South Korean chipmakers are set to benefit from rising demand for semiconductors, a global market research firm said Wednesday.

The average price of the mainstay dynamic random-access memory chip (DRAM) product 'DDR4 4Gb 512Mx8 2133MHz' jumped more than 12 percent to US$3.09 as of April 28 from $2.75 on March 31, according to DRAMeXchange.

The memory and storage division of TrendForce expected DRAM prices to continue to rise throughout this year due to demand from handset manufacturers and global data centers.

DRAM chips are widely used in computers.

NAND flash memory, another chip that local companies are competitive in, is a nonvolatile computer storage medium that doesn't require power to retain data. Such chips have emerged as a cash cow for chipmakers in recent years thanks to their function and cost.

South Korean chipmakers Samsung Electronics Co. and SK Hynix Inc. are the world's top two manufacturers of the high-end computer chips. They own a combined 74 percent of the global DRAM market and 47 percent of the global NAND flash sector.

Samsung Electronics posted a net profit of 7.68 trillion won in the January-March quarter, up 46 percent from 5.25 trillion won a year earlier. SK Hynix's net profit more than quadrupled to 1.9 trillion won from 448 billion won during the same period, according to the companies.

In the first quarter, shares in Samsung Electronics jumped about 14 percent and stocks in SK Hynix also gained 13 percent, both outperforming the broader KOSPI's 6.6 percent gain.

Analysts say the two chip giants have further room for growth at this juncture as demand will push up the prices.

By: DocMemory
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