DRAM contract prices are set to edge higher in October, with prices for 4GB DDR3 modules soaring by double digits, according to industry sources. October contract prices for mainstream 4GB DDR3 modules are expected to reach US$35-38, said the sources. Prices already made double-digit gains in September.

DRAMeXchange has disclosed that contract prices for 4GB DDR3 modules rose to as high as US$32 in the second half of September, up about 14.3% compared to the second half of August, due to the impact of a September 4 fire at SK Hynix' China fab.

DRAM contract prices will continue rising in October and likely through November, due to continued limited supply and lower inventory held by PC OEMs, the sources noted.

As for spot prices, 2Gb DDR3 chips are now quoted at as high as US$2.50 while prices for 4Gb DDR3 parts have risen to US$4.50, the sources disclosed.

In other news, SK Hynix has significantly increased production capacity for DRAM chips at its memory fabs in South Korea as well as allocating more of its NAND flash capacity to DRAM to offset production losses at its fire-hit facility in China, the sources observed.

The fire at SK Hynix's fab in Wuxi, China could affect as much as 50% of the vendor's overall DRAM production, DRAMeXchange suggested. SK Hynix held a 30% share of the global DRAM market in the second quarter of 2013, following Samsung Electronics' 32.7%.

4GB DDR3 prices to rise by double digit percentage in October