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World DRAM prices are set to rocket after chemical explosion

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R

richiek

steals Justin Bieber DVDs
http://www.kitguru.net/components/memory/faith/hynix-fabs-on-fire-after-chemical-explosion/

Smoke-Fire-Hynix-KitGuru.jpg


September 4th, 2013 at 1:04 pm - Author faith

World DRAM prices are set to rocket as news comes in that Hynix FABs 1 and 2 have been engulfed in a ball of flame following a huge chemical explosion.

UPDATE: We have just heard that several major memory suppliers have stopped shipments – read more here.

Reports are still coming in, but the effects are immediate – with memory prices already shooting up by 10% in the first hour after reports started.

This is one of the main factories for nVidia GDDR5 we are told, so expect a major issue for the green team with production and pricing. That said, As nVidia begin to switch to other sources, so AMD’s price for Radeon RAM will also jump up.

Hynix makes 30% of the world’s memory in this area, and now it will lose half its production, so world production will drop by 15%.

All figures are approximate – we are getting news in from our Far East sources as we type.
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First the Thailand flooding affecting hard drive prices, now this. Good thing I just finished by PC build.
 
O

Orbis

Member
The issues with hard drive prices after flooding in Thailand in 2011 were massive; prices went up something like 75% in some cases. Prices only just recovered in 2013.
 
M

MacGurcules

Member
tarius1210 said:
So this affects SSD's too?
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There are conflicting reports, but some sources say the fabs that have gone down are actually primarily focused on NAND production. Regardless, RAM and flash production often overlap. Expect existing fabs to retool to cover some of the shortfall from whatever end took the hit.

Supply is going to go down and prices are going to shoot up for both RAM (and downstream products like graphics cards) and SSD (and downstream products like phones).
 
O

Ovid

Member
MacGurcules said:
There are conflicting reports, but some sources say the fabs that have gone down are actually primarily focused on NAND production. Regardless, RAM and flash production often overlap. Expect existing fabs to retool to cover some of the shortfall from whatever end took the hit.

Supply is going to go down and prices are going to shoot up for both RAM (and downstream products like graphics cards) and SSD (and downstream products like phones).
Click to expand...
Thanks.
 
O

Orbis

Member
Aurongel said:
Hopefully there weren't any casualties, everyone seems to be conveniently forgetting that little part.
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Um, no? The topic is primarily about memory prices. You could've made that post just fine without that little moral pat on the back for yourself, but nope. But anyway, there were no fatalities, but may have been people injured naturally.

EDIT: Bleh, that came across too strongly, I apologise. But my point was that I don't think people were forgetting the potential casualties, just focusing on the central theme of the article.
 
O

Omegasquash

Member
MacGurcules said:
There are conflicting reports, but some sources say the fabs that have gone down are actually primarily focused on NAND production. Regardless, RAM and flash production often overlap. Expect existing fabs to retool to cover some of the shortfall from whatever end took the hit.

Supply is going to go down and prices are going to shoot up for both RAM (and downstream products like graphics cards) and SSD (and downstream products like phones).
Click to expand...

Well. Looks like I'll hold off on upgrading for a bit, then. Glad to hear that no one was killed, here.
 
H

Htown

STOP SHITTING ON MY MOTHER'S HEADSTONE
It always shocks me how much these industries are centralized. One factory goes up or one facility gets flooded, and the whole world goes "well SHIT"
 
Nikodemos

Nikodemos

Member
Htown said:
It always shocks me how much these industries are centralized. One factory goes up or one facility gets flooded, and the whole world goes "well SHIT"
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It makes sense from an industrial point of view, but yes, it's not the most risk-aware way of doing business.
 
S

Slayven

Member
If I was a tinhat wearer, I would say the industry gets together and does this every few years to bump up the price.


If I were a tinhat.
 
U

Unhandled Exception

Member
Slayven said:
If I was a tinhat wearer, I would say the industry gets together and does this every few years to bump up the price.


If I were a tinhat.
Click to expand...

I'm willing to bet the cost to repair and replace the necessary equipment isn't exactly cheap. Not to mention all of the destroyed product in the building at the time.
 
G

Goron2000

best junior ever
It was Microsoft you fools.

Now join with me and we shall march to Gamestop and put an end to their reign of tyranny.

tinfoil20hat1.jpg


No magazine rack shall go un-turned.
 
D

Darklord

Banned
Ah it'll be fine. It'll be like SSD's when the floors in Thailand happened. They'll go up, then back down a few months later.
 
Nikodemos

Nikodemos

Member
This heavy consolidation of the memory chip market after the 2009 crash is really damaging in the long run. Qimonda is gone, TwinMOS is churning out some shitty low-level RAM, Elpida got gobbled up by Micron, this ain't good. It looks like the HDD problem all over again.
 
Z

zomgbbqftw

Banned
This fuck everyone. Not just Sony and MS. The price of laptops, tablets and phones will all go up (or margins get thinner).

Crazy events.
 
D

DeadTrees

Member
FWIW, NCIX has some Samsung 840/840 Pro/840 Evo SSDs on sale. New customers can use NEWCUSTOMER10INSTANT092013 for $10 off, or NEWCUSTOMER20GC092013 for a $20 gift card. Just sayin'.
 
R

razgriz417

Member
reuters article was updated

http://www.reuters.com/article/2013/09/04/china-hynix-suspension-idUSL4N0H03CJ20130904


"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," company representative Seongae Park said in a statement.

"In addition, we expect that the majority of damage will be covered through insurance."

The fire started at around 0750 GMT during chip equipment installation and was extinguished in less than two hours, the company said. The incident caused one minor injury, it said, adding that it is still assessing exact damages.
Click to expand...

"While there are some pictures of the fab surrounded by large dark smoke being circulated, please be informed that the damage is not as severe as it seems," Park said.

"The smoke was created because the fire was concentrated in the air purification facilities that are linked to the rooftop of the fab."
Click to expand...
 
D

DieH@rd

Banned
razgriz417 said:
reuters article was updated

http://www.reuters.com/article/2013/09/04/china-hynix-suspension-idUSL4N0H03CJ20130904
Click to expand...

The fire started at around 0750 GMT during chip equipment installation and was extinguished in less than two hours, the company said. The incident caused one minor injury, it said, adding that it is still assessing exact damages.

"In addition, we expect that the majority of damage will be covered through insurance."

...


"While there are some pictures of the fab surrounded by large dark smoke being circulated, please be informed that the damage is not as severe as it seems," Park said.
"The smoke was created because the fire was concentrated in the air purification facilities that are linked to the rooftop of the fab."

...

"Hynix, which commanded 30 percent of the memory chip market in the second quarter, said the plant it has suspended produces around 40 percent to 50 percent of its total DRAM output."


Goddamn. If that factory went up in flames, ~15% of world's production of hq DRAM would dissapeir, creating crazy pricess for years to come.
 
A

akira28

Member
Slayven said:
If I was a tinhat wearer, I would say the industry gets together and does this every few years to bump up the price.


If I were a tinhat.
Click to expand...

you mean like how russian virus makers work for russian anti-virus companies? you're clearly mad.
 
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