Blackout in NAND memory factories. 6 Exabytes of lost chips and incoming increases?

An interruption of the energy service in the province of Yokkaichi, Japan, involving and damaging Toshiba Memory and Western Digital production equipment on 15 June. The blackout lasted 13 minutes irreversibly worsening the wafers being processed at the moment. In addition, the buildings concerned are still not fully functional to date.

The event could decrease third-quarter supplies for NAND-based flash memories by about 6EB (Exabyte), or about half the annual supply of NAND memories, according to Western Digital. Toshiba has not revealed accurate numbers or estimates, but it has confirmed that the plant operations are still partly suspended today. Considering that the manufacturing of Toshiba's NAND is greater than that of WD, the company's effect could be as high as 9EB.

As for the productive constructions concerned and the machinery usually damaged by the blackout, both businesses also assess the harm in financial terms following the incident. According to analysts from third parties, the event could also lead to a partial loss of trust on the part of the two companies ' clients, which could also lead to further economic losses.

Toshiba and Western Digital jointly own the Yokkaichi Operation Building Complex, where 35% of NAND memories are sold globally in terms of revenue. Today it comprises of five manufacturing plants and a center for research and development, all engaged in the disturbance of energy. Three of the establishments produce memories from 2D and 3D NAND, the other two are used to create more specific memories.

Given the large production capacity of the establishments involved, it is not difficult to estimate a downward effect on the prices of products using 2D and 3D NAND memories in the comming months. However, prices should not alter in the very brief term, given that agreements should all be signed for the third quarter (and perhaps even for the fourth). Whether big clients will discover inexpensive options for subsequent periods or whether the price rise will be generalized remains to be seen.