Inotera Memories and Nanya Technology both have reported strong earnings for the second quarter of 2014 and expect sales and gross margin to continue moving upwards in the third quarter due to rising DRAM chip prices amid tight supply, according to industry sources.

Inotera posted net profits of NT$10.62 billion (US$354.46 million) for the second quarter, down 6% from the previous quarter but up 206% on year. EPS stood at NT$1.68 in the quarter.

Gross margin improved to 56% in the second quarter compared to 54% a quarter earlier. For the first half of 2014, net profits totaled NT$21.86 billion or NT$3.53 per share.

Inotera expects its revenues to grow 5-10% sequentially in the third quarter from NT$21.45 billion posted in the previous quarter, while its gross margin and net profits to hit new highs in the quarter.

Nanya posted net profits of NT$6.08 billion in the second quarter, down 0.7% from a quarter earlier due to the appreciation of the local currency. For the second quarter, gross margin stood at 43.8% and EPS reached NT$2.54.

For the first half of 2014, Nanya posted revenues of NT$21.61 billion, net profits of NT$12.21billion and an EPS of NT$5.1.