- SK Hynix (HXSCL.OB) says a fire at a Chinese memory fab caused no material damage to its cleanroom, and that its volumes won't be significantly affected. Likewise, Sterne Agee says Hynix has confirmed production will resume shortly.
- Micron (MU +3.8%) and SanDisk (SNDK +2.6%) have pared their gains, but remain up strongly. With the Chinese fab responsible for 40% of Hynix's DRAM output, any major halt would have a big impact on DRAM and (due to production shifts) NAND flash pricing.
- SanDisk and Micron each saw their short interests jump (I, II) in July and August (SanDisk especially), as investors bet an up cycle in memory pricing (driven by tight supply and strong mobile demand) is coming to an end (previous). The Hynix news may have triggered some short-covering.
- Piper, reiterating an Overweight on Micron and SanDisk, thinks DRAM prices have fallen 5%-15% in Q3, but remain up over 70% YTD.
- Previous: Micron's analyst day DRAM/NAND supply forecasts