Semiconductor Prices Soaring

Prices of semiconductor memory chips, the key products of Samsung Electronics and Hynix, are soaring. Market researcher DrameXchange on Tuesday said the spot price of 1Gb DDR2, the best-selling DRAM chip mainly used for PCs, stood at US$2.06, up 10.5 percent from a week ago and up 31.6 percent month-on-month. The price was $2 in August last year, right before the financial crisis broke out, but plunged as low as $0.62 in December.

The prices of flash memory, a component mainly used for mobile phones and digital cameras, are also rising sharply.

DRAM prices are soaring chiefly because PCs are selling better than expected. Market experts predicted early this year that the PC market would dwindle 15 percent year-on-year. But lately they have been predicting a mere 2 percent drop at most.

Flash memory chip prices are rising due to increased sales of smartphones such as Apple's iPhone.

englishnews@chosun.com / Sep. 30, 2009 10:08 KST