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Micron DRAM facility temporarily closed due to contamination, DRAM supply will be strained

Just two weeks ago, we heard that companies were bracing themselves for DRAM and NAND shortages to last throughout the rest of 2017. As a result of these shortages, prices are increasing and it looks like this month in particular things may get a little worse as Micron has had to shut down one of its two DRAM fabrication plants. This particular plant accounted for 5.5 percent of the world's DRAM supply, so it's closure is going to put an even bigger strain on supply and demand.

The production lines at Micron's Fab-2 were closed at the start of July due to a malfunctioning nitrogen gas dispensing system. Due to this malfunction, wafers and equipment were both contaminated.

Chip shortages were first warned of during late 2016/early 2017, though initially this was expected to subside before the second half of this year. However, as reported in June, this is no longer going to be the case, with demand set to outstrip supply until at least early 2018.

In the meantime, sources indicate that Micron plans to have its Fab-2 facility back up and running as soon as possible, though it will be a “time-consuming challenge” to get back up to full production capacity.

KitGuru Says: It looks like we can expect a short term price bump in RAM while Micron sorts out its fabrication plant. The ebb and flow of supply and demand is certainly hitting us hard this year. 

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6 comments

  1. Contamination; more like a self-inflicted wound to jack up prices even further

  2. You don’t increase profits by sabotaging your production (yielding higher prices and more sales to your competitors).

  3. Micron recently stating it as a “minor incident” as of now; not hampering production;
    http://www.taipeitimes.com/News/biz/archives/2017/07/06/2003673964
    http://www.reuters.com/article/us-micron-taiwan-idUSKBN19Q1CL

    But news like these are tripping up estimations of shortages to the point of overpricing on many fronts; 3rd world countries more often; even if I understand the “minor” contamination didn’t damage marketable product, the delay is noteworthy, and adds to GPU shortages due to mining cranking up huge demand.

  4. And rape their share price at the same time? I don’t think so…..

  5. Possible fake story made up to increase demand all the while they just store the chips still being made for a few weeks

  6. Why the hell would the CEOs make up a fake story in order to batter their own share holdings? That’s just stupid.
    But ya know, giant industrial conspiracies that make no sense and hits everyone’s wallet (company included) makes more sense than a faulty part in a factory1! #tinhatWarrior