SK Hynix suspends China memory chip plant due to fire

(Reuters) – South Korean chipmaker SK Hynix Inc said on Wednesday it had suspended operations at its China plant, which produces around 12 percent of global computer memory chips, because of a fire.

The world’s No.2 maker of dynamic random access memory (DRAM) chips, which had a 30 percent of the market in the second quarter, said the China plant it has suspended produces around 40 percent of its total DRAM output.

A spokeswoman for Hynix, a major Apple Inc  supplier, said it remained unclear when production would resume.

Any prolonged suspension could tighten global supply of DRAM chips, widely used in computers and mobile devices. DRAM chip prices nearly doubled in the first six months of this year due to tight supply.

The fire started at around 0750 GMT while installing chip equipment, and was extinguished less than two hours. The incident had caused one minor injury and the firm is still assessing exact damages.

Hynix competes with bigger rival Samsung Electronics Co and the third-ranked  Micron technology Inc.

Samsung had 32.7 percent of the global DRAM market in the second quarter and Micron owned 12.9 percent, according to data tracker DrameXchange.

Source: Reuters

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