TAIPEI: There's a glow of optimism in the high-tech sector as the price of DRAM computer memory chips stages a steady increase. Global PC makers are gearing up for back-to-school and then a few months after that, holiday sales.

Sales could be stronger than previously forecast with the October launch of Microsoft's operating system, Windows 7.

There are several reasons for the optimistic outlook. The new OS has won good reviews from people who have tested beta editions, sparking hope Windows 7 may stir PC users who have steadfastly refused to move away from the popular Windows XP. Windows 7 also paves the way for some neat new features on PCs, like touchscreen technology that could also boost sales.

Notebook makers in Taiwan are noting movement in the market for CULV laptops which are designed with powerful but low voltage Intel microprocessors.

The devices are thin, light, inexpensive, and promise long battery life for users. Laptop computer sales by Taiwanese contract manufacturers surged in June due partly to CULV laptops.

Monthly shipments at Quanta Computer, the world's largest contract laptop maker, surged to 3.3 million units in June from 2.3 million in May, the company reported. Compal Electronics, the second biggest contract notebook computer maker, reported June shipments rose to 2.7 million units from 2.5 million in May. Market researcher IDC confirmed the rosier PC market when it released quarterly market figures last week.

Taiwan's five biggest DRAM makers reported a combined net loss of NT$159.49 billion ($4.87 billion) last year, more than a four-fold increase over a net loss of NT$36.99 billion in 2007, according to data companies filed to the Taiwan Stock Exchange. Revenue in 2008 totaled NT$179.17 billion, down from NT$255.94 billion.

The global DRAM downturn, which started over two years ago, caused chip prices to drop so low that most DRAM makers shuttered some production lines and slowed technology upgrades normally meant to increase output. These companies reported massive losses over the past few years and are strapped for cash to pay back creditors and buy new factory technology. As DRAM prices rise they will increase production to bring in money, tempering DRAM price increases with fresh chip supplies.

IDG News Service

(HK Edition 07/22/2009 page2)