Unlike its neighbors - Japanese - South Koreans are not shaking so often and not so much. Nevertheless, earthquakes in South Korea are happening, and given that this country has become the focus of computer memory production, the shutdown of the corresponding capacities would quickly affect the DRAM market in the direction of price increases. On Wednesday, November 15 at 14:29 local time, 9 km from the port of Pohang, there were tremors with a magnitude of 5.4 points. Destructions and damages of production equipment did not happen, but the semiconductor production lines were temporarily stopped.
On the suspension of production reported to Samsung, SK Hynix and LG Display. Buildings, as well as the infrastructure of facilities and territories of plants were initially planned and built taking into account the work in the seismic zone. At the same time, certain production equipment can not operate under conditions of increased vibration. For example, lithographic installations can break out, so vibration sensors automatically turn off scanners in the event of jamming.
According to SK Hynix, lines were temporarily suspended at the company's factories in Ichon and Cheongju. LG Display reported the suspension of the lines in Phaju and Gumi. Samsung company limited to general words about the temporary suspension of production. All of them also reported that as soon as the shocks stopped, an inspection of the lines was conducted and she did not find any damage. Soon after, all the factories started their regular work.
Despite the optimism of the statements, it should be understood that some of the plates that are already in operation at the time of production shutdown have become useless. Also negatively on the volume of production, simple lines. Calculations of losses are already conducted by specialized specialists and we are promised to acquaint them with the results. Losses are unlikely to be large - most likely in the volume of daily production or two days, but given the memory deficit, even such a small amount may be sensitive to the market.