The power outage of Micron's Taoyuan plant may affect global DRAM supply.

According to foreign media reports, on the afternoon of December 3, an unwarned power outage occurred in the factory of Micron Technology, a storage chip and storage solution provider, in Taoyuan. Industry sources said that the power outage of Micron's Taoyuan plant may affect global DRAM supply, especially the server part.

According to reports, the power outage of Micron’s Taoyuan plant lasted for more than two hours, causing damage to the furnace tubes of some production lines. It is estimated that the affected capacity will account for approximately one week of Micron Wafer Technology’s capacity.

It is reported that the Micron power outage has already affected the sensitive spot market. After the news came out, major module manufacturers suspended their quotations on the evening of December 3, and other traders also followed up on the morning of the 4th to suspend their quotations. .

This unexpected event has also aroused the willingness of the buyer's market to stock up. TrendForce expects that this event will start an upward trend in contract and spot prices, which will start the upward cycle of this wave of quotations earlier.

Micron Technology stated that there was a power outage in the Taoyuan plant and the plant immediately activated the safety protection mechanism. It is currently confirmed that all employees are safe and the impact of the incident is under investigation and confirmation.

Subsequently, Micron stated in the latest statement that the equipment at the Taoyuan plant has been operating normally after the power is restored, and it is expected that the plant will resume production within a few days. Currently, the company is evaluating the consequences of the power outage.

Foreign media reported that a power outage at Micron’s Taoyuan plant could reduce supply in the industry and lead to an increase in chip spot prices. In addition, Mizuho analyst Vijay Rakesh also believes that the plant's "short-term" power outage may exacerbate the DRAM shortage.

Micron is one of the world's largest DRAM (Dynamic Random Access Memory) chip manufacturers. If ranked according to the DRAM revenue market share, Micron ranks third, accounting for 25% of the global market. The Taoyuan plant, which was hit by the power outage, accounted for more than 30% of Micron’s output in terms of production capacity.

Micron’s Taoyuan plant is one of the company’s two main DRAM production plants in Taiwan, and the other is located near Taichung.

According to foreign media, Micron’s Taoyuan plant mainly uses 10nm-level process technology to manufacture DDR4 and LPDDR4 memory, with a monthly production capacity of approximately 125,000 wafers, accounting for approximately 8.8% of global DRAM supply.