Friday, June 28th 2019
Toshiba, WD NAND Production in Yokkaichi Hit With Power Outage: 6 Exabytes of NAND Production Affected
In another episode of the "so timely considering market projections for NAND pricing" news, Toshiba and Western Digital have disclosed expected impacts following an unexpected, 13-minute power outage on June 15th, that affected the companies' joint manufacturing facilities in Yokkaichi, Japan. Western Digital announced a loss of almost 6 Exabytes of NAND production - Toshiba is expected to have lost anywhere between 6 Exabytes and 9 Exabytes themselves, since they usually have their factories working closer to full capacity. Return to standard manufacturing rates is expected to only occur by mid-July.
Damage includes impacted wafers that were being processed, the facilities, and production equipment, hence the need for an extended inoperability period to seriously assess damages and required reinvestment. 35% of the world's NAND supply is produced at this Yokkaichi Operation campus (which includes six factories and an R&D center), so this outage and NAND flash loss is likely to impact the global markets. Whether or not this is enough to move the needle from oversupply to undersupply is as of yet unknown, but it is unlikely so - although pricing changes are expected after Q3 and Q4 orders have been settled (whose pricing has already been settled and can't be subject to change). Loss of confidence in the Toshiba and Western Digital manufacturing venture, however, could help offset some of that pricing increase. Obviously, companies have insurance policies that cover them in case of such unexpected events - should they fall squarely out of the control of said companies.
Sources:
Western Digital, TrendForce, via AnandTech
Damage includes impacted wafers that were being processed, the facilities, and production equipment, hence the need for an extended inoperability period to seriously assess damages and required reinvestment. 35% of the world's NAND supply is produced at this Yokkaichi Operation campus (which includes six factories and an R&D center), so this outage and NAND flash loss is likely to impact the global markets. Whether or not this is enough to move the needle from oversupply to undersupply is as of yet unknown, but it is unlikely so - although pricing changes are expected after Q3 and Q4 orders have been settled (whose pricing has already been settled and can't be subject to change). Loss of confidence in the Toshiba and Western Digital manufacturing venture, however, could help offset some of that pricing increase. Obviously, companies have insurance policies that cover them in case of such unexpected events - should they fall squarely out of the control of said companies.
43 Comments on Toshiba, WD NAND Production in Yokkaichi Hit With Power Outage: 6 Exabytes of NAND Production Affected
Grab some SSD now, they price will be going up soon.
www.cnn.com/2019/06/24/asia/japan-high-speed-train-slug-intl-hnk/index.html
Typhoons in Japan occur the most from July to October, especially in August and September. According to Japan Meteorological Agency, about 25 typhoons occur and 11 approach a year on average in the past thirty years.
:) just thinking
So far these tactics haven't stopped the drop in prices for memory, there's other factors too but I'm suspecting that at this point enthusiast know better than to buckle to these price gouges.
Again, how convenient.
Legally they're two entities though.
Ass for the quick poll, Abstained.
This is ridiculous, factory's like this has like five time redundancy to prevent power outage.
Like a perfect storm, losing 6-9 Exabytes, just the right amount to stop over supply and prices from falling further.
Pricing syndicate still up and running, they take turn increase prices, last time it was Hynix, this time it was Toshiba's turn.
The insurance company should take a really long hard look at the supposed cause of this power outage to calculate the odds of this happening.
At this point the odds are more favorable to this being a sabotage to keep prices up.
Why, because these accidents always seam to happen when they are needed the most to increase memory prices.
When memory prices are insanely high all factory's run perfectly without any major problem for years, even at over capacity, without these accidents happening.