Hynix's China plant may restart in 2-3 weeks: Source

SEOUL: SK Hynix's fire-hit China plant, which produces half of its computer memory chips, is likely to resume operations within 2-3 weeks or even earlier, said a source familiar with the situation, citing a preliminary estimate of the damage.

Wednesday's fire at the plant of the key Apple supplier has caused concern that a prolonged suspension of operations, such as a shut-down of a month or more, would push up chip prices. The factory produces nearly 15% of global DRAM semiconductors.

"Operations are likely to resume soon... possibly within two to three weeks or even earlier, but it's still an early estimation, and a clearer picture will emerge by next week," the source said.

The source declined to be identified as the plan has yet to be made public.

"Damages are minimal and (chip) wafer losses are quite small, as the fire was mainly in the ventilation area and major production facilities including the clean room were not affected," the source said.

The source said Hynix has around 2-3 weeks of DRAM inventory, and that little impact was seen on mobile chips.

Spot prices of DRAM or dynamic random access memory chips surged 16 percent on Thursday, according to price tracker DRAMeXchange. They traded steady on Friday.

Shares in Hynix were down 2.5% in Friday afternoon trade, after losing 1.8% on Thursday.

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