Fab fire sends Micron, SanDisk sharply higher


A massive fire (picture here) at a SK Hynix production facility in China is likely to cause NAND/DRAM shortages just as the peak pre-holiday production period gets ready to start.

Micron (MU) +6.2%, SanDisk (SNDK) +3.5% premarket.

One report says 15% of worldwide NAND/DRAM production occurs at this plant.

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Comments (6)
  • Stock Market Mike
    , contributor
    Comments (3658) | Send Message
     
    WOW. Feel bad for SK Hynix, but really enjoying my call on MU right now. If this is as bad as it seems, the 10% spot market just got smaller. If you don't have NAND/DRAM supply on contract, good luck OEMs!
    4 Sep 2013, 09:02 AM Reply Like
  • Trader's Profit Compass
    , contributor
    Comments (2072) | Send Message
     
    Great catalyst!! LONG MU / IMOS
    4 Sep 2013, 09:31 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (3658) | Send Message
     
    For anyone wondering, IMOS handles packaging/bumping, which are mentioned in the article as possible tasks that the fab handles.

     

    Also long MU / IMOS. (Mostly MU)
    4 Sep 2013, 09:39 AM Reply Like
  • mrshoosh
    , contributor
    Comments (6) | Send Message
     
    Micron, SanDisk, Samsung, all big winners today on this. 15% of the worlds DRAM/NAND production?!?! I don't care who you are, that big of a hole in the supply chain before the holiday system is gonna cause big shifts in these guys stock. Move quick if you want in.
    4 Sep 2013, 10:34 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (3658) | Send Message
     
    I think news just broke out that it's a packaging plant rather than a fab? 15% of Hynix's supply is more likely than the world supply - and if it's just packaging, then it results in delays in supply rather than absolute reduced supply - an important distinction.

     

    Even so, the spot market is going to be rough. Now all that spot capacity will be needed to fulfill contract orders.
    4 Sep 2013, 11:29 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (3658) | Send Message
     
    Finally, some facts:

     

    http://seekingalpha.co...

     

    40% of Hynix's DRAM output affected, but only temporarily.
    4 Sep 2013, 12:23 PM Reply Like
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