Fire at SK Hynix China plant sends DRAM spot prices higher

A fire at SK Hynix’ plant in China helped push up DRAM spot prices substantially today (September 5).

Amid concerns that the fire could constrain global supply, chipmakers as well as module manufacturers have moved to control their output or even stop offering quotes, resulting in the price rally.

Spot prices for 2Gb DDR3 chips rose almost 20% in one day on September 5, while those for 4Gb parts grew more than 10%, data gathered by DRAMeXchange showed.

SK Hynix is the world’s second-largest DRAM supplier. The firm grabbed a 30% share of the global DRAM market in the second quarter of 2013, according to DRAMeXchange.

An fire broke out at SK Hynix’ production facility in Wuxi, China on the afternoon of September 4. The fire was put out in about 90 minutes, and one minor injury was reported. Production at the affected facility has been halted.

In response, SK Hynix said it is currently evaluating the extent of damage. The fire did not cause damage to key production equipment, and the company finds no material impact on cleanroom facilities. SK Hynix indicated it expects to resume operations in a short period of time.

Source: Digitimes

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