A fire at the world's second-largest memory chipmaker is not expected to lead to a drastic price increase in the components.
Earlier this month, SK Hynix, a Korean manufacturer, experienced a fire at its China plant. The company makes dynamic random-access memory (DRAM), as well as NAND flash memory.
The company said late last week that it would normalise operations starting in October and increase production at its South Korean plant to make up for lost production, Reuters reports. The wire service says there will be a temporary shortage of NAND as it adjusts production.
Hynix's China plant accounts for half of its memory chip production, Reuters noted. Quoting a statement, it says normal levels will be reached in November.
Linsay Narayanan, channel manager for Fujitsu and Eaton at Westcon-Comztek, says about 12.5% of Fujitsu's memory is sourced from Hynix, with the balance coming from Samsung. She explains that orders will be shifted to Samsung in the interim.
While there will be a price increase, this is expected to be in single digits, notes Narayanan. She says this will not have a huge impact on PC prices in the "big scheme of things".
The fire only affected the DRAM side of Hynix's operations, says Narayanan.
Swift Consulting CEO and tech blogger Liron Segev notes the impact on pricing will depend on how quickly Hynix recovers operations, and that local products were already under pressure after the rand tanked.
Segev says the biggest issue will be whether the company loses focus on research and development as it shifts its attention to restoring the factory. He says this could have an influence on the next generation of chips.
As there are other suppliers in the market, Segev says the overall knock-on result will not be drastic.
Share
