South Korea's Samsung Electronics Co., the world's largest maker of computer memory chips, expects third-quarter operating profit in its memory chip business to double or triple from the previous quarter, according to Chu Woo-sik, chief of Samsung's investor relations team. "The market demand for memory chips is very strong," said Chu. "We keep raising our contract prices for both DRAM and NAND chips." The executive declined to reveal specific price increases, however.
NAND flash memory chips are widely used in consumer electronic devices, such as digital music players and digital cameras, while DRAM chips are used in personal computers. Both Samsung and analysts have forecast stronger third-quarter results for the company on a quicker-than-expected rebound in DRAM prices and stabilizing prices of flash memory chips and liquid crystal displays. "We're witnessing a significant rise in NAND chip demand for new applications like high-end handsets and portable multimedia players," Chu said. "DRAM chips are also selling well amid the seasonal back-to-school demand for computers and other gadgets."