The DRAM price increases are driven by a number of factors, but mainly resurgent demand for computers, the main end-product for DRAM. August and September usually mark the beginning of the hot sales season for PCs and notebooks due to back-to-school purchases and as stores stock shelves for the holiday season. This year is different both because the global recession has caused some analysts to question how strong the back-to-school season will be and because software giant Microsoft will release a major operating system upgrade in Windows 7.

Jenny Lai, computer industry analyst at CLSA Asia-Pacific Markets, predicts PC shipments will post year-on-year growth for the first time in a year during the fourth quarter due to the launch of Windows 7 in late October and on strong sales of laptop PCs.

The improving PC market couldn't come at a better time for Taiwanese DRAM makers

The five companies continued to report losses in the second quarter, but their combined loss narrowed to NT$27.53 billion from a NT$36.97 billion loss in the first quarter, according to financial reports they filed to the Taiwan Stock Exchange. Revenue also improved slightly, to NT$26.54 billion from NT$21.39 billion. The figures remain well below last year. The five companies reported combined losses of NT$24.73 billion in the second quarter of 2008, on much higher revenue of NT$51.92 billion.

Powerchip Semiconductor's net loss in the second quarter widened to NT$11.73 billion from a loss of NT$7.27 billion at the same time last year. But its revenue fell to NT$4.68 billion compared to NT$16.88 billion last year. Powerchip's loss and revenue in the second quarter both marked slight improvements compared to the first quarter of this year.