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DRAM prices rise to a two year high after fire at Hynix plant

Memory chip prices inflate to two year high after Hynix fire is proved to be worse than originally thought (KRX:000660)
| RAM News | Posted: Sep 25, 2013 1:03 am

Since we first broke the story about a fire last month at an SK Hynix DRAM fabrication facility, TweakTown's editors have been saying that DRAM prices will go up as a result of the damage to the plant. Just how high they would rise was a mystery until today.




A new report from TechSpot shows that on the day of the fire a 2GB capacity DRAM chip cost about $1.60. Now two months after the fire, the same Hynix chip cost a whopping $2.27. This represents a 42 percent rise in DRAM pricing.


Hynix leads the world to believe that the damage was contained to a chemical storage dock and to a ventilation system separate from the clean room fabrication environments. Unfortunately, that appears not to be the case as a bit more damage was done than it was first thought. Hynix says that they have increased production in their South Korean facility to help offset production loss, but the impact of losing one plant is evident.


Production is set to resume to normal levels next month and we should see prices trickle down once again after supply levels even off. The report says that while the fire has negatively impacted Hynix, its competitor Micron has seen their stock rise more than 23 percent since word of the fire first broke.


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