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A possible chip shortage tsunami on the horizon

There have been a few notable chip shortages over the years, I experienced the Sumitomo shortage of 1993. In a week memory prices doubled. At one point $15 memory modules were selling wholesale for $100 a module. We are not expecting such a dramatic price rise, however it illustrates how volatile component pricing can be.

News yesterday was a fire had broken out in a Hynix fab factory in China. Initial fears were it would affect RAM production, and maybe increase prices due to a shortage.

Hynix later announced that it would resume production shortly, as the fire did not affect a major part of the factory.

Currently, most news about the subject is memory production will not be affected. It has flowed into global spot prices for memory. Our latest pricing from memory brokers has spiked 5% higher, with warnings of further price increases due to uncertainty. The Australian dollar has risen in value this week, which will offset some of the increase in costs.

We are warning customers to expect higher memory prices next week on our website as the new stock filters into our market.

 

About the author: James Hopkin is a part time Upgradeable CEO, and a full time skateboarder. His natural habitat is going fast down your local hills.

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