IT House May 9 news, in February this year, Western Digital and its production partner Kai Xia said that due to the contamination of flash memory chip production materials, two joint ventures in Japan’s Mie and Iwate prefectures in Japan were shut down. At that time, Western Digital estimated that the accident lost at least 6.5EB of flash memory (1EB=1024PB, 1PB=1024TB),In the follow-up further investigation, it was confirmed that the loss amounted to 7EB.
In February, the supply chain revealed that Micron informed that both contract and spot prices of NAND chips would rise. Among them, the contract price rose by 17% to 18%, and the spot price rose by 25%, which is the highest known price increase for NAND chips.
And Jerry Cagle, executive vice president of Western Digital’s global customer organization, also notified its customers on February 14, announcing an immediate price increase for all Flash products, but the extent of the increase was not disclosed.
TrendForce estimates that NAND Flash prices will increase by 5-10% in the second quarter due to the contamination incident.
Three months have passed now, and in the most recent financial report for the third quarter of fiscal year 2022 in the West, it showed that the shipments of flash memory bits in the Q3 quarter increased by 9% year-on-year, but fell by 14% month-on-month.The main reason for this is flash contamination, which costs about $200 million.
In addition, Western Digital said the previously announced flash availability reduction of 7EB is still accurate.
IT Home has learned that the two previously affected factories have resumed operations at the end of February.
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