Nanya Technology, Taiwan's No.2 DRAM maker, is in talks with clients to raise the contract price of its chips by 10 percent later this month, following a

recent cut in production and recovering demand.

Nanya Tech Vice President Pai Pei-lin said the effects of the recent industry-wide cut in production were being felt and some computer vendors were

increasing demand for dynamic random access memory (DRAM) chips.

Nanya Tech raised the contract price by 10 percent in the first half of April from the late December level, and the company would raise the price by a

further 10 percent in the second half of April, Pai said.

"From today, we will talk to our clients to ask for a 10 percent increase in chip prices," Pai said.

If market conditions improve further, Pai said his company would keep raising prices but he did not give further details.

The news came after the close of Taipei stock market on Thursday. Nanya Tech shares surged 6.94 percent to their daily limit, outpacing the main TAIEX's 2.08

percent rise. Nanya Tech is set to post its first-quarter results on April 30.

By: Docmemory
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