DRAM contract prices continued to rise in North America and Europe from mid-April to mid-May.

The 30-day rolling average price to May 19 of 128MB DRAM chips was up 2.4 per cent on the previous month to $12.78 in the European market, asiabiztech.com reported.

Prices of 128MB DIMMs dropped on the spot market for the period in all three geographical areas. Spot prices in the US dropped 0.3 per cent to $110.36, 1.2 per cent to $104.93 in Europe, and 0.32 per cent to $98.64 in Asia.

Today the UK was seeing 128MB module prices on the spot market of $116, compared to around $108 a week ago, according to memory distibutor Dane-Elec.

The price rise started late last week, and prices look like staying up, the company said.

Meanwhile a Daewoo Securities report has warned that DRAM shortages will worsen in the run up to the fourth quarter.

One analyst at the company told the Korea Herald: "Samsung Electronics has only 1-2 weeks of supply, far below the appropriate inventory level of 4-5 weeks, and the shortage will get worse as manufacturers prepare for the Christmas season in the third quarter."

He reckoned a 30 per cent increase in DRAM chip prices would make Samsung and Hyundai Electronics an extra $1 billion in profits over the first half of the year. ®