Hynix DDR memory plants in fire after chemical explosion, market in panic


Yesterday two of Hynix DDR memory plants burned in fire due to chemical explosion.

Hynix is producing 25% of world DDR memory supply, the prices of DDR memory rised with 10% in the first hour after the news and rise with another 10% later yesterday.

So 20% was seen just in the first day after the explosion, although these two factories produce about 10% of world memory supply.

All dealers stopped sales waiting the situation to calm down.

These factories were the only source for GDDR5 memories for nVidia and AMD, so what will happend to the prices of the graphics cards is yet to be seen.

How does this affect OLinuXino? For the moment no affect as we have DDR in stock and can wait to see what will happen with the prices in the next months.

Before this explosion the DDR3 memory prices already were two times more expensive than 8 months ago (Dec 2012 was their pick low when several DDR manufacturers went in bancrupcy and closed factories), so going up for long term period is unlikely, but market speculators wait for situations like this to make quick profit.

3 Comments (+add yours?)

  1. funlw65
    Sep 05, 2013 @ 15:02:20

    Bad news for our pockets. But maybe not, as we also can wait indefinitely if we want :D. Maybe until they are forced to give them almost for nothing on hollydays (well, just exaggerating a bit)


  2. Grulfur
    Sep 05, 2013 @ 16:29:54

    Are there no other manufacturers of GDDR5? I find the timing somewhat suspicious to the point that one might delve into conspiracy theories. Was it really an accident that two factories got destroyed at the same time? And how could that happen in the first place? Some people might be tempted to point to what happened in Natanz.

    Who would profit from a shortage of GDDR5? Microsoft comes to mind. Considering that their upcoming Xbox One is a quarter more expensive than Sony’s PS4, whose potential performance is much better, and that both consoles are said to be subsidized, Sony will certainly not like that. PS4 uses 8 GB GDDR5 memory while Xbox One uses DDR3. Xbox One with its mandatory Kinect is also criticized as an NSA device. So maybe someone has an interest in Microsoft selling devices, given that Microsoft also just bought the Nokia phone company and, not to forget, a while back, Skype.

    Far fetched, wild speculations, but who knows? After all the revelations during the last weeks, nothing seems to be unthinkable anymore. 🙂


  3. rubbrnckr
    Sep 06, 2013 @ 03:55:08

    Reblogged this on Rubbrnckr Blog.


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