RAM prices about to go crazy??

Start a meaningless fire in a factory and raise the world prices by 15%.

The fire might cost a million in damage but imagine the extra profits from 15% price increases on world sales.Personally i would not disregard foul play here and why should prices go up by much? That shortage will take weeks to hit consumers why should we pay when they is backlogs of unsold cheap ram? Retailers love this kind of crap they will be instantly taking +15% profits in some places on ram that was bought ages ago at normal prices.


They churn out more ram than they probably ever sell anyways.
 
Rofflay said:
Start a meaningless fire in a factory and raise the world prices by 15%.

The fire might cost a million in damage but imagine the extra profits from 15% price increases on world sales.Personally i would not disregard foul play here and why should prices go up by much? That shortage will take weeks to hit consumers why should we pay when they is backlogs of unsold cheap ram? Retailers love this kind of crap they will be instantly taking +15% profits in some places on ram that was bought ages ago at normal prices.


They churn out more ram than they probably ever sell anyways.
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With the way how tech is at the moment, we are not rushing to buy more RAM. So if RAM sales slow down enough because of the high prices then its going to bite them in the backside at some point.
 
I will just wait and see what happens. I am not going rushing out to buy something because of this fire. If the prices go up, they go up. And I will wait for them to full again. I am sure this will be exploited, though.
 
Gripen90 said:
It's like back when HD prices went ballistic a year ago due to flooding.

Hmm maybe it should get that 16GB 1866Mhz set ordered now so I'm ready for 4930k later.
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a few things are differnt, the floods temporaly stop manufacturing. In this case 15% of industry production is gone and is not going to be coming back for a while (Fabs probably take years to build and tool up)

The "hard drive floods where "18-24+ months ago and prices are still not down to pre floods level (I purchased a 2TB F2 for £50 in June 2011, you be struggling to find this sort of price now.

I remmber back in the mid 1990's as a kid there being a fires in a couple of Ram Fabs in china prices sky rocketed quickly and stay high for years
 
Rofflay said:
The fire might cost a million in damage but imagine the extra profits from 15% price increases on world sales.Personally i would not disregard foul play here and why should prices go up by much? That shortage will take weeks to hit consumers why should we pay when they is backlogs of unsold cheap ram? Retailers love this kind of crap they will be instantly taking +15% profits in some places on ram that was bought ages ago at normal prices.
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That's not really how it works - the price is set by supply and demand, or in many cases anticipated (speculation) supply and demand. What a company actually bought the stock for a fortnight ago is largely meaningless.

If this fire causes demand to jump then prices will rise irrelevant of what the real impact on supply turns out to me.
 
Problem is its 15% and retailers and suppliers will add 50% to the price mabey evan 100%.

Greedy sods the lot of them.

Samsung could easily ramp up production to help fill in the gay if they wanted. And I expect they will
 
Hynix Fabs Explode, GDDR5 Crisis Expected

http://www.kitguru.net/components/memory/faith/hynix-fabs-on-fire-after-chemical-explosion/

Reports are still coming in, but the effects are immediate – with memory prices already shooting up by 10% in the first hour after reports started.

This is one of the main factories for nVidia GDDR5 we are told, so expect a major issue for the green team with production and pricing. That said, As nVidia begin to switch to other sources, so AMD’s price for Radeon RAM will also jump up.
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As if the memory situation wasn't bad enough already!

http://www.kitguru.net/components/m...ory-shipments-on-hold-after-hynix-explosions/

High performance GDDR5 from these FABs is crucial to the production of nVidia’s fastest GeForce GTX cards, so if you were thinking about buying one – then NOW might be the right time.

Our sources in the Far East have just told us that major memory brands have stopped shipping anything at all, until they know the full extent of the damage and how the markets will react.

This makes sense.

If you are a major memory brand and your warehouses in the Far East, Europe, USA etc are all packed full of product that was destined to be sold as the ‘pre-explosion price’, why wouldn’t you wait a day or two to see just how far the memory price will jump?

Given the profiling information we have seen on Hynix so far, it seems as though the slower cheaper memory in the world will ‘float up’ in price a little, while the performance product pricing will leap up like a leopard.
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Explosion & fire at Hynix fabs may affect DDR4 roadmap

http://www.kitguru.net/components/memory/faith/intel-braces-for-ddr4-impact-after-hynix-explosions/

The question being asked now is “How much will the Hynix fires impact the delivery of Intel’s roadmap?”

Right now, it’s unclear how much of the push toward DDR4 mass production was shceduled for the FABs that caught fire.
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It's just not Intel who are basing their financial projections on the move to DDR4, mobo makers are expecting to shift a lot of boards as the people holding off on upgrading finally have a reason with Haswell-E.
 
