The Fire accident at Hynix’s chip-making plant is not as serious as reported

Though firefighters were trying to put off the fire which was caught at Hynix’s production facility in China for more than an hour, its not as serious as it was thought or reported by many.

Hynix, currently the #2 in DRAM chip manufacturing business with the share of 30% in the global memory chip market made an initial damage assessment, which pointed out that there was no material damage to the fabrication plan or its clean room in their Chinese plant that’s responsible to product 12-15% of the chips distributed and sold worldwide.

Though Hynix did suspend about 40-50% of its DRAM output from the fabrication plant, the company assured that its only temporarily.

The company representative said the following:

“Currently, there is no material damage to the fab equipment in the clean room, thus we expect to resume operations in a short time period so that overall production and supply volume would not be materially affected. In addition, we expect that the majority of damage will be covered through insurance.”

logo hynixSeongae Park also added that though photographs showed large about of smoke being circulated around the area, the damages aren’t that severe as the smoke was created because of the concentration of fire in the air purification facilities which were linked to the rooftop of the fabrication plan.

Hopefully, Hynix can restart their fabrication of DRAM as quick as possible, as longer shut down of operations will affect the supply of DRAM chips, therefore creating a problem and eventually increasing the price.

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