RAM prices to remain "high until December" after factory fire

Stock levels still suffering following factory fire in China
Author:
Publish date:
1-dram.jpg

The price of DDR memory looks like it will be higher than usual until the end of the year, senior sources have told PCR, following a factory fire and "panic buying".

A fire broke out at chips manufacturer Hynix SK's factory in Wuxi, China, earlier this month, pushing up prices of DRAM, with less products available in the channel.

Hynix had 30 per cent of the memory chip market in Q2 this year, and has boosted prouction in South Korea following the fire.

But a UK retail source told PCR: "Right now we're looking at about ten per cent increases, and sources are saying these will be high until December. It's fairly frustrating as Hynix stated the fire was not that bad."

One retailer said they are "having nightmares" with DDR memory due to the fire, with "panic buying and brands profiteering off the back of it".

PCR understands that Corsair and Kingston have increased their memory prices, as they are both reliant on Hynix, while other brands are said to be raising prices, too. 

One memory supplier told PCR: "Our DRAM prices have risen following the fire as our stock levels have decreased. It's a very volatile market. Any shortage of product makes the price goes up."

Oh Sang Woo, analyst at Leading Investment & Securities Co, said: "Chip prices will continue to rise throughout Q4. The market previously expected the price to peak out in the fourth quarter."

Related