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SK Hynix's 2-month lack of output to reach 260K capacity

Posted: 17 Oct 2013 ?? ?Print Version ?Bookmark and Share

Keywords:DRAM? NAND? manufacturing?

According to DRAMeXchange, a research unit of TrendForce, SK Hynix's Wuxi fab is based on Gemini architecture. Part of the fab was originally an 8in wafer fab with a smaller capacity, and this is where the fire originated. The damages affected nearly 100K wafers per month of the plant's 130K wafers per month capacity.

The remaining 30K wafers per month suffered smoke damage, and capacity has not yet been totally restored. It is likely the Wuxi plant will not have any output in September and October. To avoid losing clients, SK Hynix has been urgently increasing capacity at its M10 fab as well as using NAND capacity at the M12 plant for DRAM production, in hopes of minimising the impact of the fire.

TrendForce assistant VP, Avril Wu said SK Hynix was neck and neck with Micron in terms of Q2 DRAM revenue, the suppliers selling $2.56 billion and $2.4 billion, respectively. As the Wuxi plant produced nearly half of SK Hynix's total DRAM output, even if the supplier has inventory stocked up, a revenue drop is unavoidable. TrendForce expects SK Hynix will see the greatest revenue impact in Q4, at which time Micron will have a chance to surpass the Korean manufacturer and take second place in the revenue rankings. Looking at technology, the new Micron group will finish developing the 20nm process in Q4. It is also rumoured that the U.S. supplier intends to expand capacity significantly next year in Rexchip. Micron's ambition will certainly give Samsung a run for DRAM no.1 position in the days to come.

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