Fire At Hynix FAB May Bump DRAM Prices

Lucas123 writes "A fire that engulfed portions of a major Hynix memory FAB in Wuxi, China earlier today did not do as much damage as reports originally claimed and the company said it expects to be back in production soon. According to a Hynix statement, the fire occurred during equipment installation at around 16:50 Korean time and it was extinguished in under two hours. The company said while published photos showed the FAB facility surrounded by smoke and engulfed in flames, 'the damage is not as severe as it seems as the smoke created was because the fire was concentrated in the air purification facilities that are linked to the rooftop of the fab.' The company also said that there is no material damage to the fab equipment in the clean room, and Hynix expects to resume operations in a short time period, so overall production and supply volume should not be 'materially affected.' Even so, the spot price of DRAM is expected to leap as a result of the news."

Comments

What the press release really means

[etash]

Dear customers, the current rather low DRAM prices are not enough for our greed. Therefore they need to be higher. Of course we can't just out of the blue do that, hence we are doing this false flag operation to provide a plausible excuse for the artificial scarcity which will lead at least temporarily to higher prices.

Sincerely ( pun intended ) yours,

CEO of Hynix
Chun Sun Chan.

/tinfoil hat off.