The price of 256Mbit graphics memory chips is showing signs of
bottoming out now that mid-range and high-end graphics chips from ATI and Nvidia
support the memory. ATI’s Radeon 9700 and 9800 series and Nvidia’s FX 5200, 5600
and 5900 series already support 256Mbit graphics memory. The new graphics chips
will also all support 256Mbit memory.

Shipments of Nvidia NV31XP core-based graphics cards, each requiring at least
eight 256Mbit memory die, are expected to reach 500,000 units by year-end. The
graphics card makers are worried that 256Mbit graphics memory supply may be
insufficient. Two to three months ago, DRAM makers began producing less 256Mbit
memory due to low demand.