Chinese DRAM and NAND foundries have so far escaped the impact of coronavirus, which has disrupted the supply chains of many global industries.
Trendforce, a market research firm, notes that China-based DRAM and NAND flash production, such as Samsung’s Xi’an fab, SK Hynix’s Wuxi fab, YMTC, CXMT, and JHICC, will not be affected by the deadly outbreak, certainly in the short term.
Semiconductor fabs are highly automated, have relatively low demands for manpower and operators stocked up with raw materials before the Chinese Lunar New Year. These factors will prevent output shortages in the near term.
This will remain the case – so long as additional materials that need to be imported can pass through customs as usual. Foundry output can be delivered to customers in China because semiconductor fabs hold national special licenses. These allow them to ship their products throughout domestic China, even with cities under quarantine.
TrendForce forecasts DRAM prices in the first 2020 quarter will continue an uptrend in spite of the outbreak. It said client-side inventories are still showing shortages and purchasing momentum of memory products will continue despite any problems of labor and material shortages downstream .
