DRAM Prices Skyrocketing After Hynix Fabrication Plant Fire

19

Comments

+ Add a Comment
avatar

Suffering_Sammy

We were considering adding capacity to increase our renderfarm capability, but after building several pc's last year about this time and comparing ram prices today they have essentially doubled.

Unfortunately, for us anyway, the price is too high and we will simply have to wait until prices come down again. You can plot the demand for a product at a given price point, and at these prices OUR demand falls to zero.

avatar

jbwhite99

Paul et al,

This only impacts SPOT market prices. It is only impacting DRAM (not flash, and I doubt GDDRAM for graphics cards). The last time memory was impacted like this was in September/October of 2000, when the plant in Taiwan that made the glue holding memory chips together burst into flames. It took over a year for the plant to get back together.

I still call this a conspiracy, as capacity seems to have shrunk dramatically this year, which is odd (since fabs don't disappear). In 2000/2001, it took a long time for costs to recover. This is the longest stretch of cost increases that I've seen since then.

To the person asking how many fabs there are - there are only 4 makers of memory around the world: Samsung, Hynix, Infineon (which sold out recently), and Crucial. Major OEMs like Lenovo, HP, and Dell get first crack (since they are biggest buyers), then companies like Kingston, and any memory left (lower quality, etc) goes to the retail companies. There are more than 4 plants, but only 4 big makers.

avatar

tekknyne

Capitalism and the free market are a myth if even the most obviously commodity goods can be affected (controlled) this way. Where are the other suppliers chomping to get at some market share? Where are the other market forces keeping companies honest? Oh, they dont exist.

avatar

d3v

It costs billions to set up a plant not to mention the technical expertise required. And what do you get for it? Losses and more losses. The margins are extremely slim and for most players have turned negative. The recent price increases are long overdue.

avatar

Hey.That_Dude

Not that it really matters as we start the shift to DDR4. In fact this might help transition to DDR4 production as they can revamp the line to start with DDR4 capabilities.

avatar

vrmlbasic

Bring production of computer components back to the first world, or at least to areas that don't seem to be flooded out or burst into flames at very convenient times.

Screw China. Perhaps they should permanently move all production to a Korean factory; Korea is just across "the creek" from Wuxi anyhow.

avatar

d3v

They should bring back VRML and Basic too. 1999 here I come!

avatar

tekknyne

But if people can actually see tangible evidence of the bullshit, then they would know it's not true :)

avatar

fygquas

Does this mean that SSD prices will go up too?

avatar

DDRDiesel

To my knowledge, they should not. DRAM is used solely in the production of RAM, not Solid-State Drives. SSD's use NAND flash memory, which is a more permanent form of memory by comparison to RAM

avatar

fygquas

Okay, but Hynix also makes NAND!

Also, will this have effect on graphic cards? Graphic cards use RAM, right?

avatar

DDRDiesel

Again, I wouldn't be too worried. vRAM is what is mainly used in graphics cards, not DRAM. Also, the reported fire was in a DRAM fab plant, nothing else was reported to have been made at that specific site. This looks to only affect DIMM modules for laptops and desktops, and manufacturers that use Hynix DRAM modules for their RAM

avatar

Damnlogin

1 DRAM Fab fire = 35% price inflation...BS!
How many DRAM Fabrication plants are there?

avatar

dragonfang18

Pics of the fire or it didnt happen! this is only one factory right? So all the DRAM in all the world lost 1 of how many factories to cause prices to go up?

Its like the Western Digital's flood that made HDD's go up for a few years.

avatar

Sparx10

A few years? More like permanently. I remember being able to get a 1TB HDD pre-flood for like $70 and they've been sitting at $90 for years now.

Also here's some pics: http://www.chiphell.com/thread-850052-1-1.html

avatar

froggz

What the hell is going on with these ram fabrication plants that make them catch fire all the time. It seems like every year there's a fire causing the price of ram or hard drives go up, it just seems all too convenient.

avatar

Arnulf

All the time ? This is the first time I've heard of a RAM manufacturing plant catching fire. The last RAM-related fire that drove prices up big time was about 15-20 years ago when Japanese resin-producing factory blew up (they manufacture resin that RAM chips are encased in) and the last non-RAM computer-related disaster I can think of was Thailand floods that affected (magnetic) hard drive production about 5 years ago.

avatar

TheRyGuy

I hope everything gets back to normal as quickly as possible. I also hope it wasn't a ploy to RAM prices back up (har, har). Thanks for the update, I hadn't heard about it until now.

avatar

Paul_Lilly

"I hadn't heard about it until now."

You need to bookmark Maximum PC, we first covered this in September. :)

As to the topic, it'll be interesting if RAM goes up significantly, especially after Hynix stated its overall production and supply volume wouldn't be materially affected.