Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Wednesday 25 September 2013]
Shortages in the supply of DRAM chips triggered by a fire at the Wuxi plant of SK Hynix are expected to widen in October, according to industry sources, adding that the damaged plant will not be able to restore full production until the first quarter of 2014.
SK Hynix has said the company expects to resume production at its fire-hit memory fab sometime in October. Despite the company statement, speculation has surfaced that the already tight DRAM supply will be further squeezed, the sources indicated.
PC OEMs holding inventories of more than one month have raised concerns that they might face a tight supply situation later in 2013, the sources noted. Those which hold low levels of DRAM inventory, such as Hewlett-Packard (HP), have already approached chipmakers and module firms to ensure a steady supply, the sources said.
DRAM spot prices have soared over 40% since a fire broke out at SK Hynix' Wuxi, China fab on September 4, with 2Gb DDR3 chips rising to US$2.30, the sources observed. Some US-based distributors have even quoted their chips at as high as US$2.50, the sources said.
DRAM contract prices for September are expected to rally more than 20%, the sources said. Official contract quotes have not been released.
Hard to know whether he is stupid or ignorant or both. Obviously he has never spent a day in a wafer fab. If one takes a good look at the pictures of the fire/smoke, look at the pictures of the 2nd floor windows all shattered with fire fighters going in, makes it clear that the fire/smoke made it into the fab module chase support area, possibly into the module itself. If it were just out in the service areas, the firefighters would not have taken that entry. That kind of smoke pattern with CVD equipment says Silane. 2 hours of fire fighting with water, good luck getting that module running again quickly. Whenever production resumes, any serious customer is going to have to do a re-qual. Even if Wuxi restarted Oct 1, no parts would make it to the market until December. If they start in Nov, production cycles will take in into Jan. MU's 1st Q is safe.