Fire-hit SK Hynix DRAM plant in China to resume operations soon

A fire on Wednesday at a China chip plant did not damage the factory's fabrication equipment

A fire at a SK Hynix memory chip plant in Wuxi, China will have no impact on the company's DRAM production, the company said on Thursday, adding that the factory will resume operations soon.

SK Hynix is a major producer of memory chips, and is known to supply key vendors including Apple. The fire at the plant had initially caused concern among analysts that it could cause a major shortage in memory chips, and lead to price jumps.

On Wednesday afternoon, a fire broke out at the South Korean company's factory in Wuxi as a result of "equipment installation," SK Hynix said in an email. The fire was extinguished 90 minutes later, and left no damage to the factory's fabrication equipment, it said.

"Thus we expect to resume operations in a short time period so that overall production and supply volume would not be materially affected," the company said.

The company is still investigating the extent of the damage, but said it was less severe than pictures in the media had suggested. Only one person was injured in the fire.

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