DRAM Prices on the Rise
As a result of the speculated rise in price of computer memory chips, shares of Samsung, Hynix, and other major producers rose today. Shares of South Korean company Samsung, the largest producer of DRAM in the world, rose 1.2% today, whereas the runner-up, Hynix, also based in Korea, climbed 4.3%. Other companies including Powerchip, Nanya, and Inotera experienced gains similar to Samsung’s.
"Prices of the benchmark chip yesterday rose for the first time in a week on the spot market, helping fuel optimism computer makers are buying DRAM ahead of back-to-school and Christmas demand during the second half. Prices have plunged more than 60 percent this year, eroding earnings at companies such as Samsung, Hynix and Nanya Technology Corp."
Prices for DRAM this month are expected to be at least 10% higher than last month. The 10% raise by chipmakers represents the biggest increase since March of 2006. The rising prices should help improve the companies’ profits for the next few months. Experts believe that the chip prices will be sustained by peak seasonal demand in the second half of the year, which means that RAM is probably going to become more expensive very soon, and stay that way for at least a few months.