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takyon writes:

Micron has temporarily suspended operation of a DRAM production facility, leading to predictions of shortages and rising prices:

TrendForce reports that Micron suspended the operation of its Fab-2 DRAM production facility on June 1 due to a malfunctioning nitrogen gas dispensing system. Micron responded that while there was an event, it didn't involve nitrogen leaking. However, Micron's admission of a problem is telling, as TrendForce predicts the event will eliminate 5.5% of the global DRAM production capacity for July. Interestingly, the market analyst firm also claims this could lead to an impact on production for Apple's new iPhone.

The 5.5% output reduction may not sound like a significant event, but in the past, similar issues have served as the catalyst for massive shortages. This could exacerbate the ongoing DRAM shortage, which has already seen DRAM prices rise appreciably.

DRAM prices are on the rise due to slow transitions to new nodes and increased demand in PC, mobile, and server segments. TrendForce predicts that the first quarter of 2017 suffered a 30% increase in the average contract pricing for DIMM modules. Making matters worse, the soothsayer predicts that we will see another 10% increase this quarter, and that is before accounting for the recent production interruption.

Also at Reuters, which reports that Micron denies the event will affect its business:

"Regarding recent rumours about Micron's fabrication facility in Taoyuan, Taiwan, Micron hereby clarifies that there was no nitrogen leaking incident nor evacuating of personnel," Micron said in a statement. "There was indeed a minor facility event but operations are recovering speedily without material impact to the business."

[...] TrendForce analysts base their reports on channel checks in the supply chain, a media officer with TrendForce told Reuters.

It's the floods all over again!

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