Hynix and some Taiwanese DRAM makers have recently slashed contract prices for their 256Mbit (16Mbit×16) graphics DDR 266MHz and 333MHz chips by 12-13% from about US$ 4 per chip currently. The price cut can encourage the migration of graphics chips from 128Mbit to 256Mbit graphics DDR chips and helps Hynix and the Taiwanese companies gain market share in this segment. The graphics chipmakers’ introduction of new chips requiring 256Mbit memory is expected to boost demand for 256Mbit (16Mbit×16) DDR chips next year. Supply of graphics card-use DRAM is expected to remain tight in the near future. However, market leaders such as Samsung may also cut their prices to protect market share.