Maybe PC component and mobile device prices won't rise, after all
News of a fire at SK Hynix's plant in China blazed across the Internet earlier this week, leading to speculation that prices for for devices like solid state drive (SSDs), tablets, and smartphones would all see a spike. Pictures showed black smoke billowing from the facility, and based on similar incidents to other memory makers in the 1990s, TrendForce surmised it might be six months or more before Hynix is fully operational.
Hynix has a different time frame in mind.
"Currently, there is no material damage to the fab equipment in the clean room, thus we expect to resume operations in a short time period so that overall production and supply volume would not be materially affected," company representative Seongae Park said in a statement, according to Reuters.
Hynix expects insurance to cover the bulk of the damage, which the company says looks much worse in pictures than it actually is. According to Hynix, the plumes of dark smoke were created because the fire was concentrated in the air purification facilities linked to the fab's rooftop.
The fire broke out while installing chip equipment. It caused one minor injury before it was extinguished in less than two hours. While Hynix doesn't expect the damage to be significant, the situation could have been much worse, considering the plant produces up to 15 percent of the world's memory chips.