Memory prices set to rise

The two biggest DRAM suppliers, Powerchip and Elpida, have stopped shipping chips to the spot market, resulting in tighter supply. DDR2 1Gb spot prices have stayed strong at $1.2 and industry watchers expect to see prices move nearer $1.50 by end of June.

DRAMeXchange reckons that DRAM contract prices will move to between $9 - $10 a GB from $8 to $8.50 last month, a 15 percent increase. Some DRAM makers are reportedly looking at a target of $12 - $13 a gigabyte by the end of this month.