TrendForce: SK Hynix’s Two-Month Lack of Output to Amount to 260K Capacity Decrease, Micron to See Second Largest Market Share in Q4

According to DRAMeXchange, a division of global market research firm TrendForce, SK Hynix’s Wuxi fab is based on Gemini architecture. Part of the fab was originally an 8-inch wafer fab with a smaller capacity, and this is where the fire originated. The damages have affected around 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 been restored as of today. 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 minimizing the impact of the fire.

TrendForce assistant vice president, Avril Wu indicates SK Hynix was neck and neck with Micron in terms of second quarter DRAM revenue, the suppliers selling US$2.56 billion and US$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 the fourth quarter, 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 the fourth quarter. It is also rumored 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.