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Explosion of Hynix Workshop in Wuxi Brings Price Rising in Memory

2013-09-30

        Hynix, a Korean DRAM plant, exploded yesterday at the DRAM plant in Wuxi, Jiangsu Province. It was estimated that the fire was severe and smoke was widespread, which affected the supply of DRAM. Global DRAM manufacturers such as Samsung, Micron and Nanco have suspended quotations and stopped receiving orders.  

        The manufacturer pointed out that the monthly wafer casting volume of Hynix in Wuxi was as high as 150,000 pieces, accounting for 15% of the global DRAM supply. Although there was no information about the damage, from the preliminary information, at least one factory was burnt down, and the production line was completely interrupted. The short-term supply shortage of DRAM even caused the spot price of DRAM to soar immediately.

        Since Hynix also had some capacity converted to storage flash memory NAND Flash earlier, the price of NAND Flash would also rise if the explosion and fire also affected NAND Flash.

        The estimated time from the website is about 4:30 p.m., the scene was full of smoke, and the police were also rush to rescue, but it was still uncontrollable for a while. At present, the number of casualties and the situation of the disaster were not clear. It was also reported that there was an unknown gas leakage and evacuation of plant personnel, but it was not officially confirmed by the mainland, nor did Hynix explain the cause and damage of the explosion.

        Samsung agents said yesterday that after the news, they received instructions from Samsung to suspend the offer. Gao Qiquan, general manager of Nanco, said yesterday that he received the notice at about 5 p.m. and was informed of the news. He said, "It is unfortunate that DRAM supply chain was affected."

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