SK Hynix Wuxi Factory Fire Follow Up
The Hynix fire in October, 2012, resulted in panic in the market with stock hoarding and a soaring 20% increase in the price of DRAM. Previous forecasts that weak demand for standard PC memory would lead to lower prices were completely overthrown after the blaze.
DRAM Pricing Trend Before and After Fire. (DDR3 2Gb 256X8 1600MHz):
After the fire which affected the SK Hynix Wuxi plant, 2Gb DRAM prices soared up more than 50% in October. However, the spot price returned to the $2.10-$2.30 USD range, as market demand was still weak. In general, the market price was expected to flatten out or gradually decrease.
As of the end of December last year, SK Hynix Wuxi's factory is back in production. 2Gb (256X8) yield is not high and demand is still low, so they decided to phase out all 256X8 chips. However, after they issued a (256X8) phase-out notice letter, market prices again began fluctuating. An imbalance between supply and demand as well as production damage from the fire, led to a spot price increase of 2 to 3% in December, 2013.
Recent DRAM (DDR3 1333 2Gb 256X8) Price Chart:
To reduce business impact, longer lead-times, and higher prices, PAPS suggests the following:
1.Qualifying more than one module for the same project, which it is built by a different IC brand.
2.Temporarily using Samsung or Micron IC built modules to avoid longer lead-times and price uncertainty.
Currently, we have a stable supply of AQD modules, built by Samsung or Micron IC. We suggest customers use the following replacement modules to replace Hynix IC modules.