Fire at Micron competitor expected to have little impact on market

broberts@idahostatesman.comSeptember 4, 2013 

A fire one of Micron Technology Inc.’s key competitors is expected to have little impact on the memory chip market, an analyst says.

Fire broke out at the South Korean company SK Hynix Inc.'s plant in Wuxi, China, Wednesday afternoon, and the company closed the factory which produces dynamic random-access memory chips used in mobile phone and personal computers, Bloomberg reported.

Micron officials are assessing the situation. "We do not know enough about the situation or impact on the market to make any further comment at this time," said Dan Francisco, Micron spokesman. "Micron will continue to focus on our customers to ensure that we meet their needs for high-quality memory solutions."

Hynix suffered no material damage to its production facility and “overall production and supply volume would not be materially affected,” company executives said in a statement.

Disruption caused by the fire may reduce global production less than 3 percent and have little worldwide impact, said Mike Howard, an IHS iSuppli semiconductor analyst and former Micron employee.

Howard expects a short-lived blip in DRAM prices, likely growing out of initial confusion following news of the fire.

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