The price of 1Gb DDR2 (double data rate, second generation) that runs at 667MHz could rise to between US$1.20 to $1.50 in the near term as the DRAM market absorbs the Qimonda shock, according to DRAMeXchange Technology, a clearinghouse for the chips.

The price of the chips on Friday averaged US$0.85 on DRAMeXchange, indicating a rise of as much as 76 percent should they reach $1.50 each.

Some analysts say a price rise could be short lived because even if Qimonda shut down immediately the chip glut would still exist and several companies -- or even the German insolvency administrator handling Qimonda's case -- could dump inventories. But the bankruptcy filing and near term changes in business, such as Inotera Memories ceasing to supply Qimonda with 35 percent of its output, will disrupt the supply chain.

Qimonda's woes could far more significantly affect the graphics and computer server markets, according to Nam Hyung Kim, memory industry researcher at iSuppli.

Qimonda accounted for 26 percent of global shipments of graphics DRAM and as much as 20 percent of the DRAM for computer servers, he said. Companies that use Qimonda's chips will have to prepare for a possible shutdown by finding new suppliers for the chips.