Damage from an explosion and fire in SK Hynix’s Wuxi, China DRAM fabrication plant will drive up global memory prices for PCs, servers, and other devices, according to new reports. Most of the damage from the Sept. 4 fire was to the air-purification systems and roof of the plant, according to announcements from parent company SK Hynix, which predicted the fab would be back to full production in less than a month.
SK Hynix announced the plant had restarted production Sept. 7, but won’t be back to full capacity until at least October, leading to “some temporary decrease” in its output of chips. The primary culprit is damage to its clean rooms, contamination of manufacturing systems, reconfiguration of manufacturing systems, and meticulous inspection and repair of clean facilities by Chinese government and SK Hynix crews, the company reported.
SK Hynix has flooded the site with engineers and repair crews to repair the damage, examine, clean and reconfigure the rest of the plant. Full repairs will take between three months and six months and reduce total output by two months’ worth of production at the Wuxi plant – amounting to approximately 260,000 chips, according to DRAMeXchange.
Spot prices for DRAM chips have risen approximately 27 percent since the fire, according to the report.
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