Hynix fire did not cripple the fab:


SK Hynix Inc 000600.KS expects to resume production of memory chips at its Wuxi, China, plant shortly, the South Korean chipmaker said on Wednesday, adding that a fire at the facility caused one minor injury but did not cripple critical equipment.
Hynix said the fire raged for more than an hour. After an initial assessment, the world's No. 2 maker of dynamic random access memory (DRAM) chips said it found no "material" damage to fabrication gear in its clean room at the plant, which produces around 12 to 15 percent of global computer memory chips.
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Going by the pics I doubt it was that minimal. Also it's China which is pretty much feudal, a megacorp can sweep things like this under the rug easily.
 
An update from our own people out in Taiwan:-



As I have mentioned last night about the incident happen at Hynix factory in China. Today we have a little bit more update for you.

The full damage report is not yet being finalized, but the information we have got so far is maybe 80% of the factory is damaged. This facility is monthly production is about 30,000pcs of 12” Wafer, and 80% of them is for DRAM, and 20% of them is for flash.

However, this facility is responsible for about 15% of total DRAM production, therefore, we should be expecting the DRAM price going up significantly. Today the DRAMexchange showed that 256*8 IC price is up more than 15% this morning, so don’t be surprised when you get the new quote from us.

As we all know due to the low demand in August, everyone is trying to get their stock as low as possible, but we believe due to this incident that we may see some panic in the market of trying to get hold of stock. Since the damage is not yet finalized, it would not be possible for getting anything out there, but I will keep you updated. GeIL will do our best to serve you when the situation is more clear.

Just for your information, to rebuild such facility may take up to 1 year, and I bet other manufactures would start to increase their DRAM production as much as they can. Usually, new production will take 40-45 days to come out, so within this period the DRAM price would be flying and we shall not be surprised.

If you have any question, please let me know. We will keep you update for further information as soon as we got new update.



So Hynix say they are not hugely effected and should be able to resume soon, maybe trying to prevent their share price from crashing on the market as everyone else is saying its far worse.

Either scare mongering or Hynix trying to cover up the real damage.

Either way, DRAM prices have increased 20% overnight, glad I did all my ordering first thing yesterday morning when our contacts in Taiwan told us the building was on fire.

Unfortunately we don't stock up on graphics due to how expensive they are, so if graphics pricing increases then unfortunately the prices shall go up pretty quick and people will still buy them because simply sales don't stop when prices move.
 
An update from our own people out in Taiwan:-



As I have mentioned last night about the incident happen at Hynix factory in China. Today we have a little bit more update for you.

The full damage report is not yet being finalized, but the information we have got so far is maybe 80% of the factory is damaged. This facility is monthly production is about 30,000pcs of 12” Wafer, and 80% of them is for DRAM, and 20% of them is for flash.

However, this facility is responsible for about 15% of total DRAM production, therefore, we should be expecting the DRAM price going up significantly. Today the DRAMexchange showed that 256*8 IC price is up more than 15% this morning, so don’t be surprised when you get the new quote from us.

As we all know due to the low demand in August, everyone is trying to get their stock as low as possible, but we believe due to this incident that we may see some panic in the market of trying to get hold of stock. Since the damage is not yet finalized, it would not be possible for getting anything out there, but I will keep you updated. GeIL will do our best to serve you when the situation is more clear.

Just for your information, to rebuild such facility may take up to 1 year, and I bet other manufactures would start to increase their DRAM production as much as they can. Usually, new production will take 40-45 days to come out, so within this period the DRAM price would be flying and we shall not be surprised.

If you have any question, please let me know. We will keep you update for further information as soon as we got new update.



So Hynix say they are not hugely effected and should be able to resume soon, maybe trying to prevent their share price from crashing on the market as everyone else is saying its far worse.

Either scare mongering or Hynix trying to cover up the real damage.

Either way, DRAM prices have increased 20% overnight, glad I did all my ordering first thing yesterday morning when our contacts in Taiwan told us the building was on fire.

Unfortunately we don't stock up on graphics due to how expensive they are, so if graphics pricing increases then unfortunately the prices shall go up pretty quick and people will still buy them because simply sales don't stop when prices move.
 
LtMatt said:
Gibbo any indication how this will affect AMD's new Hawaii card?
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Unkown.

If they are using Hynix then not in a good way, infact very bad way.

If they are using Samsung or another memory then should not be so bad, but price could still be effected slightly in a negative way. :(

We shall have to wait and see.
 
It said in the article this fab was supplying nVidia (Titan I imagine, even the Lightnings use Elpida now) so perhaps it won't be so bad for AMD? As they should have had purchase agreements in place already.
 
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