South Korea's Hynix, the world's third largest semiconductor firm, has hiked its memory chip prices by 30%.

And Samsung electronics - the world's largest chip maker - has said that it is preparing to follow suit.

The chip makers have been suffering one of the most severe slumps in the industry's history, as personal computer demand dwindled.

This has seen chip prices plunge below cost price in some cases, leaving manufacturers with hefty losses.

The successful negotiation of price rises could signal the start of a turnaround in the industry that is highly cyclical.

Share boost

Shares in both firms soared on Wednesday, helping South Korea's Kospi index to close 4.5% higher at a 16 month high.

Hynix finished 15% higher, after hitting the shares' daily limit, while Samsung was up 10.5%.

The chip price rise, effective on 1 January, is Hynix' third within one month.

It had already boosted prices by 20% twice in December.

Hynix and Samsung together make up 40% of the global chip market.