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!



Share Your Thoughts Below  (Always follow our comments policy!)



Keep On Reading!

New Kirby Game Leaks on Nintendo’s Official Website

New Kirby Game Leaks on Nintendo’s Official Website

Kirby Discovery of the Stars is a new Kirby game that is likely going to be announced imminently, in the Ninte...

Dying Light Platinum Edition Will Support Motion Controls On Switch, Techland Confirms

Dying Light Platinum Edition Will Support Motion Controls On Switch, Techland Confirms

A press release from Techland confirms support for motion controls on Nintendo Switch's version of Dying Light...

Mojang Is Working On Two New Minecraft Games – Rumour

Mojang Is Working On Two New Minecraft Games – Rumour

A recent Windows Central report states that 2 Minecraft games are currently in development at Mojang.

The Forgotten City Arrives On Nintendo Switch Today Via Cloud Streaming

The Forgotten City Arrives On Nintendo Switch Today Via Cloud Streaming

Modern StoryTeller's time-looping adventure The Forgotten City drops on Nintendo Switch today via cloud stream...

Hitman 3: Seven Deadly Sins – Act 6 Announcement Trailer Showcases Upcoming Challenges, Roadmap Coming Next Week

Hitman 3: Seven Deadly Sins – Act 6 Announcement Trailer Showcases Upcoming Challenges, Roadmap Coming Next Week

Act 6 of Seven Deadly Sins collection of Hitman 3 will see players tackling some of the most complex contracts...

Bayonetta 3 Launching in Late 2022, Nintendo Website Suggests

Bayonetta 3 Launching in Late 2022, Nintendo Website Suggests

It looks like a release window for the long-awaited Bayonetta 3 might finally be locked in, and could be annou...