Contract quotes for DRAM chips will continue to rise in November, according to Pai Pei-Lin, vice president and spokesperson of Nanya Technology. Pai also foresees a shortage of memory chips in 2010, as PC replacement demand will outpace capacity expansion.

Contract prices for mainstream DDR2 chips have been on the rise since August, growing 20% monthly to surpass DDR3 prices in October, Pai indicated. The price rally for DDR2 is expected to continue in the next two months, but prices for DDR3 look more optimistic two months later, he said.

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