DRAM Price Surges On Wuxi Woes
According to DramExchange, 2Gb DDR3 DRAM is up 42% – from $1.60 on Sept 4th to $2.20 now.
It was on September 4th that a fire was reported to have hit Hynix’s Wuxi fab. The moment the news hit, Hynix’s share price went up.
Hynix shares have risen 19% this year on the Kospi exchange which has risen 0.6% this year.
Hynix says it will be back to normal production levels next month.
Meanwhile the DRAM industry, now reduced to three main players, has had a boost. Micron’s shares were $14 on September 3rd and are over $17 now.
The same thing happened when a Japanese resin factory, which provided the encapsulation material for most of the memory IC industry, burned down. The price of memory and of memory makers’ shares soared.
And there was Samsung’s electricity ‘outage’ at a memory factory. Samsung’s electricity supplier denied all knowledge of the ‘outage’, but memory prices, and Samsung’s share price, went sharply up.
The memory makers were expecting a lean H2 but, thanks to the word from Wuxi, they’ll have a useful price boost.
There’s nothing so good for the memory industry as a shortage rumour.