DRAM prices up 35% since China fab plant fire
Micron, others likely to benefit from Hynix DRAM shortage
Computerworld - DRAM supplies from Hynix's fabrication (fab) plant in Wuxi, China, aren't expected to return to normal until next year after a fire severely damaged that facility, according to a new report.
In the meantime, DRAM prices are up 35% since the fire, as looming supply constraints prevail and there appears to be no rush by DRAM makers to sign new contracts, according to the report from analysts at investment bank PiperJaffray.
Hynix said it would make every effort to ramp up its Waxi-based fab operations to return to normal DRAM production by this November, a prediction PiperJaffray contested.
"While press reports have indicated that Hynix's DRAM fab in Wuxi, China could be coming back online in November following the fire, we now believe that it is likely to take much longer than expected in terms of bringing the [130,000 to 140,000] wafers a month of DRAM (50% of Hynix's installed DRAM capacity) by this time frame, given the destruction from the fire," PiperJaffray's report states.
In the meantime, Hynix said is planning to start up DRAM in its M12 fab in Korea to offset the shortfall in supply.
Hynix competitor, Micron will benefit from the DRAM shortfall, a financial bonus that should show up in its quarterly report in December, PiperJaffray's report said.
Lucas Mearian covers storage, disaster recovery and business continuity, financial services infrastructure and health care IT for Computerworld. Follow Lucas on Twitter at @lucasmearian or subscribe to Lucas's RSS feed . His e-mail address is email@example.com.
Read more about Data Storage in Computerworld's Data Storage Topic Center.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- OpenStack Hype vs. Reality: CIO Quick Pulse Open-source architecture can enable IT departments to build infrastructure-as-a-service (IaaS) clouds running on standard hardware.
- OpenStack and Red Hat: IDC White paper Most OpenStack deployments are by public cloud providers that are early adopters of technology and use OpenStack in a do-it-yourself deployment and support...
- Red Hat Enterprise Linux OpenStack Platform Datasheet Seamlessly transition to the cloud. Red Hat Enterprise Linux OpenStack Platform delivers an integrated foundation to create, deploy, and scale a secure and...
- Pay-as-you-Grow Data Protection: IBM Tivoli's Full-featured Data Protection Suite for Small to Medium Businesses IBM Tivoli Storage Manager Suite for Unified Recovery gives small and medium businesses the opportunity to start out with only the individual solutions...
- Make or Break: New Auto Products Must Go To Market On Time This Webcast quantifies the value of time to market for the auto industry and highlights how Primavera Enterprise Portfolio Management can help organizations.
- IBM Flash Webcast: Optimizing your Datacenter for Efficient Storage & ROI Register for this webcast to learn the benefits of flash storage from IBM Customer, Leonardo Irastorza of Royal Caribbean Cruise Ltd and Storage... All Data Storage White Papers | Webcasts