Sharp increase in prices of memory chips in Japan quake aftermath

ComputerWorld-prices of DRAM and NAND flash memory chips shot up Monday after earthquake and tsunamis in Japan as the markets appear concerned fabrication plant shutdowns, interruptions and shortages of supply chain.

DRAM spot prices surged by as much as 7.56% and the 20 and 48% for NAND flash memory chip, according to DRAMExchange.

Japan accounts for 35,7% of world production of NAND flash and DRAM 13,6%, according to DRAMExchange's parent company, TrendForce.

The locations of major electronics manufacturing plants in Japan compared with the epicenter of the quake 8,9 magnitude of last week. (Image by DRAMExchange)

According to a survey of supply chains by TrendForce chip fabrication facilities, have been affected by "serious" 8,9 magnitude quake and subsequent tsunami. As a result, Japan is facing major obstacles for an economic resurgence, the company said.

For example, semiconductor Shin-Etsu and SUMCO have terminated production in silicon wafer fabrication facilities because of equipment damage and power outages. Shin-Etsu Semiconductor is a supplier to large silicon wafer manufacturers Toshiba and Elpida Memory.

Toshiba NAND flash production has experienced only one minor hit, "according to DRAMExchange, but because of the impact on traffic and supplies of raw materials, Toshiba continues to be the evaluation of effects.

"Due to the proximity of the epicenter, the manufacture Iwate Prefecture will be seriously affected. production plants in Kawaguchiko area is memory with minor damage, "said the DRAMExchange.

TrendForce reported continuing problems at nuclear plants, including the shutdown of the main unit 1, Fukushima, Japan. "The inhabitants near Fukushima 1 power station was eliminated. Have an additional unit, unit # 1 and # 3 of the plant have been delivered with boric acid, so that these two units is now completely obsolete, "it said.

"The supply of Northeastern Japan has become a huge issue," said TrendForce. "As a result, the provision for silicon wafer will be significantly reduced, which will cause the global semiconductor players outside of Japan to compete for material."

On Friday, semiconductor market research firm iSuppli expressed similar concerns that silicon wafer production will suffer after the earthquake and tsunamis.

NAND flash memory makers Samsung and Hynix have ceased to provide price information for the spot. Samsung is the largest supplier of NAND flash chips in the world. Spot prices for NAND flash and DRAM in China have started also increase because the offer is likely to be affected, said TrendForce.

Toshiba, SanDisk manufacturing facilities and two large, Fab 4 and Fab 3, 800 miles from the epicenter of the earthquake and production in these sites is described as "thin". According to an official declaration of SanDisk, paused and production staff was hurt in the quake, said TrendForce.

Lucas mearian covered storage, disaster recovery and business continuity, financial services and healthcare IT infrastructure for Computerworld. Follow Lucas in on Twitter @ lucasmearian or subscribe to Lucas RSS feed. E-mail address is lmearian@computerworld.com.

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