Although Taiwan DRAM makers have been ramping up DDR2 production, they are seeing their inventory build up, as demand has not picked up as expected, according to market sources.

The DRAM makers had expected DDR2 to become the mainstream memory product in the second half of this year.

Taiwan makers currently only produce DDR2 400, and with the product having no obvious improvements over comparable DDR products, international PC OEMs have begun reducing their orders for DDR2 400, the sources said.

According to sources, DRAM makers are also seeing delays in receiving DDR2 certification from notebook OEMs.

Demand for DDR2 has failed to pick up for another reason: memory makers have been rushing to sell off their DDR at low prices in anticipation of a shrinking DDR market, and therefore curbing the growth of DDR2, the sources said.

Article translated by Rodney Chan and edited by Michael McManus