Large SK Hynix plant halted due to employee infected with coronavirus – flash memory may rise in price

A large flash memory manufacturing facility in Chongqing, China, owned by South Korea’s SK Hynix, has completely shut down operations. The reason is an identified case of COVID-19 in one of the employees. Immediately after the appearance of this information, rumors began to spread about a possible increase in the price of NAND flash memory.

An employee of the SK Hynix plant based in South Korea flew to Incheon International Airport on Saturday, November 28, where he passed the coronavirus test. He was positive, although there were no symptoms of the disease.

The next morning, samples were taken from 3,283 people – factory workers, as well as staff and guests of the hotel where the employee infected with COVID-19 stayed. According to their results, 149 people in contact with the patient were sent to quarantine.

The press office of SK Hynix confirmed the shutdown of the plant in Chongqing and testing of all its employees for COVID. The company could not name the exact timing of the resumption of production, saying only that they would try to do it in the short term.

The Chongqing plant is one of SK Hynix’s largest flash memory production sites. It produces nearly 40% of the company’s chips. Nevertheless, a number of experts believe that if the rise in price will be, it will be short-lived. And it can only arise against the backdrop of negative news, and not because of a real disruption in the supply chain.

According to industry analysts, semiconductor enterprises are now more prepared for coronavirus outbreaks than they were in early 2020, and they now have contingency reserves. In addition, the SK Hynix factory in Chongqing is highly automated and tightly managed, so a large number of cases are not expected there.

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