Seeking Alpha

Micron, SanDisk rally on new Hynix fire reports, surging memory prices

  • Countering comments made by SK Hynix (HXSCL.OB) yesterday, Wedge Partners says the fire that broke out at Hynix's Chinese memory fab will cause at least a 2-month production delay, and that Hynix has suspended price negotiations with clients.
  • The remarks come as DRAM spot prices jump 20% on account of the fire, and reports emerge several top memory manufacturers have joined Hynix in putting shipments on hold.
  • There could be major downstream ramifications: TrendForce thinks 11M notebook shipments and 10M smartphone shipments will be affected within a month if "main production procedures are halted." The firm estimates it will take 6 months for all of the damage to be fixed.
  • Prior to the fire, DRAM and NAND prices had been slumping this summer after rallying earlier this year.
  • Micron (MU +3%) and SanDisk (SNDK +1.9%) are adding to yesterday's gains. DRAM/NAND giant Samsung (SSNLF.PK, SSNGY.OB) rose 1.9% overnight in Seoul, while Hynix fell 1.8%.
Comments (2)
  • JUDOKA
    , contributor
    Comments (406) | Send Message
     
    Anyone follow HIMX.Breakout.Wonder why or if this is somehow tied in to the situation mentioned above.
    5 Sep 2013, 03:07 PM Reply Like
  • Benni
    , contributor
    Comments (539) | Send Message
     
    I saw pictures of that fire......it was not a teeny weeny itsy bitsy thing. It tookout an entire building with another sitting right next to it that appeared to have a small corner of that one on fire as well. This Chinese bunch is only telling the world what the Chicom government allows Hynix to tell the world. Just you wait, this two month hiatus will turn into 6 months, then 9, then a year. This is the way things work inside these statist dictatorships, you know, control the bad information flow.

     

    Fine with me, I'll just have to hold on to my 2000 shares of MU I bought at 13.50 a little longer than I thought I might need to before it hits $25-$30 by the end of this year.
    5 Sep 2013, 09:24 PM Reply Like
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