New Intel chips prompt rise in demand for DDR3 memory

A new series of Intel microprocessors aimed at the computer server market has caused a spike in demand for DDR3 (double data rate, third generation) DRAM chips, according to Samsung Electronics.

The world's largest memory chip maker said Tuesday it has ramped up production of DDR3 memory chips over the past month to meet heavier demand related to the launch of Intel's Xeon processor 5500 series.

The production increase is important for DDR3 technology because new DRAM technologies normally find their way into the computer server market before finally making it into desktop and then laptop computers. As production of DDR3 increases, the price-per-chip declines, making them more affordable for less expensive devices such as PCs.

Server makers are generally willing to pay a premium for the increased performance of new memory chip technologies, while a sluggish PC market this year means vendors are less willing to trade up from DDR2 (DDR, second generation) chips because they're much cheaper.

DDR3 memory chips boast several improvements over DDR2, including twice the system performance, speeds up to 1,333Mbps (Megabits per second) and using at least 60 percent less power, Samsung said.

Intel plans to launch two more DDR3-only chip series in the second half of this year, according to a joint statement.

Samsung currently sells 1Gb and 2Gb DDR3 DRAM chips and several memory modules that have already been validated by Intel to work with its microprocessors.