Powerchip ready to raise DRAM prices with increased demand

Powerchip has predicted that by the second quarter of this year, there will be a rise in demand for its DRAM components.

It has said that the jump in demand will come as contract computer manufacturers’ businesses pick up and this will also lead to DRAM price hikes.

According to Taiwan’s Economic Daily News, Powerchip chairman Frank Huang said that between April and June demand for DRAM would exceed supply.

“Based on what our OEM clients tell us, we would forecast second-quarter growth,” said Powerchip spokesman Eric Tang. “But the picture is changing very fast, so we don’t have any solid figures yet.”

However, the rise and profits could just be for Powerchip. Back in October the company was named as the only profitable DRAM chipmaker in Taiwan.  

It posted US $394 million (NT$12.2 billion) after-tax net income throughout the first three quarters of this year. Net income for the last quarter also impressed market watchers amounting to $62 million (NT$1.9 billion).

The figures made PSC the only profitable DRAM chipmaker in Taiwan compared to Nanya Technology and Inotera Memory, which had accumulated losses. A slumping market further worsened the losses.

Elpida agrees that now is the right time for a price hike in DRAM. Earlier this month it announced plans to raise the price on personal computer DRAMs by 10 percent.

It plans to raise DRAM prices which are going for a third of what they did last year from as early as the end of this month.