Fire in World’s Leading Factory for RAM Could Constrain Supply, Lead to Price Spikes

World supply of GDDR5 and DDR3 RAM might be cut by as much as 15%.

Posted By | On 05th, Sep. 2013

Nvidia

Hynix Fabrication Plants, responsible for roughly 30% of the world’s production of DRAM (DDR3 and GDDR5), has had a massive accident resulting in a fire. Although no casualties were reported, at least two plants (FAB 1 and FAB 2) have been put out of commission indefinitely. This could potentially lead to a butterfly effect around the globe, leading to constrained supplies of the RAM chips that companies the world over, notably nVidia and AMD, use, leading, in turn, to increased prices.

In fact, if you were thinking of, for example, buying a new graphics card, such as nVidia GTX, NOW would be the best time to jump on board, because prices will probably skyrocket in a few months.

Other suppliers of RAM have currently ceased shipments of their memory, waiting to see how far up the market price will go before they resume their shipments.

To those of you who are worried that this would affect the production of PS4, Xbox One, or Wii U, well, so far no reports about that (plus Sony, Microsoft, and Nintendo probably front ordered large inventories at fixed rates), but PC CPU and GPU prices might see some northward movement.

[KitGuru News]


Tagged With: , , ,

Amazing Articles You Might Want To Check Out!

Keep On Reading!

Nintendo Switch Games Can Become Switch 2 Editions Through Upgrade Packs on the eShop

Nintendo Switch Games Can Become Switch 2 Editions Through Upgrade Packs on the eShop

The price of upgrade packs on the eShop seem to vary depending on whether the Switch 2 upgrade also adds new c...

Nintendo Switch 2 Will Use Game-Key Cards to Sell Physical Copies of Larger Games

Nintendo Switch 2 Will Use Game-Key Cards to Sell Physical Copies of Larger Games

Game-Key Cards include a code used to download the game, but the player will also need to insert the card into...

Nintendo Switch 2 Home Screen UI is Almost Identical to Original Switch UI

Nintendo Switch 2 Home Screen UI is Almost Identical to Original Switch UI

The only changes in the UI seem to be the fact that it has been designed for a higher resolution display, and ...

Playing Nintendo Switch Games on Switch 2 Through Backwards Compatibility Will Offer Better Experience – Nintendo

Playing Nintendo Switch Games on Switch 2 Through Backwards Compatibility Will Offer Better Experience – Nintendo

Playing games developed for the Switch on more modern hardware apparently leads to better performance and shor...

Nintendo Switch 2 is Powered by a Custom Chip Made by Nvidia

Nintendo Switch 2 is Powered by a Custom Chip Made by Nvidia

While Nintendo hasn't revealed too many details about the chip, the fact that it's made by Nvidia lines up wit...

Drag x Drive Harnesses the Switch 2’s Mouse Functionality in 3v3 Basketball

Drag x Drive Harnesses the Switch 2’s Mouse Functionality in 3v3 Basketball

Play as competitors in wheelchairs and move around the court with the Joy-Con 2's mouse to score points, slam ...