Samsung Electronics Co and Hynix Semiconductor Inc said that they have raised their memory-chip prices in recent negotiations with customers, reflecting a possible rebound in demand from personal-computer makers.
Samsung Electronics, the world's largest memory-chip maker, said the price increase would average 10 percent for large customers for December.
Hynix Semiconductor, the third-largest memory-chip maker, raised the price it charges customers who buy DRAM chips on contract by as much as some 20 percent for December, spokesman Kim Seung-soo said.
The increase is the first in more than a year and comes after chipmakers such as Hynix and Toshiba Corp of Japan posted huge losses when chip prices fell below the cost of production.
Recently, the price of memory chips sold on the spot market edged higher as personal-computer makers reduced inventories.
"There's been a lot of good news for chipmakers recently and this price hike may have just been the trigger," said Chang Dong-hun, who manages US$315 million at SK Securities Co in Seoul.
"There's going to be a lot of fund managers who are going to regret not having bought Samsung Electronics shares." Chang made about US$7 million from his Samsung Electronics shares yesterday.
Chipmakers sell memory chips on the spot market and on contract.
The contract price varies depending on the customer and fluctuates based on when a contract is up for renewal.
Internet edaily News earlier reported Samsung customers such as IBM Corp and Dell Computer Corp agreed to an increase of between 15 percent and 20 percent for December.
Shares in Samsung Electronics surged by their daily limit of 15 percent to 263,000, a 14-month high. Hynix shares rose 4.3 percent to 2,775.
A price increase of around 15 percent would narrow Samsung's monthly operating losses by about 30 billion won, said Choi Sukpo, a senior semiconductor analyst at Meritz Securities Co.
It's "positive news that the chipmakers will reduce losses on increasing orders and higher prices," said Jeon Woo-jong, an analyst at SK Securities Co.
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