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Global Micron DRAM will face Supply Chain Disruptions

Posted by Jason Miles

Jul 18, 2017 10:51:10 PM

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On July 1st, Micron Technology Taiwan (Inotera) shut down one of its two fabrication plants. The fabrication plant was shut down due to a malfunction in the nitrogen gas dispensing system. The malfunction contaminated the wafers and equipment being used at the Taiwan facility.

Unfortunately, this malfunction and shut-down comes with a heavy price. The DRAM market is already facing significant shortages, and this sudden supply chain disruption will only push up DRAM prices.

DRAMeXchange believes the shut-down means the loss of 60,000 wafers out of the total 125,000 wafers produced during a given month.The global DRAM supply will reduce by additional 5.3 percent just for the month of July.

The cleaning and restoration of the facility will take some time. First, investigators will have to isolate the cause of the malfunction, and once that has been identified, the fault has to be rectified. Micron Technology Taiwan believes the production shut-down will effect third-quarter contracts.

The PC DRAM market has been facing supply constraints since 2016. In fact, it will also effect the manufacture of iPhones. Micron's LPDDR4 products are being used in the production of iPhones, and this setback may even have a negative effect on Apple products.

 

How does this affect the electronic manufacturing industry?

In addition to creating shortages in Micron DRAM it could have a ripple effect creating pocket shortages for other manufacturers as customer scramble to use replacements. Additionally, related industries such as products utilizing FPGA like Intel or Xilinx may have supply chain disruptions since Micron memory are frequently paired with FPGA on PCB boards. SSD, which often utilize Micron Flash memory could also be impacted.

 

If you are in the market for Micron DRAM and are unable to find parts, let us know.

One of the advantages of working with EarthTron is that we have an extensive network of suppliers and buyers. By using our network, you will have access to electronic components that are not in the open market:

1) Hard to find electronic components, including Micron DRAM.

2) Obsolete electronic components

The OEMs we work with have excess-on-hand from a completed project. They are looking to get rid of their stock and clear factory space, and often times, we can get you brand-new parts for less than the franchised distribution price.

The other advantage of working with EarthTron LLC is that we always have an ear to the ground. We keep an eye on the global supply network, always on alert for any disruptions or unexpected occurrences. Previously, the DRAM supply was affected by political turmoil in South Korea.

Supply chain disruptions are inconvenient and can lead to missed sales opportunities. Check out our previous blog on how to ride-out a supply chain disruption.

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Topics: micron, ELECTRONIC COMPONENT SHORTAGES

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