SK Hynix plant damage minor, repairs underway

September 5, 2013 | 09:25

Tags: #dram #fab #fabrication #financial #fire #semiconductor

Companies: #china #sk-hynix

Memory maker SK Hynix has denied that a fire at one of its production facilities will have any serious effect on global DRAM supplies, promising to have the plant back up and running shortly.

The fire started yesterday morning at one of the company's Chinese fabrication plants, responsible for around 40 per cent of the company's overall DRAM output - an impressive 12 per cent of the global DRAM supply. The plant, naturally, was shut down, although thankfully with no loss of life and only minor injuries to a single plant employee.

The market panicked at the thought of DRAM shortages, and stock in SK Hynix rivals shot up as investors predicted bumper profits in the short term. Thankfully for consumers, who would have been facing higher prices, SK Hynix says that the fire was relatively minor - and did not harm the plant's fabrication equipment.

'There is no material damage to the fab equipment in the clean room,' claimed SK Hynix's Seongae Park of the fire, 'thus we expect to resume operations in a short time period so that overall production and supply volume would not be materially affected.' Park also claimed that the company will be able to claim on its insurance for the cost of the damage.

The plumes of smoke pictured by local news agencies, Park claims, led to a belief that the fire was significantly more damaging than was actually the case. 'The smoke was created because the fire was concentrated in the air purification facilities that are linked to the rooftop,' Park said.

Although Park has not provided a firm timescale for getting the plant back on-line, he has stated that it will be resuming its operations in 'a short time.'
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