materials) cost for a DDR3 based computer, so only enthusiasts and memory-intensive application users will actually spend the money to utilize this memory this year.

As ECC REG DDR3 comes to market in 2008/2009, the adoption rate will dramatically increase as the DDR3-based server market will create demand. Also, as we see with any new memory technology, prices will gradually but continually trend down after widespread introduction occurs and more memory manufacturers announce and release their DDR3 modules.