SK Hynix still unable to meet DRAM demand

DigiTimes reports SK Hynix's DRAM supply continues to fall short of demand from PC OEM clients. The company's DRAM production received a big hit in September due to a fire at its fab in China but SK Hynix claims full operation resumed in November. One cause for the short fall of DRAM supply are the unsatisfactory yield rates in the transition from NAND flash to DRAM production:

SK Hynix' DRAM supply has been constrained following a fire at its China fab in early September. The firm said previously that it would significantly increase production capacity for DRAM products at its fabs in South Korea, by allocating more capacities meant originally for the manufacture of NAND flash to DRAM chips.

However, SK Hynix has still seen its overall DRAM supply fall short of customer demand, due to unsatisfactory yield rates in the transition from NAND flash to DRAM production, the sources indicated.

As a result of SK Hynix' continued tight supply, contract prices for DRAM memory are set to stay high or even rise slightly in January 2014, the sources noted. Prices are unlikely to drop prior to the Lunar New Year holidays in late January 2014, the sources added.