“Prices for memory chips used in smartphones and personal computers surged 19 percent, the most in three years, as SK Hynix Inc. suspended operations in China after a factory fire,” Jungah Lee reports for Bloomberg. “Shares of the Apple Inc. supplier fell.”
“The blaze occurred Sept. 4 during the installation of equipment at a factory in Wuxi, China, manufacturing dynamic random-access memory chips for SK Hynix, the world’s second-largest maker,” Lee reports. “The fire burned for about 90 minutes, the Icheon, South Korea-based company said. One person suffered minor injuries.”
Lee reports, “The price of benchmark DDR3 2-gigabit DRAM jumped 30 cents, the biggest increase since September 2010, to $1.90 yesterday, according to DRAMeXchange, Asia’s largest market for the components. The surge underscores growing concerns that makers of mobile devices and PCs will suffer rising component costs due to potential supply shortages, since SK Hynix makes almost one-third of the world’s DRAM chips. ‘It will take at least half a year before SK Hynix’s damaged clean room is fully rebuilt,’ market research firm TrendForce said in a report yesterday. ‘Such an event is likely to cause the price uptrend of PC DRAM and mobile DRAM to continue throughout’ the fourth quarter. ‘We are still investigating the extent of damage,’ SK Hynix said in an e-mailed statement Sept. 4. ‘Currently, there is no material damage to the fab equipment in the clean room, thus we expect to resume operations in a short time period so that overall production and supply volume would not be materially affected.'”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Now, Now…” for the heads up.]