Here's a REUTERS story as reprinted by the South China Morning Post today:
[quote]Wednesday, January 16, 2002
Hynix expected to raise chip prices 30pc
South Korea's Hynix Semiconductor is likely to raise contract chip prices by more than 30 per cent in the second big rise this month, an industry source said on Tuesday.
The world's third-largest memory maker raised contract prices by 30 per cent on average earlier this month to reflect a rebound in spot prices.
"The expected rise will push contract prices of the industry standard 128 megabit DRAM [dynamic random access memory] chips above US$3," the industry source said.
Spot prices for 128 megabit DRAM chips used for computers have almost quadrupled since dipping below US$1 in October.
Chip makers sold computer memory chips for less than what they cost to make last year due to a severe information-technology slump combined with overcapacity, which led major chip makers to seek industry-wide consolidations.
Hynix and Micron Technology of the United States, the world's third- and second-ranked computer memory chip makers, are discussing a possible alliance which could reshape the battered industry.
Hynix, formerly Hyundai Electronics, is considering selling the entire memory business to its US rival, although pricing differences are delaying a deal, which could be worth between US$2 billion and US$6.5 billion.
It aimed to sign a memorandum of understanding (MOU) with Micron in January but the Korean chip maker's chief executive hinted over the weekend the process might take longer than expected, depending on how fast it narrows differences with creditors over Micron proposals.
Hynix's chief executive Park Chong-sup told Hynix employees there were further talks and procedures to go through before clinching the agreement.
Shares in Hynix fell 11 per cent to close at 2,820 won on Tuesday versus a 3.4 per cent fall in the benchmark index.
They have advanced 14 per cent in about a month, buoyed by prospects for an alliance and three increases in chip contract prices that have kindled hopes of a rebound for the sector.
Memory chip prices fell nearly 90 per cent last year, but signs of a recovery emerged in December.
Chip analysts said it remained unclear whether the chip price increases reflected rising demand from PC makers or simply a more aggressive pricing strategy by chip makers.\t<hr></blockquote>