June 2, 2008 – Hynix Semiconductor reportedly is ready to lay down up to 15% price hikes on its memory chips, after similar increases in May and April, convinced that the market has firmed up enough to support such a move, according to the Korea Times.
“We will raise prices by about 15% this month, a similar level seen in May and April,” an unidentified “high-ranking Hynix official” was quoted by the paper as saying. With average contract prices for DRAMs (512Mb DR2) rising 6.6% to $1.13 in the end of May, “we will follow the up-trend on prices and there is room for negotiating a percentage increase,” the Hynix source told the paper. The company is negotiating with its bigger customers over possible lesser increases, with a final decision expected by the second week of June, the source said.
Chipmakers are raising their contract prices in the belief that an investment turnaround is imminent from “cash-starved latecomers” in the industry, and ahead of the seasonal back-to-school demand push, the paper notes. A return to supply/demand balance is expected sometime later this year.
Meanwhile, Samsung also is seen raising its prices, though only by about 5%, as it did early May, the paper noted, adding that Elpida also is planning on a price hike.