Major PC vendors and Samsung Electronics are currently in a standoff over Samsung's plans to hike contract quotes for DDR3 memory in May, according to industry sources. Rival Hynix Semiconductor has kept its prices mostly unchanged or slightly up for May, while quotes from Nanya Technology remained flat, the sources said.

PC vendors are disagreeing with Samsung on its new prices for DDR3 chips, which has left May contract prices unsettled, the sources indicated, commenting that it is difficult for the chip vendor to raise prices during the weak season.

The sources revealed that Samsung's previously offered its PC customers, especially major clients that place large orders, lower contract prices than its DRAM competitors. However, the chip vendor is trying to raise its prices while its competitors are encountering supply constraints amid process transition, the sources observed.

DRAMeXchange, which tracks pricing for memory chips, has posted an announcement on its website that Korean vendors insist on raising their prices in the low range to US$45/46 in May from US$44/45, but PC OEMs want flat prices. The firm has not published early May contract prices for DRAM parts. (Editor's note: Since the publicaion of this story, DRAMeXchange has already released its DRAM contract prices and removed the announcement.)

According to DRAMeXchange, late April contract prices for 1Gb DDR2 edged up by 2-3% to average US$2.50, pushing up the price of 2GB DDR2 modules to US$43. Prices for DDR3 parts remained unchanged at US$46 on average.

However, DRAM contract prices for early May are already available from inSpectrum, another memory price tracker.

Citing comments from suppliers and buyers, inSpectrum said transactions are still being carried out in May. Most deals have kept their prices flat or posted a mild price hike as compared to April, the firm said.

Some of the deals are being put on hold due to longer-than-expected negotiation, but the amounts are not crucial, the firm added.