DRAM contract prices have gone up by about 6% in the first half of April, as PC OEMs are advancing their procurement schedules for the high season amid anticipated shortages, according to sources at memory makers. In the past, they would start the procurement process for a year's peak season around the end of the second quarter. Major PC OEMs are actively looking to secure supply as early as possible, as they are aware that failure of blank wafer and other main raw material supplies from Japan may result in severe chip shortages, the sources indicated. Early April contract prices for 2GB and 4GB DDR3 modules averaged US$18 and US$35, respectively, up about 6%, data gathered by DrameXchange show. Prices started receiving a boost since late March. If issues relating to upstream material supplies persist for a prolonged period of time, prices for 2GB modules will likely rebound to above US$20 in May or June, the sources said. In other news, most of Taiwan-based DRAM makers are likely to report losses for the first quarter of 2011, despite recent increases in chip prices, according to industry observers. Fears of supply chain disruptions in Japan have given the companies stronger bargaining power over PC OEMs in negotiations about contract prices. Nanya Technology, for example, have raised prices by 5-10% in April, the sources said. Previous reports cited industry sources as saying that DRAM makers hold one to two months worth of chip inventory. A massive earthquake and subsequent tsunami struck the northeast coast of Japan on March 11 where major raw material producers such as silicon wafer maker Shin-Etsu Handotai (SEH) have operations. SEH reportedly is a major supplier for Elpida Memory, Hynix Semiconductor, Powerchip Technology, ProMOS Technologies and Rexchip Electronics.