Fire at Hynix memory plant temporarily suspends operations

By on September 4, 2013, 4:45 PM
hynix, fire, factory, memory shipments, memory manufacturer

A chemical explosion led to a fire at SK Hynix Semiconductor’s memory fabrication facility in Wuxi, China earlier today. Initial reports pegged the damage as substantial with a number of memory companies halting shipments but a statement from Hynix noted the fires have since been extinguished and damage isn’t as widespread as first thought.

The fire started around 0750 GMT and raged on for more than an hour before firefighters were able to get it under control. Only one person was injured from the blaze, reportedly a minor injury at that.

Hynix said they have found no major material damage to fabrication gear in the plant’s clean room. As such, the company expects to resume operations in a short time period so that overall production and supply volume will be affected as little as possible. What’s more, insurance is expected to cover the majority of damages.

Hynix was responsible for 30 percent of the memory chip market during the second quarter. The facility in question is responsible for producing between 40 and 50 percent of their total DRAM output. Chip prices have already nearly doubled this year due to tight supply. A major catastrophe would have certainly had dire effects on technology firms worldwide but fortunately it doesn’t look like that will be the case.

Share value in Micron is up more than five percent on the news while SanDisk stock is up 3.31 percent.




User Comments: 5

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tipstir tipstir, TS Ambassador, said:

These chips are will go up in price until the plant gets back underway.. Best buy those upgrades for memory chips an etc.

ikesmasher said:

The last thing the PC industry needs is factory stops. It was bad with the thailand flooding, its bad with this. The prices will go up regardless of how bad damage actually is.

captaincranky captaincranky, TechSpot Addict, said:

I wish I needed memory sticks, then I could wail and moan about this too....

Skidmarksdeluxe Skidmarksdeluxe said:

I wish I needed memory sticks, then I could wail and moan about this too....

I wish I was the arsonist, then I could've also been paid a fortune & a guarantee to get off scott free...

Scavengers Scavengers said:

Just as memory prices were finally starting to fall. Of course damage was minimal and if Hynix couldn't keep up then Im sure others could step in.

Dave

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